Reimagining The American Dream: Millennial Trends In Real Estate

A quaint home in the suburbs with a white picket fence, vibrantly green grass, and friendly neighbors has been the image of the American Dream for quite some time. 

But as millennials lean towards renting, that classic American lifestyle seems to be slipping from reality.

In a survey that polled over 10,000 millennial renters in the U.S., they found that at the current savings rate only 25% of millennials would able to afford a 10 percent down payment on a median-priced home within the next 5 years. 

Student loans proved to be a significant factor in that low percentage. The survey found that had student loans not been a concern the percentage of millennials who could afford the same down payment jumped up to 38% nationally, and up to more than 50% in some metropolitan areas.

What’s In Demand?

Millennials are waiting longer and longer to buy their first home. Between high down payments, student loans, unforeseen repair costs, and qualifying for a loan, rental properties are becoming increasingly more enticing.

According to an article from CNBC, the demand for single-family rental homes is surging. Homebuilders are jumping on this trend to meet growing demand. In 2018, homebuilders built 43,000 single-family rental properties, which is the largest number in 40 years.

Given the growing trend, investors are taking advantage of the opportunity to purchase these properties. Although, looking at factors such as location, renovation costs, and appreciation can be overwhelming when choosing the right rental property to invest in.

For millennials who do want to jump into this market, platforms like Roofstock specialize in connecting buyers will single-family rental properties.

Roofstock provides extensive educational tools and market insights to help buyers find a cost-effective property.

Many real estate marketplaces only allow accredited buyers to make purchases, which usually means having a high net worth and salary. Although, if you are a millennial looking to make a purchase, Roofstock allows nonaccredited investors to buy properties with no minimum purchase price.

Browse Roofstock’s active listings for more information.

Photo by Blake Wheeler on Unsplash