Why Home Ownership Is the New Preferred Lifestyle of Millennials?

Are you one of them? Millennials are born between 1981 to 1996. Today, more than 400 million millennials are in India, which is even more than the USA's total population.

The largest millennial population is in India!

Millennials are about 34% of India's total population, and they are changing the dynamics of the real estate industry. Their spending habits have become an eye-opener due to the circumstances that occurred two years ago.

Our predictions say that millennials will play a significant role in driving residential sales throughout 2023 after years of overlooking the importance of investments and savings.

Millennials are reshaping the real estate sector.

Around 70% of millennials in India prefer buying over renting. There has been a great shift in the Indian perspective toward home ownership, with millennials rising as an influential demographic. Their impact on the residential market has become evident in driving the growth of the real estate industry. Speaking about numbers, as per a study, since the COVID-19 period, residential sales have risen by 51%. Additionally, easy access to home loans and finance options boosts the home-buying interest among aspiring homebuyers.

The desire for stability & security

Traveling back, when things normalized after the COVID-19 pandemic, some companies started operating from their offices. According to a survey, at that time, the supply of rental properties was already 17% less. As the working population returned, rental housing demand shot up by around 8.5%, and the average rent of homes increased by 13.5%. Such a massive impact on rent prices led to a change in the mindsets of many millennials, and they started preferring buying a home over renting.

Global studies have revealed a notable growth in millennials entering the home-buying market in 2022. We have observed that more than 60% of our clients are millennials who purchase homes from us.

Millennials are choosing luxury over anything else.

Homebuyers' preferences have changed significantly over the last few years. There was a period when not having a lift in the building was considered fine, but today, a lift has become a necessity. People are choosing luxury and comfort before everything, especially millennials aged between 30 and 40. Additionally, the flexibility to work from anywhere has curbed the importance of proximity to the workplace for young homebuyers. They are looking for homes with bigger carpet areas and all the lavish amenities at affordable prices, hence shifting their attention to the suburban areas. Overall, home buying has begun to make good sense to millennials as a tangible investment instead of a rental home.

Continuous growth in real estate prices is creating urgency.

We undoubtedly have multiple investment options, but real estate has proven to be one of the most profit-recurring assets. With such a high demand for real estate, it's no surprise that the prices will keep hiking. This is expected to persist over the next few years, as the residential sector is being driven by end-users rather than just investors. Nonetheless, until inflation stabilizes and the RBI reaches a decision in its monetary process, the mid-end and budget segment millennials will continue dominating real estate sales.

Homeownership is an emotion.

Millennials in their 30s are usually planning to settle and start their families and need a place to call their own home. There are many reasons why millennials are buying a home instead of renting. To name a few, homeownership creates a notion of safety and contentment. Rent is a monthly expense that does not result in the creation of physical property. You may need to relocate when you lease, which wastes money, time, and energy, but you don't have to keep moving when you have your own home. And above all, real estate is a secured investment with tax benefits, potential capital growth, and future appreciation.

Technology plays its bit!

After the pandemic, proptech (tech-enabled) firms have emerged as the real estate industry's saviors, who rowed the boat during the worldwide crisis. Proptech has been a key factor in convincing millennials to purchase homes at their fingertips. Thanks to technological advancements, we can provide easy access to property listings, pricing, virtual tours of properties, locations, and more to make the home-buying process stress-free

After looking into the above data points, it is not wrong to say millennials are accelerating the trend of home ownership while renting is taking a backstep!

The views and opinions stated in the content belong to Mukesh Mishra, the Co-Founder & Head of Sales at Homesfy.in