The American dream of owning a home appears to be on hold, as apartments with high-end amenities are growing in popularity among the millennial generation.
Post-recession Americans would rather rent apartments than buy new houses, says The New York Times in a recent article, noting that there has been a sharp rise in apartment building construction following the housing crisis.
“Young adults who would have been prime candidates for first-time home ownership are busy delaying everything that has to do with becoming a grown-up,” The New York Times says. “Many even still live at home, but some data shows they are slowly beginning to branch out and find their own lodgings — in rental apartments.”
Apartments are attracting today’s young person with features such as wine tastings, Zumba classes and celebrity chefs.
Economists say many potential home buyers can’t afford a down payment because the recession forced them to tap into their savings. Others have credit stains from foreclosures that will keep them out of the mortgage market for several years.
But what happens to those apartment buildings once millennials do begin to buy homes remains to be seen.
“It’s tempting to envision ghost towns of metal and ipe wood structures with tumbleweeds blowing through the lobbies,” The New York Times says. “But I’m sure developers will rehabilitate them for a new demographic looking for a renter’s lifestyle.”
Read the article here.
Written by Cassandra Dowell