A recent factor playing into buyer’s choosing the right home to purchase is rental potential. 42% of Gen Z and 35% of millenials say the ability to rent out the home they buy and have an additional income stream is extremely important to them. On the weighted scale of importance, this was the same level of importance that they place on smart home features
As baby boomers were polled, only 8% felt the ability to rent out their home now or in the future was very important to them. The number dropped even more with the silent generation (75 and up) to 5%
This can be due to several factors:
- Affordability / Money – Home prices have increased much faster than incomes. Many younger buyer also have student loan debt which eats into their monthly budget as well. It’s quite common that rental their home out now or in the future is a means of financial survival until their income(s) increase and they are able to pay off their student loan etc.
- Sharing Culture – The younger generation(s) are much more or a sharing culture. The boomers and gen x were taught to be financially successful more independently than the younger generations. It’s a much more financially collaborative generation and sharing is the norm. Look at services like Uber Ride sharing, down town scooter sharing, and the like.
- More Mobility – It was not uncommon for boomers to work for the same company their entire career, and live in the same town as well. Nowadays, many younger people don’t expect to be at the same place of employment even several years from now. There is a societal push in the millennial generation to place more value on experiences rather than possessions. So, many like to know if they want to take advantage of an opportunity elsewhere, they are not “tied down” due to the home. Instead, they want to feel more flexible in that they could rent out their home if they took an unexpected opportunity elsewhere.
Because my team and I not only help people buy and sell homes, but also do property management, we are able to provide our home buyers with rental analysis’ on homes they are considering. This helps them know the real rental potential and we can help them make the right decision. This ensures they not only get a home they like…but one that has the rental potential they are looking for!
If you are someone you know is looking to purchase a home, please give me a shout with their name and contact info. I would love to help them navigate the process and make a smart purchase!