Why Millennials Are Choosing Rented Home Over Starter Homes?

Starter homes were the best way in adulthood to stop spending money on monthly rent, build equity, and save money for a bigger dream home.

According to a recent report by Business Insider reveals the fact that millennials don’t see starter homes as a good investment. A study executed by Value Insured in 2018 shows that 61% of millennials consider than to renting, that’s a fall of 22% since 2016.

Now only 38% of millennials think buying a house is a good investment because they assume home prices are too high.

Most of the millennials are skipping starter homes entirely. Starter homes do not guarantee building equity, and even they are not affordable sometimes. They are 39% more expensive than they were 40 years ago.

Also, switching jobs making millennials sell their homes before any equity builds is common. Sometimes after buying a home, the repair costs can be challenging too.