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Orlando Millennial’s Continue to Rent


Many have blamed Millennial’s (those born between the early 1980s and early 2000s) for the decline in the home ownership rate. Economists have cited student loan debt as one of the major limits keeping Millennial’s from buying homes.

Some believe that the effect of student debt is overblown. A report by Goldman Sachs found that student debt had to exceed $50,000 and 5% of income to have a significant impact on home ownership.  The average debtor with an undergraduate degree has $30,000 worth of debt.

Owning a home hinders mobility, restricting job seekers to a single location. Millennial’s are pausing their household formations and home ownership until they become more confident about their future.

Today, most Millennial’s are renters, and rents are up 20% over the past five years.  High rent is preventing Millennial’s who otherwise would be able to afford a mortgage from saving to purchase a home.

Generation X

Gen X, born between 1965 and 1984, primarily drove the home ownership rate that peaked in 2004. Those were the days of easy-to-get mortgages to buy often over priced homes. Many Gen-Xes wound up underwater on their mortgages when the housing bubble burst.

This harmed Gen X’s where last year, the home ownership rate for 35 to 44year-olds dropped to a 30year low, 58.5%.

Losing a home to a short sale or foreclosure takes anyone years to rebuild their credit. This explains why the number of renters aged 30 to 49 has climbed 20% to 18 million over the past decade.

Baby Boomers

In America, everyday there are between 8,000 and 10,000 Baby Boomers (those born between 1946 and 1964) reaching age 65. Most Boomers were not able to save enough for their retirement. Sadly, soMillennial's renter homeownerme Boomers have been forced to sell their homes to help finance their retirement years.Millennial's looking to rent

In 2015, home ownership levels were down among all ages of the Boomer group. Apparently, many Boomers are just giving up on home ownership.

A study by Harvard University, reported that the number of renter older than 50, has jumped 33% to 15 million in the past decade.  These older renters account for more than half of the total renter growth.  Understandably, some older renters are choosing low maintenance apartments. While others are moving into retirement communities.


In Summary, Millennial’s, will be a strong part of the rental market as rising rent costs and student loan payments prevent them from saving for a home.  Over half of Millennial’s are still in their teens.  Therefore, it is likely that the number of new renters will continue to increase. The pursuit of higher education and career advancement, may also delay home ownership for this generation.  They are delaying marriage and household formations due to economic uncertainty.

Many Gen-Xes are unable to buy a new home after suffering from the housing bubble. Baby Boomers with changing housing needs are moving to rental housing and retirement communities.

Given these facts, it is likely that home ownership rates will continue to decline and rental demand will continue to grow stronger.  This makes it a good time for investors to buy investment properties.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

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