People choose to buy a home for a variety of reasons that can be very personal and the millennial generation is no exception. These young professionals make up a large portion of the demographic of current home buyers, so it's important to know what appeals to them. This year, NerdWallet conducted the Millennials & Homebuying Study and discovered the top 5 reasons that millennial renters decide to take the plunge and purchase a home.
1. Having a Say Over their Living Space - 93%
Like most people, many millennials have dreamt about their ideal living space - how they want to decorate, paint, renovate...etc. However, as a renter, you aren't able to fully customize your space according to your personal taste. In addition, most rentals have restrictions or fees attached to pet ownership. Owning your own home provides the freedom to personalize your living space and add furry friends to your family!
2. Achieve Security & Privacy - 90%
Owning a home gives people a sense of physical and financial security. As the owner, you have control over who accesses your home and when and you can secure it as you see fit. Financial security comes with knowing that your investment is long term and appreciating over time.
3. Live in a Nice Home - 81%
This response is similar to #1. Buying a home is a chance to upgrade your quality of life - you can purchase something nicer or renovate to your hearts content. You can choose the features and finishes in your own space that would make it appeal to your lifestyle.
4. Engage in Community - 75%
Buying a home in a neighborhood is one of the reasons that residents get involved in their community. There is a direct link to your home value and the quality of the neighborhood your home is located in. Furthermore, owning a home allows for the flexibility of caring for an older family member who may need to move in or accommodating your own growing family.
5. Future Flexibility - 53%
Future financial flexibility is the final reason that millennials are choosing to buy a home. A mortgage allows you to use that housing cost as a savings account that can be tapped into in the future, should you need to borrow against it. This is a valuable option during uncertain financial times and can bring a lot of peace knowing it's there.