Tech-enabled real estate company Mynd has released the results of its 2022 Consumer Insights Report in collaboration with research firm Big Village. Examining 1,018 Americans’ perspectives on and attitudes toward real estate investing, homeownership, renting, and the current state of the economy, the survey found that younger generations are rethinking the connection between homeownership and the “American dream.”
While 78% of respondents still associate achieving the American dream with homeownership and 65% see it as a means of building intergenerational wealth, the perception of homeownership is changing among younger generations. Before buying a primary residence, or in lieu of, younger generations are buying investment properties; often separating where they choose to live from where they invest.
Of all respondents, 72% would consider buying a property in a different city or state than where they live. Of those who own an investment property, 19% choose to rent a primary residence.
“While the economy is in flux, single-family real estate remains a desirable asset class for long-term, sustainable wealth creation,” says Doug Brien, co-founder and CEO of Mynd. “It’s no wonder that during this economic inflection point, many folks are looking for ways to future-proof themselves.”
About two-thirds of millennials and Gen Z (68%) think that investing in real estate is a smart financial decision. And compared with baby boomers at 9% and Gen X at 27%, nearly half of millennials and Gen Z (43%) are considering buying an investment property.
Of the millennial and Gen Z respondents who do own properties, over half, or 55%, say that is has been difficult to find renters and 32% say that residents not being able to pay rent is one of their biggest concerns this year. Top concerns for this group also include repairs and maintenance, property damage, and extended periods of vacancy.
Findings also showed contrasting differences between the expectations of renters and property owners. Of self-managing owners, 91% say they care for their residents’ health and safety and 95% believe they are providing a safe and secure home for residents. However, only 47% of renters believe that their property owner or manager cares about their health and safety.
“When it comes to showing a commitment to renters’ well-being, even the most well-intentioned property owners seem to be missing the mark,” says Brien. “In the coming years, there’s a major opportunity for a new generation of SFR investors to close this gap and provide families with safe, happy homes—while also building long-term wealth.”
