Home ownership has long been considered a cornerstone of the American dream. However, that dream is increasingly out of reach for many millennials, who are saddled with student debt and facing higher housing costs. As a result, more and more higher-income millennials are opting to rent rather than buy a home. According to a new study from RentCafe, this demographic has seen a 20% rise in rental applications in 2021, more than any other buying-age cohort. The share of rental applications from individuals earning more than $50,000 is at its highest level in five years, 39%. For millennials specifically, the share of rental applicants who earn more than $50,000 is 43%, up from 36% in 2020. While renting may not be the ideal solution for everyone, it can provide flexibility and freedom that comes with not being tied down to one property.
This demographic is often looking for the same high-end amenities and features that are commonly found in luxury rentals. As a result, they are willing to pay top dollar for the right property. In addition, higher-income millennials tend to be more stable tenants, with fewer doing “damage” to the rental unit. For Idaho property management professionals, this trend represents an opportunity to provide quality homes and apartments for this growing demographic.