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One of the most noticeable real estate trends in recent years is the high demand for rental housing among millennials. The older generations prioritized buying homes as they considered it a basic necessity to possess a home of their own. However, a growing number of individuals in the millennial generation had been titling towards renting homes rather than buying one. This is because they considered rental accommodation to be much more affordable and flexible, allowing them to focus on their work and higher education. The trend is particularly noticeable in the corporate hubs, around which the demand for rental housing is very high among IT professionals.
However, this trend is now starting to reverse, with the percentage of end-users among property buyers suddenly rising. With the pandemic going on and work from home gaining importance, an increasing number of millennials are now starting to buy homes. People are once again starting to realize why owning a home is important, especially in terms of safety and privacy.
One of the main reasons why rental housing used to be affordable for the millennials is that there was a trend to share residential spaces. Many individuals would share a rental home with their friends or colleagues, thus reducing the cost burden. However, with social distancing becoming an absolute necessity, this is no longer an option. The need for personal space has grown as it offers higher safety and better sanitation.
Previously, whether the professionals lived in a rental space or their personal residences didn’t have a major impact on their work. However, most companies have now adopted the work-from-home technique. It isn’t easy to find a rental home at affordable rates where one can enjoy a good workplace-like ambiance. It becomes even more difficult when the home is shared with other tenants. Residing in one’s own home, an individual can make necessary modifications to arrange for a proper workspace. In response to a survey carried out by a leading real estate firm, a large number of people revealed that they would like to upgrade to a better home in order to enjoy a better WFH experience.
Earlier, the demand for homes among millennials in the age group between 25 years and 35 years was low as they found it difficult to afford a new home. However, with shared spaces no longer a viable option, renting homes has become expensive. Buying a home has become relatively cheaper during the pandemic due to lower home loan interest rates, stamp duty charges, and special offers by developers. Moreover, the millennials in this age group used to switch jobs often, which required them to move from one place to another. With WFH becoming a trend, this would no longer be necessary. It is expected that the demand for homes among millennial end-users would continue to grow.
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