The general landscape of the rental market is changing. As more and more Millennials transition from college into the real world, property managers are seeing more of them coming to them for rental housing. In generations’ past, Baby Boomers and Gen-Xers graduated, found a job, settled into an area, and purchased their first homes. The rental market was left primarily to those who couldn’t qualify for a mortgage, the elderly, and college kids. This change in the rental market can be attributed to many factors, including the up again-down again housing market. We are still recovering, slowly at that, from the bubble burst of 2008. Renting vs buying and renting vs selling is still the absolute best way to save and make money in this market. Millennials know this. By renting, they are saving money and have a much lower risk of losing money in the market. Worst-case scenario, they kiss their security deposits goodbye. Not a huge loss. This is only one factor, however, as to why so many Millennials are choosing the option to rent vs buy. The largest reasons are due to a shift in the ideals of our nation’s young adults vs previous generations.
The American Dream as Baby Boomers and Generation X knew it has changed. No longer does “Life, Liberty, and the Pursuit of Happiness” include home ownership, a good job, retirement security, or even outdoing the previous generation. Millennials are less interested in rising up the corporate ladder than they are in seeing the world. Traveling and owning your own business are the largest desires of Millennials, vs landing a gig at a large corporation and buying a house. Ultimately, the “New” American Dream is all about day-to-day control of your own life. These factors play largely into the shifting rental landscape. Young adults are investing in themselves, not a house. Given the state of the housing market that they came of age in, it makes perfect sense. Millennials grew up watching the housing market go bust, molding their perception of homes as investments. They would rather rent at low-risk. Renting also means less investment for a home, as no large down payment would be required, as well as no 30-year mortgage commitment, leaving Millenials free to invest in their own businesses and travel.
Millennials’ rent vs own mentality means that as long as they are pursuing their version of the American Dream, there will be a rental market filled with people who are looking for quality housing without the massive time and money investment. Property managers everywhere should be chomping at the bit to serve these renters. Millennials will make up the majority of the rental market for the foreseeable future, and their rent-first mentality can equal big bucks for property managers everywhere in the form of premium rental rates and higher deposits. Most importantly, Millennials more than any other generation are loyal to the brands that they know and love (See Apple iPhone users vs Samsung Galaxy Phone users). Take care of them, and you have a customer for life who will bring you more business in the form of referrals.
If you are a rental property owner, marketing to Millennials is paramount to your success in landing these high-quality renters. Property Management Pros is your #1 choice for property management! Operating in over 20 markets nation-wide, we make your life easier by professionally and effectively managing your property. We charge flat fees, and no up-front fees to get started! So if you’re looking for a new rental home, or for the best company to help manage your property, leave it to the Pros!
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