Has the increased interest rates and higher home prices turned people away from purchasing a home? Most are saying NO to question, which is showing in the continuation of home sales.
There are several ways to combat higher prices and increased interest rates. Most millennials are learning how to have their money make even more money and create generational wealth.
Check out the video below for a detailed road map of how millennials and Gen Z are buying homes in the market today.
It turns out, millennials aren’t the renter generation after all. The 2022 Consumer Insights Report from Mynd says there’s a portion of millennial and Gen Z buyers who are pursuing homeownership as a way to build their wealth, but it may not be exactly the way previous generations have done it. The study explains how they’re breaking into the market:
“. . . younger generations of Americans are not buying into that dream in the same way that older generations have. A growing number of Americans are choosing to make their first real estate purchase as an investment property.”
Instead of buying a home and moving into it themselves, some young buyers are purchasing a home so they can use it as a rental. This tactic may be gaining popularity, at least in part, because of the affordability challenges brought about by today’s higher mortgage rates. The report above mentions how many people in this group are considering this approach. It says:
“Almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.”
Why Younger Buyers Are Buying a Home To Use as a Rental
This strategy allows buyers to continue living in their current location, like the bustle of a city apartment or a neighborhood that they know and love, where they couldn’t afford to buy. But instead of giving up on the idea of owning a home, they buy a home in a more affordable area with the intention of renting it out.
In a way, they’re getting the best of both worlds. They live where they want, and they still own a home where they can afford it.
Their goal is to generate passive income and diversify their assets. It works like this: in addition to having a rental stream of income, the equity they build in their house will also help grow their net worth over time.
Bottom Line
If you’re thinking about buying a home as an investment strategy to build your wealth, let’s connect to explore your options and nearby areas that may have homes that fit what you’re looking for.
I’m Troy Sage a full time Realtor in the Frisco Texas area. Wether you’re buying to selling a home it’s my top priority to go above and beyond by doing Real Estate Differently. Our focus is on your wants and needs not selling! I’ve been in the business in multiple states for over 20 years and it’s my mission to help people achieve their real estate dreams. If you’re relocating to the Frisco Texas area, I can help you make the move as easily as possible. 🏡 View Frisco Area Homes
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