Where Should You Rent to Own?
November 21, 2018 by Marty Orefice | Real Estate
One of the major factors to consider when purchasing a home is your location.
In fact, testing out a location is a big reason why many people choose to rent to own. Although rent to own is like a trial to home ownership, and it is easier to walk away from than a mortgage, you should aim to get it right on your first try to save time and money.
While there are many draws to living in the city, like proximity to work, shopping and entertainment; there are also drawbacks like noise and lack of space.
Younger People Prefer to Live in the City
A recent study published in the Journal of Planning Education and Research found that Millennials are 21 percent more likely to purchase homes near the city than Gen X. The researchers behind Millennial First-Time Homebuyers and Locations analyzed home purchases made by Gen X and Millennials between 2000 and 2016 to come to this conclusion.
According to the U.S. Census Bureau, workers spent 26.9 minutes commuting to work each way. That’s the equivalent of 9.75 days per year traveling to and from work. Shaving just 5 minutes off of your commute each way gives you back 1.8 days each year. It makes sense that someone in any age group would be interested in living as close to work as possible to minimize that lost time.
You should also consider walkability. When a person walks to work it helps the environment, their health and their bank account.
As rideshare technology continues to gain preeminence, many people don’t feel the need to have a car at all. If you can walk to work for your daily needs and take a rideshare for farther destinations, the importance of owning a car, paying car insurance and buying gas dwindles.
A 2015 survey from the National Association of Realtors found that millennials prefer walking over driving more than any other generation does. Seventy-nine percent of millennial home buyers place importance on living within walking distance of places.
Why Do Older People Prefer the Suburbs?
A big factor to consider is that the people analyzed in this survey are in different stages of life. Millennials aren’t yet at the stage of life where they have a family, while people who are a part of Gen X are.
People in Generation X are currently between 35 and 55; however, when this survey began, Generation X was between 17 and 37. Millennials were only beginning to purchase homes in the later part of the study. At the conclusion of the study, the oldest Millennials were 33 and the youngest ones were in their 20s, but at the start, the youngest Millennials were 4 years old.
The average age of new mothers is 26, according to the New York Times. That’s to say, that during the 16-years analyzed, the oldest Millennials weren’t commonly having kids for the first 10 years of it, and that’s just the oldest ones!
Whereas, Generation X was in a key age range for childbirth throughout the entirety of the study. More so, any Gen Xers already had kids when the study began and were likely to be growing their families and, in turn, moving away from the cities to purchase bigger homes in better school districts.
There’s not likely to be larger-scale homes in the middle of downtown.
Additionally, families with newborn children are in a stage where every moment of rest is precious. It’s often better to be far away from congested city centers were loud music, police cars and ambulances are likely to wake them and their children during coveted sleep time.
Where Should You Lease-Option
You should test it out with a lease-option. While this article describes the trends within generations, it cannot account for your individual preferences.
Maybe you’re a Millennial that values having a quiet place to live and a large backyard for your dog. You could be a Baby Boomer who really cares about the environment and wants to avoid driving as much as possible.
Regardless, if you’re a first time home buyer, try renting to own before you buy. There’s no better way to learn your preferences than by living and learning.