It's no secret that millennials are a generation of renters. Recent research shows that renting is more common among young people than ever before. But why is that? When looking at renting vs. buying, why are so many millennials choosing for the former?
We did some research and we have some answers. If you're a young person looking into renting vs. buying, read on for some reasons why you should rent.
Part of the reason home-ownership among millennials has declined is because we just don't need to own our home. More and more people are holding off on having children and getting married, meaning our home's are typically smaller and less permanent.
If you aren't ready to put down roots in the city you're in currently, buying a home there just doesn't make sense.
Even if you say that you can handle the stresses of homeownership, are you sure that's something you actually want? Landscaping, maintenance and so much more fall on the shoulders of homeowners, whereas those responsibilities for renters are handled by someone else.
If you're like many millennials who don't want to take on the burden of homeownership or simply don't have the time, renting is for you.
One benefit of renting vs. buying for millennials is the accessibility to "trendier" neighborhoods. While you might not be able to afford to buy a home in your ideal neighborhood, you may be able to rent there.
Life is tricky and can change frequently, especially in your younger years. If you aren't sure where life will take you in the impending future, buying a home is probably not the right move to make.
Mortgage commitments are typically either 15 or 30 years, so you should have a considerable amount of the coming years planned out before taking on a house payment.
Getting a home loan is not an option for every person. You must have good credit, a provable financial history and enough money in the bank to put a down payment on a home.
If you find yourself unable to get a loan to buy a decent home, you might consider renting. You can get much more home for the same monthly payment, no pre-approval process, shorter commitments and without having to have a large sum of cash on hand.
Home ownership has some perks, but one perk found exclusively in apartment living is the sense of community brought along with it. In apartment communities, a number of people coexist in the same space, meaning you always have someone to run to in times of need.
Beyond just the people, however, apartment communities offer a number of shared amenities that would not be feasible for homeowners to afford like pools, fitness facilities, shared outdoor spaces, storage rooms and more.
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