Should Millennials Rent or Buy Homes in Texas
2020 was a year of many significant events, including being a leap year. And leaped it did - onto a moving party train of sheer existentialism, and just like Noah, its gentle, guiding arms flocked us all right in, leaving no man behind. Choo-choo and it's clickety-clack into 2022.
- "Dear passengers, don’t forget your luggage; next stop - Texas." Having experienced "Existentialism -101" at full throttle, one simply must approach the housing subject in a Shakespearean manner: "To rent, or not to rent? To buy, or not to buy? That is the question." Should millennials rent or buy homes in Texas? Let's try to figure this one out together.
Millennials are a strange animal
Yes, they are. Millennials first encountered The Great Recession at a young age, which caused the real estate market to collapse (as most of them were too young to be considering buying a property, we can call it a silver lining). How about colossal student loan debts? Sign them up! It's true; previous generations had it a bit more easy. The job market was crumbling down; the future didn't look very bright. Now, there's looming inflation upon us. But, hey! Not all is doom and gloom; this is one of the twentieth century's finest generations - resourceful, intelligent, insightful, and, above all, it is full of are goal-getters. Now, do they prefer renting, or do they crave ownership?
A young man sitting on the roof's edge, contemplating the city before him, as it symbolizes "should millennials rent or buy homes in Texas."
Millennials VS. wanderlust
If a "home renting influencer" were an occupation, any millennial would likely be named CEO. Statistically speaking, millennials deeply approve of renting; 8 out of 10 millennials will prefer this lifestyle and will not be too keen on going house-hunting (in the role of a friend in need? absolutely). Is it in their gene code? Nope, the explanation is found in the empirical. Millennials tend to postpone marriages and have a family for myriad reasons, but mostly, they want to explore and know life before putting down their roots. And, just how smart is it to buy a home today, anyhow?
Millennials aren't exactly famous for enjoying traditional ways of living. White picket fence- 600+ square feet haven- lemonade and barbecue afternoons- Sunday golf portrait - rarely depicts that "millennial" essence. So, what are the finer things in life from their point of view?
Spare time - yes, please
Liabilities - please, don't
"Yes, I'll have a home to go, thank you."
Nobody loves the infinite loop of packing and unpacking; it's stress-inducing and requires a lot of pre-planning. But being a millennial nomad has its perks. You get to choose which neighborhood has your name on it out of all the hippest neighborhoods in the city. Not feeling it? On to the next one! So, should millennials rent or buy homes in Texas? It depends. Financial investment and long-term commitment should be a thorough process; everything needs to be taken into consideration prior to making your final decision.
What does buying a house mean?
An abundance of requirements. A good credit score is your prologue. Then you have your down payment, real estate commission fees, closing costs, homeowners’ insurance, and property taxes. The potential buyer should take their sweet time gathering all the crucial information before applying. Is it the right time? Equity? Housing bubble hour? Do I really need a 20% down payment to buy a home? - If you're renting, there's no need to ask any of these questions.
A man's hand holding a house-shaped keychain with dollar bills in the background.
Let the games begin
Peculiarly enough, the ratio is shifting, according to recent studies. Millennials may be late for the game, but they're still coming, so hold on to that seat at the stadium! When it comes to homeownership, there has been an increase in buyers under the age of 44; among those aged 35 and under - 36-36.5% just last year. As for the age group 35-44, it rose from 58.9% to 61.1% over time. Young people make up the largest percentage of potential buyers in the United States. Yet, again, when it comes to moving, which people are relocating more frequently, owners or renters? The answer to that question might be a no-brainer, but it's the reasons behind it that count.
Austin says YES
House-buying tide is up in Austin, Texas. The buyer's market window is officially open; the competition is low. Median home prices in Austin, TEXAS, reach around $390,000 at the moment. Home values have gone up noticeably in the past year, so they are expected to continue their rising trajectory. It simply means - if you were to buy a home in Austin, the chances are, you will see a return on your investment if you were to sell later on. Austin also says: "You might want to reconsider renting." The rent can get pretty steep in some neighborhoods (it could even cost you more than your monthly mortgage).
What about other popular cities in Texas? If you are thinking about purchasing a home in, let's say, Dallas/Fort Worth, median prices go from about $290,000 to $355,000. Houston? $260,000 to $310,000. San Antonio metro? Anywhere from $250,000 to $305,000. Do some home search; you might find what you're looking for.
“TEXAS” red neon sign
Where to buy, where to rent
When deciding between renting and homeownership, it is vital to see the big picture and find valid information. As of now, the market is favorable for buyers in Bexar and Harris counties. When it comes to renting, though, Denton, Tarrant, and Collin counties in North Texas, with Travis County joining them - that's where you'll find affordable, beautiful properties for rent.
What's it going to be, then?
Having a landlord is the best option for those who are reluctant to "roll up their sleeves" (just yet) or are tied down by a mortgage. Renting is for millennials who get excited about the X factor of tomorrow; (a miniature Peter Pan complex, but in the most endearing way). Homeownership is for millennials who are inclined to reach that point of tranquility in their life and enjoy that sweet smell of certainty.
So, should millennials rent or buy homes in Texas? You tell us. But, before you make your move, do thorough research on market conditions, and ask for professional advice. Good luck, cowboys and cowgirls!