Homes and real estate are still seen as good investments by most Americans when compared with businesses, stocks, and bonds. But for Millennials, the view is even rosier.
Despite the fact that Millennials experienced the Great Recession right as they entered, or tried to enter the labor force and housing market, this generation has the largest share of Americans who believe buying a home and/or real estate is an “excellent” investment, according to a third quarter report from Zillow. Younger Millennials, aged 18 to 31 years old, are especially buoyant about real estate's investment prospects, with the highest "excellent" rating share of the study.
Respondents in markets that have experienced a stronger housing market rebound – places like Los Angeles, Miami, San Jose and Denver – are more optimistic about the investment potential of their homes. On the other side of the coin, respondents in markets that have had less-dramatic recoveries – including Chicago, Detroit, Philadelphia and St. Louis – are less optimistic. There are similar patterns when it comes to real estate investments more generally. Respondents in San Jose, Denver, Los Angeles, Dallas and Miami were most optimistic about real estate investments, while respondents in Chicago, St. Louis, Detroit and Philadelphia were least optimistic.