I thought that this was a very interesting article to read because most of us in class are seniors and are most likely start out by renting a place to live. The article talks about how there is a all time high of people that are renters that are content with living in a rental instead of owning there own house. Renting is a great option if you are just starting out and don't have the money to purchase a house or if your job requires you to move often because this eliminates the struggle of having to try to sell a house. The one thing that I don't really like about renting is your making a payment that is almost as much as a house payment but after 5 years you are not gaining an asset like you would by owning a house. it will be interesting to see if our generation is more favorable of renting or owning a home.
Link: http://www.cnbc.com/2017/04/12/renters-are-staying-put-heres-why.html
7 comments:
According to study, the drop in homeownership is largely due to delay in homebuying by the millennials, who have the lowest ownership rate of their age group in history. Becuase this group is not only burdened by student loan debt heavily, but they have also delayed life choices like marriage and parenthood, which are the primary motivations of homeownership.
I agree that eventually renters do accumulate enough in rent paid to have been able to afford a down payment on a house, which is interesting. However, I also think that the move towards being satisfied with renting an apartment is evidence of a large social shift in the way the new generation views success, and I'm curious to see exactly how this plays out in the housing market. Rented property requires much less maintenance (no incentives, like we've talked about in class), and can change hands very easily! Maybe these aspects are becoming more important to the millennials over other, more traditional characteristics of stability and long-term investment? Additionally, it seems like job insecurity would play a large role in choosing to rent over buying a house, although I don't think this would account for an all-of-a-sudden increase.
In my opinion, as a graduating senior and a struggling millennial I don't find renting a bad option to start out with. Would I want to rent for the rest of my life and never have the luxury of my own house as a personal asset, only time will tell, and the economy. I think renting is a great option as it allows you to spend money on other necessities and maybe even save. Renters are able to do this while they have a decent roof above their heads. With a house comes other expenses such as constant maintenance and even in five years I still think millennial given the constant state of the economy would not find it feasible to afford and maintain a house.
It seems as though this is the case in Columbus as everywhere you look there is a new multifamily complex being built. If this ends up being a phase, it will be interesting to see what this influx of new buildings will do to rent prices, as I would imagine Columbus is not alone.
I agree with Khadija that renting is not a bad option, especially straight out of college. Our generation is constantly on the move and rather mobile compared to other generations, so renting eliminates the problem of being tied down. Car leases have also increased in recent years giving millennials a greater sense of economic freedom, while also eliminating the need for a mortgage or loan.
I do think renting is a good short term investment for people like us. However, I do agree with you that it seems kind of counterproductive to make payments towards something that you will not own or gain in the future. I think as our generation ages, we will see this decrease and homeownership will rise again. But, we will have to wait and see.
Renting is not a good long-term investment. The monthly payments for rentals can be just as much, if not more than a average house payment. I believe that if one is going to make the monthly payment, they might as well pay to eventually own a house, rather than just put money in the property owners pockets. Renting is a great investment until one can afford to upgrade. Some people prefer to rent for various reasons and almost everyone will at some point in their life, so it will be interesting to see if this trend continues.
Post a Comment