The idea that real estate is a solid long-term investment is not a new one. And despite a major dip in the real estate market about ten years back, the market has recently picked up enough that many prospective home buyers have forgotten that it can go anywhere but up, up, up, in value.
But here’s a factoid that seems less tied to tradition: Wanting to buy a home not only to live in (preferably shielded by the rest of the world by a white picket fence), but to rent out to others is the preferred approach of most Millennials (ages 18-34).
Yes, we’re in the generation of high rent and Airbnbs, and Millennials are apparently ready to cash in, rather than continue paying out most of their own salaries.
This is according to NerdWallet’s 2018 Home Buyer Report, which specifically found that investment value was the top reason for wanting to buy a home (cited by 64% of those surveyed), and that Millennials are far more likely to want to own a home they can rent out than older generations (59% versus 42% of Gen Xers and 20% of baby boomers).
One has to assume that a lot of them are planning to share their space–a prospect that baby boomers like me can get grumpy at the very thought of. With national average rents of $1,420 per month, however, Millennials who haven’t opted to stay with mom and dad are probably all too accustomed to sharing living space, if not living in closets.
If they’re going to enter this part of the real estate market, however, they’ll need to learn a thing or two about things like lease and rental agreements, landlord liability, local Airbnb rules and restrictions, and much more. Fortunately, Nolo offers scads of free online information on landlord/tenant subjects.