More Millennials Are Renting Because They Have To

As more millennials try to become first-time home owners in this fiercely competitive market, many are discovering that renting is their only option, even if they have the necessary income and down payment. A recent RentCafe survey found that high-earning millennials (those earning more than $50,000 per year) filed 39 percent of all rental apartment inquiries in 2021, the highest percentage in five years.

Millennials aren’t the only ones renting more, but their percentage of rental applicants increased by 20% in a year, outpacing the growth of 12% among Gen Xers and 7% among baby boomers earning the same amount. They’re used to it, though: After graduating from high school in the late 2000s, just as the real estate market was collapsing, millennials confronted a difficult employment market and debilitating student-loan debt. For the first time in their adult lives, many people are facing significant inflation.

According to the RentCafe study, higher-earning millennial renters preferred smaller cities (populations under 300,000), which are popular among first-time purchasers. The survey found that 11 of the top 15 cities in rental application growth were small, three were medium-sized (population 300,000 to 600,000), and only one was huge. In Macon, Ga., where there are 153,000 people, the biggest year-over-year increase in rental applications was 83 percent.

RentCafe evaluated 5.9 million rental applications from RentGrow, Inc., encompassing approximately 40,000 apartment communities, to arrive at its results. The study’s chart this week shows the 15 cities where applications from higher-earning millennials increased the most.

Do millennials prefer to rent rather than buy?

Around 34% want to remain tenants because they value the flexibility that renting gives, while 32% say they don’t want to deal with maintenance responsibilities or costs. Furthermore, 21% of millennials believe that purchasing a home is a dangerous investment.

Why are millennials renting rather than buying?

According to Lisa K. Lippman, a real estate broker with Brown Harris Stevens in New York, “younger professionals are often income rich but liquid asset poor.” As a result, renting allows people to live at a level of living commensurate with their income without having to put down a hefty down payment on a home.

What do millennials look for in a rental property?

Pet-Friendly Apartments

Residential Complexes That Care About the Environment.

They use the Internet or text messaging to communicate with their landlord.

Payment Options that are Easy to Find

Within walking distance are banks, grocery stores, and bus stops.

Why will millennials never own a home?

While certain financial restraints persist—student debt and down payments, for example—social shifts in how young adults live have driven homeownership to new lows, and the average age of Millennials who remain at home has risen. Discrimination in mortgage lending is against the law.

How many millennials rent versus own their homes?

According to the 2021 Millennial Homeownership Report from the rental listing site, 18.2% of millennials who do not presently own homes plan to always rent in 2020, up from 12.3% in 2019 and 10.7% in 2018. Millennials are the largest group, with an age range of 24 to 39, according to the survey.