More And More Millennials Would Rather Travel Than Buy A House
In the pilot for HBO’s Ballers, Dwayne ‘The Rock‘ Johnson’s character Spencer Strasmore gives some solid “free advice.” Spence tells some up and coming sports stars, “never buy a depreciating asset.” He then lists off cars, boats, and planes and tells his accolades to “lease” everything. While most of us probably will never own a plane, a lot of us will be told or have the desire to buy a house. Well, a house is (arguably) a depreciating asset. It falls apart, needing constant repairs and upgrades — which means a money drain. We’re not saying that physical property won’t appreciate and raise in value. But property is not a house — land is. And it seems millennials are getting wiser to this.
A new study by Realty Mogul looked closely at buying habits by age demo to see who’s buying what and where. According to their numbers, only 53 percent of millennials care about buying a house, leaving 47 percent of the coveted 18-34 demographic wanting more from life (and their money). This shores up other studies that show millennials are far more likely to spend their hard-earned money on travel or eating out or maybe just doing something rad they’ve never done before. After all, it’s their money to do with as they please.
The study pulls some numbers from the U.S. Census Bureau’s Housing and Vacancy Homeownership Report to see if millennials are putting their money where their mouths are. It holds up. Rental properties are experiencing a bit of a boom right now. “The massive millennial generation is the largest share of the American workforce and highly values rentals, which satisfy their desire to maintain a flexible lifestyle,”Jilliene Helman, CEO of RealtyMogul stated in a press release. Helman continues, “we’re even seeing an emerging demand among baby boomers, who are moving back into city centers from their homes in the suburbs.”
Now, before you go and buy a rental property in the city to rent to Boomers, remember you’re the one who’ll have to keep that shit up. Instead, maybe go check out a round-the-world ticket from one of the major airline loyalty groups. Because an investment in a trip like that (and yourself) will never depreciate.