The American Dream of owning your own home is becoming a thing of the past. Homes are becoming less affordable as salaries are failing to keep up with rising prices, and many Millennials who were burned during the housing crisis are unlikely to give homeownership another shot anytime soon. Even young families who made it through the housing crisis on their feet are often choosing to rent rather than buy thanks to the flexibility afforded by renting.
According to U.S. Census data, about 31% of people between the ages of 18 and 34 — also known as Millennials — lived with their parents for some part of 2013, and 44% of Millennials did not have gainful employment last year, Global Newswire reports. The housing crisis has been harder on Millennials than any other age group because companies simply have not had room for people without experience. As a result, many young professionals who would usually be getting ready to buy their first home right about now are instead steeped with student loan debt and unable to find a job.
Thankfully, the economy is turning back around and more Millennials are finding jobs. But these young folks are not interested in purchasing a new home once they get out of mom and dad’s basement. Instead, they’re looking to rent.
Part of the reason for this is that Millennials have been jaded by the instability of recent years, causing them to preferred the flexibility and minimal commitment of renting a home versus buying. Another major factor is the fact that Millennials were more likely to go into foreclosure during the housing crisis than any other age group. Young professionals who ended up underwater just years or months after buying their first homes are not interested in buying another house anytime soon.
As a result, fewer people own homes now than have in the last 20 years. Young professionals are looking for apartments and rental homes around major cities, which is driving up demand in these areas. Oddly enough, this has created a situation in which home prices and rent prices are both on the rise. Rent is going up because demand is going up, and home prices are increasing due to the still low interest rates, low supply levels, and demand from investors and financially secure buyers.
At ZINC Financial, we believe that the rise in renting combined with increasing rent prices and home prices makes now an ideal time to consider rental real estate investing. With buy and hold real estate, you can make money every month off of your rental income and make anywhere from 5% to 20% off of your property investment in a few years time. People are desperate for great places to live in the best housing markets, pushing vacancy rates for rental properties down to historic lows. Take advantage of this unique situation by calling ZINC Financial today at 559.326.2509 to learn more about our buy and hold loans. We’re currently offering rates as low as 7.49% because we truly believe that now is the perfect time to invest.