According to the Census Bureau, millennials continue to be the largest renter group in the United States. Over 48% of millennials today are renters, resulting in 17.2 million millennial renters in the United States. Millennial homeownership rates have fallen 20% in the past ten years.
Slowest Transition to Homeownership
Millennials have had the slowest transition from renters to homeowners. By age 30, 42% of millennials owned their homes, compared to 48% of Gen Xers, and 51% of baby boomers.
A recent study by Apartment List showed that millennials have become more likely to say they will rent forever, almost doubling from 13% in 2010 to 24% in 2022. The significant jump in “forever renters” between 2019 and 2020 showed the immediate impact of the pandemic when an already-challenging housing market reached a new level of unaffordability.
Source: Apartment List
Why Millennials Continue to Rent
- High student loan debt: Many millennials have significant student loan debt, making it difficult to save for a down payment on a house. As a result, they may choose to rent instead of owning a home.
- Delayed marriage and family formation: Millennials get married and have children later in life compared to previous generations. This delay in family formation can lead to a preference for more flexible living arrangements, such as renting instead of owning.
- Urbanization and job mobility: Many millennials choose to live in urban areas where job opportunities are more plentiful. Renting allows them to live in areas with a high cost of living without committing to a long-term mortgage.
- Lifestyle preferences: Some millennials prefer the flexibility and convenience of renting. They may not want the responsibilities of owning a home, such as maintenance and repairs.
These statistics highlight the continued importance of multifamily housing. The demand for mortgage-free living is apparent, and Metonic is proud to provide it. Metonic owns over 10,400 apartment homes in five states and is currently under construction on nearly 900 more. To learn more about Metonic and our multifamily acquisition and development strategy, visit Metonic.net or email us at info@metonic.net.