There are a variety of myths about millennials and home buying that have unfortunately weaved themselves into common knowledge as 'fact'. Among others, they include:
Millennials don't want to buy houses
Millennials need lots of space
Millennials are different from previous generations
Millennials don't hire real estate agents
Millennials don't have any moneyWhen it comes to the economy and generational finance and spending habits, no generation has drawn quite the level of ire as Millennials. From mayonnaise to avocado toast, to diamonds, and more, Millennials are accused of killing industries, being bad with their money, being picky, and having little loyalty to their jobs. But how much of the talk about Millennials is true, and how much of it is rumors?
But the truth is never this absolute, and the discrepancies between myth and fact are large enough that they need to be set straight. Learn more about what's really pulling the strings of millennials.
Job Stability Is Rare
This is more of the driving factor behind home buying trends today, as opposed to millennials preferring not to buy a home or not having the money to do so. When employee/employer loyalty isn't there, both parties have to get used to altering their plans at the drop of a hat. If a millennial loses their job, they may need to pick up and move across the country to secure another one. All of this moving around means they buy less material goods over time, so they end up renting out smaller spaces to conserve their cash for a rainy day. Millennials don't mind living on top of one another if their apartments are bare relative to the rest of the space.
Practicalities Still Apply
Millennials want public parks, pools, and other communal spots, much like the previous generation did. They want real estate agents to help them handle their buying/renting needs because agents button up contracts and ensure everything is done according to the letter of the law. And even though millennials may not be making as much as they hoped they would after graduating college, they're usually making enough to afford a piece of property if factoring in the many government programs available to them. So their wish to skip Mantoloking homeownership doesn't necessarily have to do with their finances, but about being cautious with their limited funds and making practical decisions.
It's easy to make assumptions about a new generation, especially if the previous generation has been shaking their heads at the unconventional choices they seem to be making. But the realities are far more complex and provide much-needed insight into the decisions that are being made.