5 Reasons Millennials Buy Houses

There are about 72 million millennials in the United States. If you're part of that generation and have considered purchasing a home, you're not alone. According to Zonda, 98% of millennials aspire to be homeowners at some point in their lives if they aren't already. But why is this so? There are several reasons why you would choose to become a homeowner. Here are some of the reasons why other millennials have made the same decision (see graph below):

According to Zonda's 6th annual millennial poll, this graph indicates why millennials are buying houses. Building equity, a change in life stage, needing stability, growing house values, and wanting to make somewhere completely their own are among the top reasons. Here's a closer look at each of them.

Building equity – Homeownership is a long-term investment that allows you to accumulate money, raise your net worth, and improve your financial stability. Aside from that, the most common option to house ownership is to rent. With rents rising so significantly over time, it may make sense to invest in your own equity rather than the equity of the person you're renting from.

A change in life stage – You're in your peak home-buying years as a millennial. That suggests you could be in need of greater room or a different place.

Stability or settling down – This might be having a profession or simply determining more concretely how you want your life to look and feel. As that concept becomes clearer, you may desire to create that lifestyle in a certain location and develop roots.

Rising home values – By purchasing a home, you are acquiring an asset that has historically increased in value over time. If you decide to relocate again, your house may have a better market value.

Wanting to make somewhere “mine” – By purchasing a home, you are acquiring an asset that has historically increased in value over time. If you decide to relocate again, your house may have a better market value.

Bottom Line

There are several compelling reasons why millennials are purchasing homes today. If you've considered becoming a homeowner and any of these reasons apply to you, work with a reputable real estate agent to explore your choices.