House Buying Tips for Young Americans Wanting Their Dream Home!

It turns out that millennials aren't the renter generation after all. According to Mynd's 2022 Consumer Insights Report, a portion of millennial and Gen Z buyers are pursuing homeownership as a way to build wealth, but it may not be exactly the way previous generations did it. The study explains how they're breaking into the market:

“. . . younger generations of Americans are not buying into that dream in the same way that older generations have. A growing number of Americans are choosing to make their first real estate purchase as an investment property.”

“Almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.”

Why Younger Buyers Are Buying a Home To Use as a Rental?

This strategy allows buyers to stay in their current location, such as the hustle and bustle of a city apartment or a neighborhood they know and love, where they couldn't afford to buy. Instead of abandoning their dream of home ownership, they purchase a home in a more affordable area with the intention of renting it out.

In some ways, they have the best of both worlds. They live where they want, and they can still afford to own a home.

Their goal is to diversify their assets and generate passive income. It works like this: in addition to generating rental income, the equity they build in their home will help them increase their net worth over time.

Bottom Line

If you're considering buying a home as an investment strategy to build your wealth, let's talk about your options and nearby areas that might have homes that fit what you're looking for.