Home ownership doesn’t make sense for millennials - Ahwatukee Foothills News: Real Estate

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Home ownership doesn’t make sense for millennials

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Posted: Saturday, June 14, 2014 4:47 pm

While the baby boomer generation dreamed of owning suburban homes behind white picket fences, a new study shows that this isn’t the reality for millennials.

A recent survey showed nearly 62 percent of millennials would rather rent then own in 2014 and of those individuals polled, two-thirds said they currently rent with family members or roommates.

Many people speculate that millennials are opting to rent rather than buy because of the state of the economy. Obviously, the economy plays a role but there are other factors believed to be contributing to the decline in home ownership amongst this demographic.

So, what might be contributing to millennials choice to rent instead of buy?

According to the Consumer Financial Protection Bureau, Americans owe roughly $1.4 trillion on school loans, 67 percent of it is owed by people younger than 40. This coupled with skyrocketing home values, hovering mortgage rates and median wages has left many millennials who would have bought homes living at home longer or choosing to rent.

Aside from debt, social and cultural factors are also to blame for the trend. Here are some of the things more millennials are considering.

Freedom

These days, being geographically flexible (taking freelance projects, short-term gigs and other job opportunities as they become available) may be one of the more valuable tools for earning a stable income. Younger people are more career conscious, spending more time and effort on being successful at a younger age.

Owning a house and being tied down could limit a millennial’s ability to advance their professional life. So, many millennials are content renting, allowing them to pick up and move across the country at the drop of the hat for a new job.

Housing preference

In the past, part of the “American Dream” meant owning your own house with four walls and a yard. Today, millennial’s are seeking different housing preferences than previous generations.

In fact, a recent study showed that nearly 60 percent of millennials prefer to be near shops, restaurants, offices, and transit.

Low maintenance

Let’s face it, the younger generation is on the go. Between multiple jobs, relationships and extracurricular activities, many of these people simply don’t have the time to commit to taking care of a home. If you choose to rent, you can decide how to approach maintenance, either doing it yourself or calling your landlord for maintenance issues or home improvements.

The mind set of this younger generation has certainly changed. While many continue to consider renting over buying, there are still those individuals who desire own their own house.

Not sure which option

is right for you?

Consider the following before making a decision.

• Budget. Whether you are looking to buy or rent, having the finances in place is crucial. Start saving early and think about the other financial obligations you have and if it would hinder you making your monthly payments.

• Location, location, location. There is a lot more that goes into finding a good home. Make sure to check what amenities are available and what’s nearby before making a final decision.

• Commitment. Both renting and buying a home require some type of commitment. Whether long or short term, considering your personal and professional situation before settling on the option that is best for you.

• Michael D’Elena is a real estate agent at HomeSmart - Elite Group and has been doing real estate in the Valley for five years.

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Keystone Montessori

[David Jolkovski/AFN]
Teacher Pily Pantoja helps Sarah Wang, 4, with the addition snake game at Keystone Montessori on Thursday, Sept. 4, 2014.

Keystone Montessori has come a long way since its founding in 1995. Back then it was operated out of the founder’s home before eventually moving on to rent rooms from Horizon Presbyterian Church. It was only in 2000 that they had gained a strong enough enrollment to move into the facility where they currently reside on Liberty Lane, just off Desert Foothills Parkway and across from the Ahwatukee Foothills Family YMCA.

The school services students as young as 18 years old, as part of their toddler program, and as old as ninth-graders. The current enrollment is around 320 students, who all have access to Spanish, music and arts programs in addition to the full Montessori curriculum.

“We provide an authentic Montessori education which focuses on the independence and whole development of the child, including academic as well as social and emotional growth,” said head of school Cindy Maschoff. “We want our students to become independent citizens of the world.”

The school will be taking the time to present the concept of Montessori education to the public Jan. 29 and 30. At the presentations the school will provide a clear understanding of what Montessori education looks like at each level of education. Those wanting to attend should plan on going to both meetings, with the Jan. 29 meeting going from 6-7 p.m. and the Jan. 30 meeting from 9 a.m. to 1 p.m. The meetings require attendees to RSVP, which can be done by emailing laura@keystonemontessori.com.

For more information, visit keystonemontessori.com.

• Compiled by James Gingerich.

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