Of late, you have probably been inundated with news and interesting tidbits about Millennials. In fact, almost everything is all about Millennials. Have you ever wondered why this is? Actually, there is no secret involved. The fact is, the earliest-born Millennials are just approaching middle age and as such, they are the up-and-coming generation with spending power – and a lot of it! With that being said, wouldn’t you imagine that they would then want to invest in homes? Statistics indicate otherwise. There are several interesting reasons why Millennials prefer renting over buying homes and here are a few for you to ponder.
A Generation That Learned from the Mistakes of Their Parents
As you begin delving into what Millennials are all about, there seems to be one common thread. This generation watched their parents lose their proverbial shirts during the Great Recession and are now committed to being unencumbered by possessions and debt. Sure, Millennials seek to earn high incomes, but they don’t want to sink their money into ‘things’ they could lose at the drop of a hat. Millennials certainly don’t like mortgages for this very reason.
Instead of buying a house they might lose if the economy bottoms out, they prefer luxury living such as they would experience in Omaha, Nebraska at Torrey Pines Apartments. With fireplaces, beautifully clean grounds, and an awesome pool, who could ask for more? And, if another, even greater Great Recession hits, they won’t lose a major investment if real estate suddenly takes a nosedive like it did in 2008.
Travel Is a Top Priority
This is a generation that wants to experience more in life. Instead of investing in homes, which is the biggest investment most people make, Millennials would rather spend their money doing things that make them happy. It’s a bit reminiscent of Liberation Theology where they want to “be more, not have more.”
Millennials want to see more of the world (wanderlust) than any generation before them. As the first generation of the digital age, Millennials have become part of a global mentality and so they want to personally see the world they’ve been introduced to online through social media.
Millennials Seek an Unencumbered Lifestyle
Because this generation loves to travel, they want an unencumbered lifestyle. Many Millennials are waiting longer to get married and some are avoiding that commitment altogether. If they travel, and they most certainly will, Millennials don’t want a house to secure while they may be gone for extended periods of time. That is all taken care of for them by apartment security and maintenance crews in their absence.
Perhaps the one big expense Millennials will commit to would be their vehicles. Never before have you seen so many late model vehicles on the road at any one time and it certainly isn’t because prices have dropped! Millennials want to get around town almost as much as they like to travel, so a reliable and sporty vehicle is an absolute must.
One Key Takeaway
This leads us to the conclusion that if you are a real estate investor, or investment group, your capital would probably be best placed in eco-friendly apartment complexes. Why eco-friendly? That’s one thing not mentioned above. Millennials are the one generation with a huge concern for the planet and will gladly pay top dollar for an apartment with green energy, sustainable building materials and landscaping.
If you want to cater to the generation with money to spend, sustainable apartment complexes are the way to go. Get it right and you’ll be filled to capacity with Millennials who can afford the cost. How’s that for maxing out your ROI?