Learn how the new generation of renters creates a demand for real estate and why you should invest in owning rentals with this video.
We will discuss how the landlords can take advantage of this opportunity.
Transcript:
Chris Bounds 00:12
Every generation since the Boomers has delayed buying longer than previous. Gen X delayed longer than boomers, millennials longer than Gen X. It’s expected that Gen Z is going to wait even longer than millennials. Now, millennials were in a- I don’t identify as a millennial, but I guess I am a legal standpoint. There’s a couple different factors there. The way the housing crisis depending on where, what, how old you were when that happened.
It probably freaked you out a little bit. The younger part and the younger sector of millennials waited a lot longer than anyone else. And then too, because of platforms like Airbnb and now remote working environments being more commonplace, there’s going to be a larger percentage of folks that they’re going to be the lifetime renters, because they like the ability to work in Silicon Valley, but live in Austin during the summer or during the winter, and then go up to Colorado Springs in the summer and then maybe they want to live in Miami for a couple years, they can do that.
They can do that because they can just get short term rentals here and there and never have to own anything, have that nomadic life and still make good income. There’s gonna be in Brian Chesky, the CEO of Airbnb was talking about that growing percentage within their platform of users that are just choosing to live that nomadic lifestyle. I think you’re gonna have two major things happen here, you’re gonna have that will continue to grow, but it’ll still be relatively small.
You’re gonna have the affordability problem, which is a much bigger problem because home affordability has been mitigated due to low interest rates. It’s a lot easier to pay astronomical prices for houses if interest rates are two and a quarter percent. When they’re six, not so much. If you qualified for $300,000 house in January, like I don’t know the math out of my head, but you qualify for a much lower priced house today.
Therefore, you have to rent and it’s not necessarily, I don’t know if that’s good or bad for the overall economy. But if you’re a landlord, that’s good, because less buyers, more renters. That’s good. Last point I’ll make on here is Gen Z. They’re just starting to enter the marketplace. They represent 86 million Americans, and they’re the largest demographic that we have on record right now. The largest demographic we haven’t record with millennials being a short second is coming on to the housing market. They are going to be looking for homes most likely to rent and if you have a home and you got a home to offer them good quality housing, you can be either a landlord and you can take advantage of that. Couple that with low supply. What does that tell you? It’s gonna happen over overtime with housing prices.