When deciding to buy a home, people are presented with many different options. The type of home you buy depends on your needs, budget, and in many cases, the desired maintenance level. There is no right choice. They are all different paths to home ownership. For many millennials, their choice has been buying a condominium! In fact, Millennials are increasing the demand for condominiums.
According to CoreLogic,
“Last year about 43% of all condo home-purchase mortgage applications were submitted by FTHBs… Similarly, the data show condos were more popular with young homebuyers and empty nesters. For instance, 21% of all condo home-purchase mortgage applications were submitted by buyers aged 18 to 30, compared with just 17% of all single-family home-purchase mortgage applications by the same group in 2018.”
Millennials are increasing the demand for condominiums. The reasons are very practical. With home prices increasing year-over-year, it makes sense millennials are buying condos instead of a single-family house. They offer the benefits of home-ownership but at more flexible price points. This allows Millennials to break the cycle of renting. Accordingly, they can build equity in an asset that appreciates. Just like with a single family home, this equity is key in developing wealth. Ultimately, it can even open up options to move up to a bigger home in the future since they can apply the equity to future home purchases. Naturally, this can be a single family home.