According to recent data, millennials are not a generation predisposed to living in rental housing. According to Mynd’s 2022 Consumer Insights Report, a subset of millennial and Gen Z buyers are interested in using homeownership to generate wealth, albeit they may not do so in the same ways as prior generations. The research details their entry strategy as follows:
Younger Americans aren’t as enthusiastic about the American Dream as their parents and grandparents were. More and more first-time homebuyers in the United States are putting their money into investment properties.
Some young homebuyers, rather than occupying the property themselves, are opting to rent it out. In some cases, this strategy
Why Younger Buyers Are Buying a Home To Use as a Rental
This tactic enables purchasers to stay put in their current area, be it a crowded city apartment or a beloved but out of reach neighborhood. Instead of giving up on the dream of house ownership altogether, they look for more inexpensive housing options and purchase properties to rent out.
You might say that they’re enjoying the best of both worlds. They buy a house in an area where they can afford to reside, and they do so at the location of their choice.
The plan is to build a source of passive income and spread their investments around. Simply put, they will be able to increase their wealth through the combination of a steady rental income and the appreciation of their home’s value.
Last but not least
Connect with a real estate agent to learn more about your alternatives and the neighborhoods that could have properties that meet what you’re looking for if you’re considering purchasing a property as an investment plan to increase your wealth.