It’s official: Millennials, long considered a demographic prone to renting a place to live, are becoming homeowners.
A recent study from apartment search website and research blog RentCafe reveals that the generation transitioned from renter to owner, with 52% of millennials, born between 1981 and 1996, owning a home in 2022. Many cities in Florida saw a decrease in renters over the past five years, the report found, suggesting homeowners are choosing to settle down here.
The study analyzed 110 of the largest metro areas nationwide. Of those, nearly 30 areas more than doubled the number of millennial homeowners.
North Port in south Sarasota County was one of the top two metro areas nationwide where millennial homeownership increased dramatically over the past five years — at an increase of 804.4%. The majority, 70.9%, of millennials living in North Port, are homeowners, according to the study. Lakeland also made this list at No. 5, with Fort Myers No. 11.
The study suggests an increase in salary and moving back in with mom and dad during the pandemic boosted millennials' opportunities to save up for a home down payment. The generation’s median income in 2022 was $108,000, a 44% increase over five years earlier.
In addition, compared to baby boomers and Gen X in Tampa, the study found more millennials have seen homeownership growth over the last five years. Between 2017 and 2022, millennial homeownership in Tampa grew by 57%. Gen X grew by 12% and baby boomers increased by 1.8% during the same time period.
Staying above the national percentage, 58% of Tampa millennials are now homeowners. In addition, millennial renters dropped by 31%, the report found.
Still, millennials have a ways to catch up to older generations in homeownership: Gen X is up to 70% in Tampa with baby boomers coming in at 85%.
While the younger generation, Gen Z, is just now entering the workforce, 35% of them in Tampa are homeowners.
RentCafe compared the number of owner-occupied properties and households to renter households for each generation for its report, using the Integrated Public Use Microdata Series,which is part of the Institute for Social Research and Data Innovation at the University of Minnesota.
As an expert in real estate trends and demographic shifts, I can confidently delve into the insightful data provided by the recent study from RentCafe, shedding light on the evolving homeownership landscape among millennials. The evidence presented in the study offers a compelling narrative of how this generation, often associated with a preference for renting, is making significant strides in the realm of property ownership.
The study, which meticulously analyzed 110 of the largest metro areas across the United States, serves as a robust foundation for understanding the dynamics at play. Notably, the key finding of 52% of millennials owning homes in 2022 challenges preconceived notions about this generation's housing choices.
Cities in Florida emerge as focal points of this trend, with a notable decrease in renters over the past five years, indicating a preference for settling down and homeownership. The real standout is North Port in south Sarasota County, where millennial homeownership surged by an astonishing 804.4%, positioning it among the top two metro areas nationally for such a dramatic increase. In North Port, a staggering 70.9% of millennials are now homeowners, a statistic that underscores the magnitude of this shift.
The study attributes this transition to various factors, such as an increase in salary and a unique trend during the pandemic—millennials moving back in with their parents, enabling them to save for a home down payment. The generational median income for millennials in 2022, standing at $108,000, reflects a substantial 44% increase over the preceding five years, providing empirical evidence of improved financial capacity.
Comparative data with older generations in Tampa further strengthens the study's conclusions. Between 2017 and 2022, millennial homeownership in Tampa experienced a remarkable 57% growth, outpacing Gen X (12% growth) and baby boomers (1.8% growth) during the same period. The fact that 58% of Tampa millennials are now homeowners, coupled with a 31% decrease in millennial renters, reinforces the notion of a significant paradigm shift.
While the study paints an optimistic picture for millennials, it also acknowledges the gap between them and older generations in terms of homeownership. Gen X boasts a 70% homeownership rate in Tampa, and baby boomers lead at 85%. The report, therefore, provides a nuanced perspective on the progress made by millennials while highlighting the road ahead.
Finally, the methodology employed by RentCafe adds credibility to the findings. The use of the Integrated Public Use Microdata Series (IPUMS), a component of the Institute for Social Research and Data Innovation at the University of Minnesota, ensures a rigorous and reliable analysis of owner-occupied properties and households versus renter households for each generation. This meticulous approach enhances the study's trustworthiness and positions it as a valuable resource for understanding the evolving landscape of millennial homeownership.
