Why Do Generation Y Prefer Renting Rather Than Buying?

Today’s younger generation or Generation Y craves to be free, independent and a maverick. They adore living their life according to their desires. Their thought process is poles apart from what the older generation has.  

Take the example of renting or owning a house. The older generation used to think that buying a home and getting settled was the goal of one’s life. But, today’s Generation Y believe otherwise.  

They prefer to rent a house rather than buy one. But, why so?  

The following points may be the probable grounds for renting a house. 

1. Affordable 

Renting a room is way much more affordable than buying one. As they are still in college or have just started earning, the source of their income is minimum. So if they prefer to buy a house, they will have to take up a loan, as the price of the rooms has skyrocketed. Loans aren’t cheap. They come with heavy interests. Plus, every month EMI has to be paid without fail or else additional interests are charged. Thus, this becomes unmanageable to the ones who have less income. 

For renting a room, one can compare the different options available. After comparing them, select the one that asks for a minimum deposit and rent amount, that one can easily manage or is within one’s budget.  

2. No Maintenance, Insurance, Or Property Tax. 

Owning a house can increase your expenses. The expenses include Property Tax, Insurance Premium and Maintenance Charges. The more big house you own, the more property tax you have to pay. The Premium of Property Insurance and its interest charges are high and out of budget for freshers. All the repairing charges come under Maintenance bills. As they are paid by the landlord, the tenant doesn't bother about them. 

3. Savings 

Gen Y doesn’t have to stress about all the miscellaneous expenses like maintenance, interests on loans, insurance premiums and other house pairing expenses. They will end up saving more of their income. 

4. Easy Movements 

Younger people hardly stay in one place for a long time. There can be many reasons for this. This generation is basically job-jumper. They love their freedom and don’t wish to be tied down to one place. It’s cherishing for them to explore new areas, cities or nations for new experiences and keep changing their jobs until they find the right one. Hence, they even keep changing their house if they get a new job far away from their current one.  

5. Don’t Care About The Status Symbol. 

Unlike the older generation who think owning a house is a status symbol, today’s generation prioritizes more on their comfort level and bonding with people. Since younger generations prefer renting a house, the business of the Storage Industry has boomed. As and when the rent agreement finishes, the tenants either shift to a new house or continue with the agreement for more time. If they decide to shift to a new locality, they opt for professional packers and movers or keep their stuff in a self-storage unit to cut down the shifting burden. 

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