Homeownership is staying low, although it’s almost 10 years since the housing crash began. Apartment construction has boomed, somewhat stabilizing rental prices, while home prices climb. This shows that many people prefer renting homes in Colorado to buying homes. Why? People of all ages are now driven less by necessity and more by lifestyle choices. Here are some reasons given by renters why they choose to rent.
It’s Cheaper
A growing percentage of renters across all age groups believe it is cheaper to rent than to buy a home. By far the most popular reason renters gave for choosing to rent a home was that the monthly cost of renting is more affordable than buying. This is not only because of monthly rental prices, but because of the maintenance costs associated with owning a home.
Maintenance Cost and Hassle
Baby boomers are tired of fixing appliances, roofs, and fences. They like the idea of making 1 phone call for repairs, and as they age, those repairs may become more difficult to do themselves. Millennial renters say this is one of the main reasons they prefer renting. For millennials with active lifestyles, it’s not just the cost of maintenance that gets them down. Having fewer things to do around the house on the weekend can have a huge upside. Fun!
Flexibility
Many millennials prefer renting over buying because of the inherent freedom. They’re in college, and may be unsure where they’ll pursue their graduate degree, and want to be able to move quickly. They may be job exploring, so they want to have the option of a quick move if an offer comes from another city. Millennials tend to change jobs 3 times more often than their older counterparts and stay with the same employer for just 3 years on average, according to the U.S. Bureau of Labor Statistics. Renting also allows them to leave behind troublesome places, like bad neighborhoods. For seniors, they want to be able to move often, hassle free, to live near different family members. They want the option to try out different locations they’ve never been—like a year in Arizona, then a year in Florida. Buying and selling homes would make this too difficult. Renting, however, is perfect!
Exploring
Having recently moved and exploring new neighborhoods is a common reason for renting. Especially after moving to a new city, signing a short-term lease is a great way to get to know the neighborhoods where you may eventually buy without making that horrible mistake—home-buyer’s remorse.
Trendy Neighborhoods
Millennials like adventure, where a trendy neighborhood is within walking distance. When you live in a big city, pretty much the only way you’ll be able to afford the most fun or desirable neighborhoods is by renting. A downtown residence allows for close proximity to culture and nightlife. Baby boomers also want things within walking distance, like shops and the theatre, because they may not drive anymore. Senior communities give baby boomers what they need when they need it.
Love of Amenities
For the young, these range from perks like electric car charging ports, gyms, and fast Internet. For older people, having health care and people their own age around them ranks high. With the proper amenities, seniors can live independently as long as possible.
Tap Home Equity
Seniors who sell their homes and become renters can add that home equity to their retirement nest egg, allowing travel and adventurous options otherwise not available to them.
Upsizing and Downsizing
In retirement, a house with several bedrooms and a big yard may not be ideal. In fact, stairs to climb and a yard that needs mowing can become a significant liability. Renting allows the senior to downsize as often as they like. On the other hand, millennials can increase the size of their home as their family grows.
No Down Payment
Although not having down payment money used to be the most prevalent reason for renting, now only about 1 in 10 say their reason for renting is lack of a downpayment or inability to be approved for a mortgage. Some quoted student debt as the culprit.
All Seasons is Here For You!
There are obviously many advantages to renting a home in Colorado. Why spend your weekends fixing appliances, when you could be skiing or hiking in the mountains? When you’re ready to rent your home, call All Seasons at: (719) 632-3368. We’ll make sure you find the size of house you need in just the right neighborhood. That’s what we do! Additionally, this could mean that there’s never a time like the present to purchase an investment property or turn your existing home into an investment property. To discuss further, please contact Matt at: matt@all-seasons.com or (719) 387-4144. Some of the information in this blog was taken from these sites. You might want to check them out, too! https://hub.realtor.com/real-estate-news-advice-realtor-com-real-estate-news-advice-realtor-com/more-people-think-renting-is-a-better-deal-than-buying-2https://www.forbes.com/sites/trulia/2014/10/07/why-millennials-love-renting/https://money.usnews.com/money/retirement/articles/2013/11/11/10-reasons-to-become-a-renter-in-retirement
