New Report Many Millennials Choose Ability To Move Over Homeownership

New Report Many Millennials Choose Ability To Move Over Homeownership

High student debt and financing challenges are the reasons most often given for low homeownership rates among young Americans.

But a new study finds that other factors are also keeping young city residents in apartments longer than previous generations.

The Urban Land Institute – which is holding its spring meeting this week in Houston – found that 45 percent of millennials have moved at least twice the last three years.

“Only one in five stayed in place,” said M. Leanne Lachman, president of Lachman Associates LLC in New York City, one of the firms, which did research for they report. While young Americans say that have a long-term desire for homeownership, they also value having more flexibility in where they live and how often they move.

“They will switch housing and jobs as frequently as necessary to improve their quality of life,” Lachman said.

And they say they don’t want the burden of home maintenance and repairs, the just completed study by the Urban Land Institute shows.

Surveying millennials (or Generation Y) in markets around the country, the ULI found that 26 percent of Americans born between the early 1980s to the early 2000s own a home.

More than 20 percent live at home with their parents.

Only 26 percent of millennials own a home. (Urban Land Institute)

Only 26 percent of millennials own a home. (Urban Land Institute)

The share of young people who rent has grown by more than 10 percent since 2010, Lachman said.

“That’s a major shift in just four years and frankly it’s somewhat perplexing,” she said. “What this suggests is a pause of homebuying over the last several years in the face of housing market turmoil.

“Two thirds of renters are comfortable with renting and the remainder would prefer to own but find renting the best alternative.”

Most of millennials don’t rent the newest, most expensive apartments but live in more modest rental communities or rental homes, the survey found.

“Only a limited proportion live in amenity rich apartment communities that target the multi-family elite -he in town – fancy buildings,” Lachman said.

Homeownership rates across the U.S. have been falling since the Great Recession. Dallas-Fort Worth has one of the lowest big-city homeownership rates in the country.

At the end 2014, D-FW’s homeownership rate stood at just over 56 percent – down from 65.2 percent in mid-2010.

Local real estate analysts say that the influx of thousands of young workers to North Texas is fueling apartment rental rolls but not adding much to homeownership in the area.

These new millennial residents usually rent apartments.

Seventy percent of the young Americans surveyed in the ULI report said they want to own their own home by 2020.

But less than half of them see homeownership as a good investment.

“Virtually all of them expect to own a home eventually, yet they aren’t overwhelmingly positive about housing as an investment,” Lachman said. “They have high hopes for themselves in the long-term, despite having to temper their short-term expectations.”

She said that the impact of student debt on homeownership has been overstated.

“Almost half have zero student debt,” Lachman said. “And nearly half of those with student debt are carrying less than $25,000.”

The majority of millennials live don’t in downtown areas.

More than 60 percent reside in the ‘burbs or rural areas, the ULI found.

“Only 13 percent of Gen Yers live in center cities, a much lower share than the press suggests,” Lachman said. “Three out of five have settled in suburbs, small towns or rural areas.”

Lachman said the concentration of millennials in booming suburban job markets will mean opportunities for real estate developers.

“Their desire for an urban lifestyle suggests that the current trend of urbanizing suburbs will present lucrative opportunities for the development community for decades to come.”


For more information, please contact me or visit my website:

Chris Boyington, Realtor, ABR

U.S. Army Veteran

Homes For Heroes
www.homesforheroes.com/affiliate/chris-boyington
Halo Realty Group
214-598-0221 cell

chrisboyington@yahoo.com

www.northtexasheroes.com


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Dated: June 23rd 2015
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