Generation Rent. The term has become more and more prominent throughout the real estate industry, and the reason is because the term can be applied to more and more of today’s twenty-something’s who are just not ready to settle down. We see it to some degree in communities all across the country – the younger generation seems to be sticking to renting instead of even considering purchasing a home of their own.
Taking a closer look at the circumstances, we’re able to understand why many young people are falling into the generation rent realm. For starters, the job market and economy is a huge factor in the inability to consider buying a home – more and more college graduates are unable to find a job that would grant them the freedom to put a down payment on a house.
Another huge factor is the mentality of young Americans today. The American dream is no longer the same as it used to be. Young adults are found dreaming less about a white picket fence around their pristine home for them and their family, and lean more towards an apartment with less long term commitment, less travel time to work, and a more flexible lifestyle. ![]()
And more importantly, renter cities are popping up all over the place. Instead of having to go into the major cities to find something worth your time to rent, people are now able to find apartment communities and cheap house rentals in most cities regardless of size. The option to rent is everywhere, and the younger generation is seizing the opportunity.
The real estate industry has a lot to say on the topic. But I agree with one Multifamily Executive article which states “’The notion that the next generation won’t buy a home is not realistic, Nadji says. ‘At some point, rents will go up, and home prices will stay down, and [that] should compel home buying by 2014.’” This generation will eventually take a turn towards settling down, it just may be later than we’ve typically expected from previous generations. For now, apartment communities and landlords alike should enjoy the increase in rentals while it lasts!
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