The Millennial Generation
The Millennial generation, as defined by the Pew research center, is between the ages of 18 to 34 in 2015 and the oldest “Millennial” was born in 1981. They are projected to number 75.3 million, surpassing the projected 74.9 million Boomers (ages 51 to 69). The Millennial generation rents the most and makes up 27.3 percent of all renter households? Many are still living with their parents, much more than the previous generation at this stage of their lives. In some states, for example, upwards of 40% of millennials are living at home.
Why do Millennials rent?
- Portable Lifestyle – if you don’t know how long you will stay in a particular area, renting works well. Millennials like to know that they aren’t tied down — they can work, live and experience life on the go.
- Career stability – many young people seem to change jobs frequently, renting works well.
- Credit – is either poor or not well established. The good news here for renters is that on time rental payments can establish credit.
- Income instability – It is hard to make a long term commitment on a house when you have worries about a stable income
- No maintenance expenses – when something breaks, just call the landlord. Maintenance can add significantly to the cost of home ownership.
- No down payment – while zero down payments are available, banks like to have the homeowner put some skin in the game. 10% to 25% was the usual down payment.
- Closer to work from an apartment than from a house.
- Amenities – Millennials like amenities, like a pool, gym, meeting and rec rooms, other people your age. High end apartments are like college dorms for adults.
- Along with the portable lifestyle is disdain for stuff that lasts. Furniture retailers see little interest in high quality furniture that lasts generations.
It’s fortunate we live and work in Ft. Wayne. Vocativ, an online Internet blog released the 2014 livability index and Fort Wayne was the only one to make the list from the Hoosier State.
With the city now being named one of the best for Millennials, this is an opportunity to unleash an exciting new future. Ranking in the top percentile in areas such as cost of living, housing (rent and ownership) and low unemployment, Fort Wayne has quickly rose among the ranks of its peers.
My one concern for the future of Millennials is about something called “economic purgatory”. It has been described as a place where Millennials are unable to secure jobs that use their potential while being chronically overeducated and underemployed. Then you have high rents, and inability to save for a house. This has led millennials to avoid risk like the plague. They clip coupons, live with multiple roommates look for any chance to economize.”
JT Integrity Properties is here to help homeowners out of any kind of distressed situation. As investors, we are in business to make a modest profit on any deal, however we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
Give us a call today at 260-202-2222 to let us know what YOU need help with!