Born between the early 80s and the late 90s, the millennial generation is the largest living generation today, clearly beating the baby boomers. This generation also has a lot of influence on various businesses as well as market trends.
Interestingly, this new generation has brought a lot of change in the existing value and culture. All the traditional norms like marrying at a particular age, having children, fixed retirement plans do not work for this group. One such change is that this generation is not too keen to own homes instead, they prefer to rent one.
There are several reasons for this mindset of the millennial, the nature of their job being one for which this generation seeks mobility and doesn’t want to be stuck to one geographic location.
Renting a house offers more flexibility for moving base. They also prefer staying close to the business districts on rent as apartments may turn out to be a bit costlier to buy.
The cost factor plays a very important role when deciding on rental living. Buying a home is four times costlier compared to renting a house. According to the present generation, shedding a significant amount in home loans or EMI is not practical.
Millennials also prefer staying near their workspaces to cut on commute time and improve their quality of life. With property prices increasing rapidly, renting a house is the only option that the new generation has.
According to research, the demand for renting a house in major cities like Bangalore, Mumbai, and Delhi is estimated to grow from 2.9 million to 4.4 million in 2022.
Renting over buying homes for millennials has given rise to an all-new concept of co-living spaces. Yes, you heard it right, first co-work, now co-live. Based on the plug and play model, co-living spaces help the residents share amenities like housekeeping, laundry, Wi-Fi, water, etc.
Co-living spaces also offer residents flexible lease terms along with benefits like water, gas, and electricity, making it a convenient option for Gen Y. Co-living spaces are working towards bringing in yet another revolution in the near future.
Renting homes is undoubtedly overpowering the entire concept of buying one for the present generation and maybe for the generations to come. The real estate industry should pull up its socks and be all ready and set to adjust to this new paradigm.