Millennials were born in the 1980s or 1990s, also known as ‘Gen Y.’ They would be approximately 26-41 years of age in 2022. Homeownership rates for millennials are lower than average. Rental costs have skyrocketed along with the cost of living expenses in many major cities across the United States. Millennials now number over 72 million people, outpacing the growth of other groups like Baby Boomers. From wars to big recessions, this group has seen it all. Traditional home ownership seems to elude this generation but modular home ownership is on the rise. This could be an answer to the question many millennials are asking themselves about whether home ownership is in their future.
In 2020, millennials made up a large portion of eligible homeowners but less than 50 percent owned their own homes. Every generation seems to be struggling to find the best pathway to home ownership. In a study released around Millennial home ownership, they are attracted to cities for work, to play, and even to build families. Affordability is a challenge due to rising costs in cities but a small percentage are still opting to live with family or rent with a group of friends. Savings have dwindled along with the lack of increased wages to keep pace with the cost of living. This widening gap is growing but mod home ownership presents some great opportunities if millennials struggle to buy homes.
Mod Home Ownership
Manufactured, or mod, homes are rising in popularity. Young adults to retirees are wanting in on a great opportunity to purchase an affordable home in their targeted city or town. Some key reasons mod home ownership appeal to millennials:
- Millennials usually have less credit or savings which makes a less expensive mod home a great starter or long-term investment
- Many mod homes are getting in on the eco-friendly building practices such as lower carbon footprint which environmentally conscious millennials love. Energy efficiency is also a factor as that can be built into many mod homes easier than retrofitting it into a traditional brick and mortar home
- Eco-friendly and otherwise, mod homes tend to come with fewer taxes, costs, and overall upkeep than traditional homes
- Mod homes make a great investment for single millennials are young families who want to look to the future
- Customizing a mod home is simpler than recreating what millennials want in a typical home. From floors to furniture and exteriors, many choices are available and prices are often lower than traditional homes with quicker turnaround times from purchase to move-in ready (if building from scratch)
In this modern economy, millennials are looking for flexibility, versatility, and durability. Those three components along with affordable housing options give mod home buying a better outlook than traditional homes. Even when the economy is struggling, mod homes offer a variety of options and financing to help millennials afford a home they will love and keep their dream alive of building a future for themselves and their family.