New surveys show that most of America's youngest adults – the millennials – plan on settling down and becoming homeowners someday. But for now, renting tends to fit their lifestyles.
Millennials, who range in age from roughly 18 to 34, are poised to overtake baby boomers as the largest generation in 2015, according to the Pew Research Center. As a result, the housing market is watching them carefully to provide the options they're seeking.
What many millennials say they want is housing that lets them be free to move around the country.
Many millennials maintaining mobility
In a new Rent.com survey of 1,000 millennials, 43 percent said they had moved away from their hometown or their college town. The main reasons for leaving after college graduation aren't too surprising: They were looking for a job or moving to get closer to a significant other.
About the same number of millennials – 44 percent – said they planned on moving again in the coming year, most often because they'd like a cheaper place.
Renting supports millennials' flexibility
Exactly half of millennials are renting a home, according to a new Urban Land Institute survey of nearly 1,300 young adults in this group. Seventy percent plan on owning a home by 2020, but for now, the main reason they find renting appealing is that management takes care of repairs and maintenance on the home.
Two other benefits of renting that millennials especially enjoy reflects their desire to stay mobile: They don't have a long-term commitment to remain in one place, allowing them flexibility in how long they stay in the home.
One element of the renting lifestyle that isn't so popular with millennials is renters insurance. Nearly 60 percent of them lack this important type of protection, even though millennials gather roughly $65,000 worth of goods during their first decade after college graduation, according to Enservio, a provider of insurance-related software and services.
However, you can look at the cost of this insurance as another benefit of renting instead of owning a home. Renters insurance may cost you only $12 per month, which is less than most people pay for homeowners insurance, according to SFGate.com.
Plus, if disaster strikes – such as a damaging storm or a burglary – renters insurance can help ensure that when you make your next move, your treasured belongings will be going with you.
Need renters insurance? Visit CoverHound to find options that meet your needs.
