Millennials aren't buying homes - good or bad?

[Tyler Erickson]

As many of us are aware, millennials are more apt to renting rather than buying real estate. They (we?) are replacing baby boomers at a rapid rate, and are right behind Generation Z... Of course, Generation Z still has a while to develop before they are able to buy real estate or rent, so in the very near future, Millennials are going to be the largest generational demographic. 

From CNBC: "The homeownership rate among millennials ages 25 to 34 is around 8 percentage points lower than Gen Xers and baby boomers was in the same age group."

The Urban Institute did a study and reported that Millennials getting married later and less often plays a major role, as well as Millennials typically deciding to rent in higher income areas instead of the poorer areas. High rent + single incomes + median credit score of 640 = less homeownership. 

As investors, does this information change your perspective on investing? Or have you implemented a plan to adapt and flow with the changing real estate market?

As a whole, to the more experienced and economics-minded investors, could lower homeownership lead to more instability in the market? 

As @J Scott likes to say, there are always ways to capitalize on changes in the real estate market... What are your methods? 

[Russell Gronsky]

@Jennifer McMurray, I agree with you about AirBnB being far from passive. I'm going to keep mine going for a little while longer but I am definitely not into it for the long haul. 

[Keith N.]

@Grant Rothenburger i agree. I’m 27 now and it seems this is the “tipping point” of where most of my friends either have bought a house, are actively trying to, or at least “want” to.

....

Also seems to be the point where most couples are actually “settling down” so that makes sense.

[Ronnie Fielder]

Originally posted by @Elbert D.:

buying homes?????Nahhhhh we dont do that. The thing to do is go to college and rack up debt. Not having a clue what we plan to do after we graduate. "We are going with the flow" In the meantime we are in college we are getting accustom to the "turn up" lifestyle gotta always go out every weekend and party right? This is afterall the thing to do in society right now...^__^ smoke and drink so much we arent able to function the next day. Then spend the next day sleeping/recovering from the night before.

Once we graduate we complain about the lack of jobs and how life sucks. In the meantime we are living with either family or friends or we are renting in one of the trendy areas of the city. ^__^ we have to always be in the know....ya know? Cant miss out on any event or concert that goes on.....

*end of sarcasm* sadly.....this is what most people do near my age.....

Elbert, you just fully described my sisters and cousins all still stuck in the "Chicago lifestyle."  Some have never even left the city due to this lifestyle.  It's sad, but all I can do is try to educate them on better ways of living; which they don't want to hear.

[Elbert D.]

Its whats being promoted in the society today. SMH. Keep you distracted with a bunch of foolish news. Keep you drugged up and never question anything. Its not just in Chicago but all over America. To be honest a lot of people just want the lifestyle of the wealthy/rich and not do the work......

[Steve Vaughan]

My last 3 single-fam sales were all to millenials. Their 1st purchase, owner-occupied.  Price point had something to do with it I'm sure.

1 listed, staged, retail-ready,  2 by owner and needing some work.

My area is about 25% Latino.  All 3 of mine were sold to Latino millenials.  Thought that was interesting.