Home buying has always been a critical milestone of a successful adult life. Think of the previous generations who prioritized buying a residential property as soon as they settled into work.
But everything is changing rapidly, and how individuals prioritize home ownership isn’t an exception.
There’s a surprising change in home buying patterns recently as millennials aren’t investing in residential properties as quickly as their previous generations. According to statistics, only half (51.5%) of millennials reported owning a residential property. The homeownership ratio among millennials still lags behind Generation X and baby boomers.
But why is there such a significant change in home-buying patterns among millennials? Let’s find out the reasons below.
Current Property Prices
High property prices are among the most significant reasons deterring millennials from investing in residential property. Given the higher home prices, it’s difficult for millennials to afford a personal home.
Interest Rates
While high property prices are a crucial reason millennials aren’t buying homes, the problem intensifies because interest rates are too high.
The current interest rate and high property prices have made homeownership way more expensive than renting a property.
Student Loan Debt
One of the significant financial obligations holding millennials from achieving their home ownership dream is student loan debt.
Millennials still account for almost half of the country’s total student debt. As a result, they are unlikely to qualify for homeownership mortgages.
Varying Homeownership Preferences
Orlando is considered one of Florida’s best places to invest in residential property. Yet, for many millennials, homeownership in Orlando isn’t a priority.
Unlike previous generations who valued homeownership greatly, millennials value freedom over homeownership.
Investing in a residential property in a specific state can limit their freedom to relocate and is one of the primary reasons millennials prefer to live in a rented space instead of owning a home.
Limited Inventory of Good Homes
Millennials expect technology and luxury to be incorporated into every aspect of life, including homes. Unfortunately, despite higher prices, the inventory of good homes, as defined by millennials, is limited in Orlando.
As a result, millennials are reluctant to buy residential property in Orlando.
Orlando Realtors Recommend Investing in Residential Property Here!
If you’re a millennial still deciding whether to buy your home soon, here’s a recommendation from Orlando Realtors.
Orlando is one of the best cities for investment in residential property as it offers numerous job opportunities, a decent inventory of good homes, and world-class entertainment. If you have limited or no student debt and have savings to help you qualify for a mortgage, you can buy your home today.
Contact Megan Dowdy Realty; we will help you find the right residential property at the best prices. Contact us now to learn how we can assist you with your home ownership journey!
