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GENERATIONAL TRENDS
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Millennial and Senior Trends: Why Renting Is a Lifestyle Choice THE REASONS FOR MAJOR HOME-BUYING SHIFTS AMONG THESE GENERATIONS EXTENDS BEYOND HIGH HOME PRICES AND LIMITED HOUSING SUPPLY.
by Kori Covrigaru
• Lounge area for coworking and socializing • Gym or room that can function as a fitness studio
ent or buy? That’s the question. In past generations,
for years provides, which makes saving for a house less desirable. They don’t want to be tied down. It may seem unfathomable, but older generations tended to stay longer in a job, sometimes for life. Now, thanks in part to the pandemic, millennials are increasingly working online doing different types of gig jobs, engaging in what’s known as “polywork.” This work can be done from anywhere. Some millennials don’t want to be tied down with debt, while others want a fulfilling lifestyle over a career. By renting, they are freer to travel or experience living in new places. They want convenience and amenities. Renters are used to having certain amenities available to them—and they might not be able to get them in a house they can afford to buy in today’s market. Amenities important to this group include: • Wi-Fi-enabled communities • Smart home technologies (e.g., smart locks and lighting and automated window treatments) • Package management service (e.g., a package room or locker)
R
buying a house was the dream for many 25-40-year-olds. But today, millennials—and retired seniors— are increasingly renting instead. This major shift in home-buying behavior is a multifaceted issue that goes beyond high home prices and limited housing supply. Let’s explore the reasons renting is becoming a lifestyle choice for so many.
• Modern decors (e.g., upgraded countertops and light fixtures) • Storage space and walk-in closets • Virtual online tours of the property deck
• Pet-friendly facility • Community garden
They want to preview different lifestyles . Many millennials who aren’t tied to one spot with a house like to move to new places and try new experiences and different types of living. They might live in an urban apartment for a while and then move to a country farmhouse. And even though they aren’t necessarily in the market for a home now, they might try renting suburban homes in different neighborhoods to determine if a neighborhood is the right choice for them later. They want the nomad life. Without the commitment of a family or house, some are embracing a nomadic lifestyle in which each day brings
WHY MILLENNIALS ARE RENTING INSTEAD OF BUYING
Millennials are feeling less pressure to settle down, or just plain settle, than previous generations. More millennials are renting because:
They are having fewer kids. Birth rates have been steadily declining for years, making buying a family home and putting down roots less necessary. The Centers for Disease Control and Prevention (CDC) reports that births in the United States in 2020 were down 4% from 2019, making 2020 the sixth consecutive year of declining births. Childless millennials don’t need the stability that staying in one community
64 | think realty magazine :: november – december 2022
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