Waiting to Buy Beneficial for Millennials
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.