Millennials in Real Estate Investing
According to an article by Real Estate Freedom, millennials are ready to leave the stock market behind and take on real estate.
In the article, ‘Millennials Crash Real Estate Investing Party (moving away from stocks and into tangible assets),’ it is stated that 85% of millennials thought that Real Estate was a good investment. Even though millennials would be more willing to invest in real estate than earlier generations, many do not have the money saved to allow them to do so. As millennials develop more in the work force and are able to begin saving money they will move in on the real estate investment market. Many are trying to do so now through online real estate investing platforms.
Millennials seem to be leaning toward investing in real estate more than the stock market because of the 2008 crash. Many saw the housing market bounce back, while the stock market struggled and seemed less reliable. Real estate is tangible and comes off as a more secure investment. Their instincts when it comes to real estate investing are correct. According to the S&P real estate greatly out preformed the stock market between the years of 2000 and 2016. People always need a place to live, but not everybody needs to invest in the stock market. Millennials see this and they see the stability that it can provide.
Once they get going, millennials will make a huge splash in the real estate market. Not only do they have the most interest in real estate investing, they are also the biggest generation and over 85% of millennial renter’s plan on buying a home one day. That means that around 50 million people will be looking for homes all over the country. This is great for real estate in all fields. Those selling real estate will have a lot of people to work with and those investing will have about 25% of the millennial generation that could live in their investments. That would be over 20 million people to rent turnkey houses who do not plan on buying their own homes. Millennials are coming into the housing market as older generations are downsizing and leaving it. They are the current renters and will be the next investors.
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