It makes financial sense for Millennials to rent in Denver, according to industry experts, as renting provides flexibility for those who need to move for a new job, or buy a home.
Millennials are relatively slower to buy a home than were previous generations, yet real estate experts explain that that's not such a bad thing, especially when considering their local market. Harvard University instructor specializing in real estate Teo Nicolais explains, “The choice is more complex than people think,” adding that Millennials should rent in their 20s and 30s, and use the savings for purchasing a larger home in a better location in the future, The Denver Post reports.
In 2006, about half of 31 year olds owned their own homes. But in 2016, the age where half of adults owned their homes had risen to 36, according to Chris Porter, demographer with John Burns Real Estate Consulting. Several things are driving the five-year lag in ownership. Young adults shoulder a large portion of the massive $1.5 trillion in student loan debt that has accumulated in the United States. “It is getting harder for young people to dig out of that hole and save up for a downpayment,” said Myles Ma, editor at Policygenius Magazine in New York.
Advertisement
Related Stories
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds beach homes to be the most sought-after vacation-home type and that the investment potential of a second home is an important factor in the purchasing decision
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable