The term “settling down” might mean different things for different generations; in years prior, if someone was “settling down” they were getting married, taking on more responsibilities, and buying a home. But these days, things are different — and millennials seem to be redefining what it means to “settle down.”
According to research by Iconoculture, more than 40% of millennials between the ages of 22 and 36 are currently renting versus owning their homes. But the way in which they rent differs from previous generations; the behaviors associated with the way that millennials rent actually closely mirrors the way that previous generations owned their first homes. Millennial renters tend to care about the appearance and condition of their spaces, and they aren’t afraid to invest their own money to make them feel like “home” through gardening, painting, and other mostly cosmetic upgrades.
A common misperception around millennials and renting is that the generation has no desire to own their own homes. Research from Iconoculture suggests otherwise: Around 90% of Millennials who are currently renting say that they would like to be homeowners — if they could afford it. But the number of millennial renters who feel like they need to wait at least five years to make their first home purchase has increased over the last three years from 23 percent to 36 percent. So, it could still be a while before some of these millennial renters feel able to make the leap into home ownership.
Millennial renters and homeowners might have more in common than we even thought, though. When both groups were asked whether their home and the things inside it reflect who they are and their status in life, 73% of owners and 73% of renters agreed.
Even if it’s a long process, millennial renters are expected to have a smooth transition into homeownership. If you’re a renter who’s ready to take the first steps, get in touch with a Mr. Cooper pro.