Millennials & Rent
In the past, we have shared a post on the benefits of owning your home as opposed to renting. Which you can read, here. We completely understand that at some point, most people will choose to rent instead of own. We know that it may be best at different stages of your life!
This can be especially true if you are just getting out of college or moving somewhere new. Mallory and Kelly on the team certainly know this!
We did want to share, however, an article from HousingWire.com that we came across that discusses how Millennials, ages 22 - 30, are the most rent burdened generation. This article has some great information on how much millennials are likely to spend on rent as opposed to the generations before them.
Here are some of our greatest take aways from the article:
Millennials are spending about 45% of their monthly income on rent. This means that they can spend close to $100,000 in rent by the time they turn 30
Baby Boomers spent 36% of monthly income on rent
Gen Xers paid about 41% of income on rent
50% of Millennials say student debt holds them back from taking on a mortgage
In 2017, rent increased by 3.1%, even higher in certain metro areas
Generation Z could spend up to $102,000 in rent during their 20's if the trend continues
If you want to see all the details, you can read the article here!
If you are a Millennial, you may not be entirely shocked by these numbers, especially if you are already paying for rent. However, you may be wondering, how you can get out of the rent cycle if you don't want to spend your income on your rent.
One of the biggest and most important steps you can take is to talk to a financial advisor or lender to determine where you are at financially. Whether they are able to help you realize that you do have the ability to purchase now, or if you will need to do a few things to save extra money, they will get you on the right track!
If you don't know a financial advisor or lender, please reach out to us! We have worked with 100's of people who have had great experiences with their financial needs. We would be happy to help provide you some contacts.
If you have any questions on finding the right home and starting your search, please let us know! We can set you up on a search based on what you are looking for and help keep an eye out for homes that would fit your needs based on what we hear from other agents. We want to help you find the best home for you! Here's another post we shared on more ways to getting ready to buy a home.