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Ryan

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Millennials, Gen Zers Have Changed The Real Estate Landscape: How The...

According to the Urban Institute, in 2015 37% of millennials were homeowners, an 8% decrease from Gen Xers' and baby boomers' homeownership rate at the same age (25–34). Millennials And Gen Xers While demographic and lifestyle choices, as well as a desire for nonconformity, have contributed to the high rates of renting over owning among millennials, one of the main factors pricing millennials out of homebuying is, ironically, high rents. While baby boomers and Gen Xers saw homeownership as an opportunity to build wealth and as a place to settle down, millennials do not. Millennials are often unable to forgo renting in favor of homeownership, in part because of the high cost of living in the cities they choose to live, as well as the high debt load they carry following graduation. It is a double-edged sword in a manner of speaking: Low single-family housing supply is contributing to lower homeownership rates among millennials because developers did not see millennials demanding single-family homes. Changes Are Coming (Again) Although so much time and effort have been spent on understanding the millennial generation and their homebuying preferences, the market is on the cusp of yet another shift in homebuying trends as Generation Z (commonly defined as those born after 1995) prepares to enter the market and make their own mark. While millennials have suggested that developers and owners become more environmentally and ethically conscientious, it is Gen Z that is expected to enforce the ESG investment practices. It is important for property owners within the workforce housing space to familiarize themselves with their residents. Rather than assuming that what worked for one community will work for another, widen your outreach program to include roundtable discussions or focus groups that garner direct feedback from your residents. For now, millennials remain in the driver's seat, as they are currently the largest market and the right age to buy and rent homes.