EP054: Why Millennials Aren't Buying Real Estate, and What That Means for You

As America’s largest living generation reaches adulthood, what are the implications on the economy?  How will real estate investing change in the near future? How can the decisions that Millennials make influence the future for buy and hold investors? If you’ve ever wondered about this topic, today’s show is for you.  

On this episode, I’m sharing what real estate magnate Sam Zell predicts for the future of the economy and real estate investing. I’ll also talk about how Millennials are changing the market for buy and hold investors. Don’t miss this episode of Investing in Real Estate!

More About This Show
Recently, I heard Sam Zell speak at an economic forum. He offered his perspective on the future of the economy and real estate investing. He also shed light on Millennials and the future of the real estate market.

Sam posits that Millennials are doing things a bit differently. They’re putting off marriage longer than their predecessors. Correspondingly, they aren’t having as many children as previous generations. Because of these lifestyle choices, they’re waiting years to buy their first home!

Older generations were quick to purchase a starter house, a small, modest single-family home. Millennials, however, are skipping this step altogether. They live in cities, and rent for many years before finally moving to the suburbs to purchase a larger, permanent home.

As buy and hold investors, this change is to our advantage. First of all, since Millennials aren’t buying homes, they’re renting! These are the types of rental properties that many of us purchase—single family homes in C class neighborhoods. Millennials who are not in the market to purchase a home are looking to rent these types of properties.

Additionally, because Millennials aren’t purchasing starter homes, new home construction companies have had to change their business model. They are no longer constructing small starter homes. Their properties are no longer competition for us.

On today’s show, I’ll speak more extensively on the ebb and flow of the economy, and what Sam Zell predicts for our near future. I'll explain how Millennials fit into the picture. I’ll also share why I continue to purchase buy and hold properties in a down economy! 

If you're ready to begin building a passive income through real estate,

We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.

On this episode you’ll learn:

  • How is rental real estate affected by a recession?
  • Which neighborhood classifications are largely protected from economic turmoil?
  • What is the single biggest difference between Millennials and Gen Xers?
  • What effect do Baby Boomers have on rental real estate?
  • And much more about real estate investing!

Episode Resources
Sam Zell
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