As more and more millennials are climbing the ladder of success and starting a family, their housing choices are becoming more and more important. However, the number of millennials who choose to own a home these days is far lower than that of previous generations like the baby boomers and Gen Xers when they were at the same age.
Millennials are facing many obstacles when it comes to homeownership including high student debt, delayed marriage, and choosing to put down roots in higher cost cities around the country. However, when you take a closer look at the costs between renting and buying, it all comes out to be about the same.
So, why should millennials rent a space like an apartment rather than buy their home?
One of the biggest hurdles is coming up with a significant amount of money that is needed for the upfront costs that are involved in purchasing a home. The down payment, for example, may be something that proves to be more difficult for a millennial to pull off.
Additionally, in some of these higher cost areas, it can be challenging to find an affordable home even if they take advantage of down-payment assistance programs. The monthly costs may also prove to be too much to manage.
In addition to the down payment, they must also figure in the costs of the property taxes, insurance, and all other fees and even repairs. So, these numbers begin to add up quickly and makes renting the more attractive option.
Another thing to consider when deciding between renting an apartment and buying a place is where you will be in the next five or ten years. If you aren't planning to stay in the same area for at least five years, then purchasing a home might not be the best option.
Unless you have a home that will break even in the first five years, you will find that it just isn't worth the cost. The value of the home will most likely not appreciate fast enough to help offset the initial upfront costs you paid on the home.
Many millennials may also be unsure if they are going to change careers, will want a change of scenery, or maybe decide to start a family, and they will need a bigger home. Until they know what they want from their future, it is best to rent and save the costs associated with purchasing a home.
If you are ready to rent and want to find the perfect apartment space for you, then contact us today to go over some available options.