Why Millennials Are Investing Real Estate


There has been a substantial increase in the number of Millennials – individuals born after 1980 – who are investing in real estate. This has some of us questioning why and how? It also has many of us discovering the methods that enable Millennials to invest, and the new subsequent opportunities for all people in the real estate industry.

Why Are Millennials Investing in Rental Properties?

Conceivably, for the Baby Boomers – individuals born between the years 1946 and 1964 – it made sense to purchase real estate while in their twenties because of the normal age of marriage, steady job market, and overall, better financial circumstances compared to persons the same age today.

People in their twenties these days usually respond to the concept of buying with “why don’t I just rent?” However, there is a budding population of Millennials who are not interested in renting and have found out how to invest in real estate and earn its rewards.

In spite of having more loans, higher levels of unemployment, and a smaller amount of wealth than their parents and grandparents, Millennials have one big advantage: They witnessed the most recent recession and its after-effects, such as impaired retirement.

Not possessing wealth at a young age and faced with the possibility of future financial uncertainty explains their curiosity in real estate investing. Millennials appreciate that with investing, comes supplementary monthly income and a guard against inflation.

Real estate investing rather than buying a home is actually a good choice for Millennials. It eliminates the obligation to a home, should they decide to move around for jobs.

Since most people are not settling down in a house until later on in their lives, they’re able to enjoy the flexibility. It also offers a jump start to earning money and paying off loans, because finding a job is necessitating more education, time, and money today.

Luckily for Millennials, they have not had to tolerate financial difficulties such as losing pensions or stock market investments, which affords some advantage for investing. But once again, if they have no money, how are they investing?

How Are They Doing It?

This generation is utilizing different methods for investing. There are those individuals who are able to locate well-paying jobs right after graduation and can produce a down payment in a short period of time.

On the other side of the equation, there are people who face challenges from low credit scores and sellers who are not willing to accept FHA loans. The best part of this generation tapping into this industry is the emergence of different options for everyone to consider.

Amongst these options are investing in real estate investment trusts (REITs), which is an organization that invests in income properties and possesses shares on stock exchanges that persons can buy. This gives them a chance to partake in different investments and a feasible way to get started. Regardless of the methods they use, the trend is clear, and Millennial investors are here to stay for the long-term.