It turns out, millennials arenâ€™t the renter generation after all. The 2022 Consumer Insights Report from Mynd says thereâ€™s a portion of millennial and Gen Z buyers who are pursuing homeownership as a way to build their wealth, but it may not be exactly the way previous generations have done it. The study explains how theyâ€™re breaking into the market:
â€œ. . . younger generations of Americans are not buying into that dream in the same way that older generations have. A growing number of Americans are choosing to make their first real estate purchase as an investment property.â€
Instead of buying a home and moving into it themselves, some young buyers are purchasing a home so they can use it as a rental. This tactic may be gaining popularity, at least in part, because of the affordability challenges brought about by todayâ€™s higher mortgage rates. The report above mentions how many people in this group are considering this approach. It says:
â€œAlmost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.â€
This strategy allows buyers to continue living in their current location, like the bustle of a city apartment or a neighborhood that they know and love, where they couldnâ€™t afford to buy. But instead of giving up on the idea of owning a home, they buy a home in a more affordable area with the intention of renting it out.
In a way, theyâ€™re getting the best of both worlds. They live where they want, and they still own a home where they can afford it.
Their goal is to generate passive income and diversify their assets. It works like this: in addition to having a rental stream of income, the equity they build in their house will also help grow their net worth over time.
If youâ€™re thinking about buying a home as an investment strategy to build your wealth, letâ€™s connect to explore your options and nearby areas that may have homes that fit what youâ€™re looking for.