You may be a few years removed from the millennial generation or perhaps you’re a millennial landlord with no student debt. Regardless, it can be easy to feel like the issue of student loan debt doesn’t relate to you, but the truth is it does. Millennials make up the primary renter base. 60% of rental applicants from 2011 – 2015 were all from millennials (Source).
What does this mean for you as a landlord?
More People Looking to Rent
Only ⅓ of millennials are homeowners. This leaves a large portion of a population on the hunt for a quality rental. The average millennial carries $31,000 in student loan debt, making it a challenge to get approved for a mortgage. If you are able to cater to what millennials are looking for, you’re in luck. Millennials tend to be very social and are looking for apartments or homes with large gathering spaces so they can entertain friends. They are also on the market for affordable homes so they can pay off their student debt. (Source)
Long Term Renters
Millennials are not only faced with difficulties securing a mortgage, they are also choosing to rent. This is great news for you. They appreciate the perceived freedom of renting, not having to bear the responsibility of fixing broken appliances and being able to live in a hip neighborhood. The millennial generation, in general, isn’t planning on buying homes anytime soon. (Source)
Due to rising rents and high student loan debt, the number of millennials living with a roommate has jumped from 5.4% in 2005 to 7.9% in 2015. That is a 39% increase in just 10 years! Be prepared for roommates renting out two bedroom apartments to become more the norm than the anomaly, especially in markets like the Denver metro area, where prices are still rising. (Source)
What have you observed about the student loan debt many millennials carry? Have you felt it affect your business? How so?
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