Rentals Appeal to All Generations as Cost-Effective Lifestyle Option
Digested from Majority of Boomers, Millennials and Gen Xers View Renting as More Affordable Than Homeownership
The option to rent versus buy a home appeals to all generations, according to a new survey. Seventy-three percent of baby boomers, 70 percent of millennials and 61 percent of Gen Xers say that renting is a more cost-effective option than homeownership.
According to Freddie Macs survey of renters conducted in early 2016, 46 percent say that renting is the option theyre choosing for the present time, regardless of future plans to buy a home. Those planning to buy in the next three years say financial hurdles are holding them back, such as poor credit history, too much debt, or the ability to afford a down payment.
Despite the fact that 54 percent of millennials say their current plan is to rent, those in the 24- to 34-age category are the most likely group in the survey to eventually own a home. In the meantime, these generational groups cite different reasons for renting. Millennials like to rent because it enables them to save money, whereas baby boomers and Gen Xers dont want the responsibilities associated with owning a home.
All of these factors seem to be driving a recent uptick in apartment construction. As national homeownership rates continue to drop, construction of multi-family units is the highest its been in a quarter century. Boomers and millennials in particular appear to be fueling the demand for new construction, as they look for housing options that are affordable and flexible.