The millennial generation has become active toward home buying, but they have also been more interested in real estate. According to a NY Times interview with David Weliver, the founding editor of the Money Under 30 website, millennials have become keen on investments.
"It's one of the things I get questions on over and over again from people who read my blog 'I want to buy a rental …' " Weliver explained. "But I don't know how many people are actually making it work."
Millennial home sales depend on the market
Millennials now view rental properties as a viable financial option, particularly in expensive housing markets. They are also buying homes in more affordable markets to build equity and generate cash. In fact, many millennials are aiming to own property in these unaffordable home markets with the intention of selling the units within 7 to 8 year periods. This strategy enables them to generate value through appreciation and equity accumulation. In a separate interview with the New York Times, Brenton G. Hayden, founder of Renters' Warehouse, explained that there are several interests in the real estate market that attract millennials to making investments.
"Millennials are very active in the investment game, but alternative forms, not the traditional forms," Hayden stated.
Among these real estate interests are commercial real estate and various single and multi-family units.