Millennials Prefer to Rent Than Buy
Digested from “The $700,000+ mistake nearly 6 in 10 millennials may make”
MarketWatch (1/22/15) Hill, Catey
Nearly 60 persent of Millennials would rather rent a home than buy one, according to recent survey results. Millennial Branding and EliteDaily, the latter a Millennial-centric publication, recently released results from a 2014 survey of 1,300 millennials regarding, among other things, their consumer behavior. Not surprising, the results noted that nearly 60 percent of Millennials polled — would rather rent a home than buy one.
Personal finance may be a factor, with many Millennials carrying the burden of student loans and a recession-laden job market. Another factor could be Millennials’ tendency to marry and have children later in life. Industry experts argue that, although it may seem less costly and more freeing to rent, buying a home is actually less expensive in the long run than renting one. And waiting too long to purchase a home can be costly as well, with home appreciation and rising interest rates potentially adding up.
The conclusion: Millennials should see what they can afford so they can determine which is really the more cost-effective measure: renting or buying.