If the American dream was to marry, have kids and buy a house, the millennial generation might have changed that, making leasing the new American dream. Millennials (born anywhere between 1981 and 1996) are gutsy, confident, and ambitious. They’re unafraid to question things, which is maybe why their technical term is Generation Y. This group goes all the way out to achieve their goals. Most of them have been surrounded by technology all their lives, so you’ll most definitely also find them tech-savvy.
On the other hand, they’ve often been given the bad rap as the pampered generation by being labeled as lazy, uncooperative, and the ones who ruined everything from fashion to music to just about anything else. But we see that nothing is ruined, they’ve just changed things around. Millennials are renting much more than previous generations.
Their definition of success has changed. For them, it’s not necessarily about getting married, settling down, having a kid or two and buying a house. Though it’s part of the plan for many of them, it’s not a priority during their young age, if it’s a priority at all. As they redefine marriage and career and enjoy all the choices that come their way, they also want to extend their freedom into where to live and for Gen Y, leasing just might be the new buying.
Marriage is in the plan, but not early on. Most millennials are not marrying at a young age. The average age for marriage is 29.2 for women and 30.9 for men, as compared to the 1960s generation where the average age for men and women was 23 and 21, respectively. Gen Y doesn’t see a need to purchase a home as long as they’re not married. They can have more important things to pay for than mortgages, property taxes, or home insurance. They might have student loans to pay off or just want to do something more beneficial for them with their money.
Financial reasons can be a big deciding factor between leasing and buying, but they’re not the only factor. Leasing suits the lifestyle of Gen Y and provides them the freedom to go and come as they please, travel, and the freedom to move houses as they choose. This is regardless of being married or not.
Millennials are also characterized by wanting sleek and stylish homes in eco-friendly areas like Washington. Professionals at The Vintage have modern and spacious apartments in the heart of Washington’s most desirable neighborhoods. Some of these housings put you right between an exciting and convenient lifestyle of the city, while also being near a relaxing and charming suburban lifestyle. You can choose from studio, one, two, or three-bedroom apartments, and enjoy the amenities which also suit millennials, such as 24-hour gyms, and lounging areas.
There’s no indication that millennials plan to exchange their leased, stylish homes for a bought house anytime too soon, since they’re also wary of the hidden costs of house ownership.
It’s also important to mention that Gen Y doesn’t stay in the same job till their last breath as older generations have done. They are keen to explore all their options and don’t mind jumping around from job to job till they find the one that suits them. They tend to work for the same company for fewer years which makes job hunting in other states, districts, and countries an option, and that you simply can’t do if you’re tied down to one house with payments on it.
It’s not that millennials are irresponsible, as some other generations accuse them of, but they focus their responsibility on things more important to them and for their career. These things are more important than plumbing, or mowing the lawn, which doesn’t suit everyone. They don’t want to spend their time or energy on these things while they’re young. They’d much rather have someone else take care of household jobs, which makes leasing even more attractive and much more affordable. A lot of money goes into the repairs and maintenance of a house, so it’s understandable that Gen Y simply doesn’t have the money for that yet.
It’s estimated that you would have to save for an entire decade to just pay a 20% down payment on a house. But even for the millennials who can afford that, leasing is a choice they make consciously because it suits them and how they want to live, as they’re busy redefining the world. The need to own a house is simply just no longer there.