According to NerdWallet’s Millennials & Homebuying Study, the top 5 reasons young renters choose to own are:
1. To Have Control Over Their Living Space – 93%
Many Millennials who rent a home or apartment prior to buying their own homes, dream of the day that they will be able to paint the walls whatever color they’d like or renovate an outdated part of their living space. Many others who have waited to add a pet to their families daydream about the day that they’ll be able to go pick out their ‘furever’ friend. Owning your own home gives you the freedom to make those choices.
2. To Have a Sense of Privacy & Security – 90%
It is no surprise that having a place to call home, with all that means in comfort and security, is the #2 reason. As a homeowner, you have control over who has access to your home, and you are able to secure it how you see fit.
3. To Live in a Nicer Home – 81%
Similar to the #1 reason, when you purchase a home, you can choose to live in a nicer home or choose to renovate a home and restore its glory. Owning also allows you to accommodate your growing family or a family member who may need to move in.
4. To Feel Engaged in Their Community – 75%
Owning a home in a community is one of the major reasons why residents become more civically involved. The stakes are raised once your home value is directly tied to the neighborhood and community in which you live.
5. To Have Flexibility in Future Decisions – 53%
As we mentioned earlier, owning a home allows you to use your monthly housing cost as a savings account that can be borrowed against in the future. Having this option available during uncertain times is just one of many reasons why homeowners feel more secure in their homes.
“The majority of Millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons–including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.”
NAR’s Generational Study found that 84% of Millennials belive homeownership is a good financial investment, with 45% believing it is a better investment than the stock market.