Choose an account type
July 6, 2020
While every generation challenges, when it comes to housing, Millennials are the most misunderstood.
The second-largest group in America is the Baby Boomers’ grandchildren, the Millennials. Born between 1981 and 1997 this generation grew up with a surge of technological change and entered adulthood with the challenge of the Great Recession.
Beyond the Stereotype
Often this generation is pigeonholed as free-spirited, chasing experiences over possessions. This stereotype lends to the belief that Millennials choose to rent to complement their desire for upward mobility and hands-off maintenance lifestyle. While the ideology bears elements of truth, it doesn’t tell the whole story.
Affordability & Savings
Despite plans to purchase homes in the future, traditional timeless for purchasing a home are significantly delayed. Despite a desire to purchase a home, 72% of Millennial renters specifically cite affordability as their reason to continue to rent.
As you can imagine, saving for anything becomes a struggle of possibilities when launching a career and burdened by student loan debt (let alone other forms of debt). With 45% of Millennials encumbered by an average of $29,800 in student loan debt this generation’s struggles to save is real. Factor in a rise in housing prices and the impact of the Great Recession as they began careers and it’s easy to understand why the Millennials struggle to save for a down payment to purchase a home. (Time will tell the impact of COVID-19.)
As we watch the US economy continue to flocculate and consider what leaders suggest about inflation, Millennials are likely to remain renters. With that in mind, the need for quality well-run multifamily assets should produce a win-win between investors and Millennials.
Written by Julie Holly
 The Anatomy of a Millennial Renter, Smart Move 2017
 Why Millennials are Renting More — And Why It Works for Them 2018
 2018 Millennial Homeownership Report: American Dream Delayed, Apartment List 2018
 Meet the average American millennial, who has an $8,000 net worth, is delaying life milestones because of student-loan debt, and still relies on parents for money
*This site contains educational content provided by third parties. NuView Trust does not endorse, recommend or approve any of the companies or individuals or investment vehicles or strategies that may be discussed. NuView Trust encourages clients to seek legal or tax advice as necessary and to perform their own due diligence before engaging in any investment vehicle or strategy.