Dance off! Why renting rocks home ownership’s world
Uh oh. Looks like we started something.
Fellow multihousing blogger Jessica Fiur has fired back at our assertion that renting an apartment is more popular among members of the Millennial generation than purchasing a home. She believes that people in their 20s and 30s are buying homes – rather than just renting apartments – because they are savvy with their money and interested in making investments.
We’d counter that they’re just scared.
The people we know who’ve made recent home purchases have been motivated not by investment potential or life changes like marriage or kids, but fear. They throw around terms like “bottom of the market” and “great opportunity” like they are life preservers made of money.
But is buying a home really such a great investment?
The answer, according to real estate professionals, is “it depends.” If you are purchasing an income property to hold onto for life that will have plenty of time to be improved and appreciate in value, than the answer is “probably, yes.” But if you are planning to use the home as your primary residence, watching it increase in value may be like watching grass grow, and you may be really old before it seems like you made a smart move.
The crazy leaps and bounds that the real estate market made back in the mid to late 2000’s aren’t around anymore, so even purchasers taking advantage of the down market face an element of risk. A combination of smart purchasing decisions, luck and selecting the right location for your new place are key.
So MHN, it isn’t that we are ready to throw down and brawl, er, “dance” with you. We certainly have friends who are trying to capitalize on the current market conditions, too. They’re the ones who stopped talking about anything interesting and now spin long stories about their home improvement projects, which all seem to involve at least 15 trips to Home Depot. But on the whole, it seems like more people our age are putting their money into renting apartments – multifamily housing gained 5.1 million residents over the last decade or so – and that stampede of feet just can’t be wrong.