The housing landscape has come a long way since the modest houses of the ‘50s. You can notice a clear shift in the housing market in every generation. Back in the ‘90s, the easy access to mortgages made home buying not just a trend, but virtually a social decree. At that time, it made sense to grab properties rather than rent. People had different preferences and owning a house was the ultimate American dream.
Yet the gears of the housing industry have shifted again, with Millennials not wanting to stay in one place but interested in travel and to experience different environments. For them, renting has become a more desirable option, whether driven by financial woes or as a deliberate choice. Liberty Realty, an established realtor, has monitored the lifestyles of different generations and their effect on the real estate market.
Baby boomers weren’t categorically against renting, but when housing became plentiful and affordable, home buying took over their mainstream culture. However, there is a large percentage of the generation who now want to leave their properties to rent in buildings with full amenities. The choice to live in the proximity of recreational facilities, shops, and restaurants have become appealing to baby boomers who now value more flexibility in their lifestyle.
In a Realty Mogul/Harris Poll study, a third of Gen Xers favored renting over ownership. Respondents said that renting allowed them to move and explore job opportunities from different states, as well as avoid costly and time-consuming home maintenance duties.
This generation has a reputation for resisting traditional norms and entering the home buying market at a much later time. Lifestyle pleasures such as travel and entertainment are seen as the main reasons Millennials are not joining the path of home ownership at the first opportunity.
Despite its drop in popularity, homeownership remains the cultural norm. But for those who prefer to focus on things other than a huge down payment and a mortgage, renting is a simple and economical solution.