A recent article in the Austin American Statesman about home buying habits of millennials puts an exclamation mark behind the statement that owning Austin area rent property is a good idea.  The article stated that a number of factors enter into the picture as to why millennials aren’t buying houses in similar form as their parents. These factors include the product.  It seems that builders are building most homes to meet the need of baby boomers, which in turn means that these homes are larger with more bells and whistles, and not a starter homes which are smaller and more austere.  So the baby boomer homes are more expensive which in turn requires a larger down payment.  One source stated that entry level homes are about 20% of the new home inventory compared to 30% in the past.  Millennials are delaying marrying which in turn means that there isn’t need to buy a home much less a large home.  Millennials instead are choosing or out of necessity, staying with their parents longer or are in roommate type households, which in turn means that there is even less to build entry level homes.  And lastly, millennials are leaving college loaded with debt which means that there is less desire on their part to add to the debt by having a mortgage.


So this means that for those of us that own Austin area residential rentals that the future looks both bright and profitable.  The demographic stated in the article won’t be changing much in the near future.  Our area continues to attract jobs and those that seek them, and millennials have to live in something, so why not one of our fantastic rentals?


Rick Ebert / Austin, Texas / 11 March 16