Millennials Cannot Become Homeowners: Busting the Myth

By Lodha

Millennials, born between the years 1981 and 1996, are a generation that has straddled two worlds before and after digitisation became the norm of the day. With inter-generational debates and discussions taking place every day, a prominent narrative that has gained a foothold has to do with home ownership. From traditional media and news outlets to grievances aired on social media, the common perception is that millennials cannot hope to become homeowners, especially in the current economy. However, what is the ground reality? Is there no way that millennials could own and live in quality homes? Continue reading to see what lies at the heart of this discourse once all myths are dispelled.

How are Millennials Approaching Homeownership?

Although traditionally millennials have been a renting generation, the pandemic has served as a catalyst for changing tides. Post-pandemic China has witnessed approximately 70% millennials switching to owning rather than renting homes. Similarly, Indian millennials are also looking to buy homes. Millennials in India view real estate as a sound investment choice and are prioritising purchasing a home as opposed to renting.
One of the primary reasons for this switch in preferences is the change in professional lifestyle brought about by the pandemic. With lockdowns in full force, traditional office setups were replaced by work-from-home systems. As a result, the ‘home’ became more than just a private space-it also doubled as an office and professional environment. More than any other generation, millennials have started spending even more hours of their day in their homes, prompting a serious re-evaluation of their space and the myriad ways it can serve their evolving needs.

Additionally, the freedom the generation had found on the digital plane translated into their physical realm too. With constraints like finding a home close to their workplace or allowing for easy commutes out of the picture, millennials can choose property that fits within their budget.

What Do the Numbers Have to Say?

Research by 360 Realtors has shown that India is home to 400 million millennials, making up 46% of the country’s wage-earning population with an earning capacity of $ 3.6 trillion. The generation’s earning capacity has quadrupled over the last decade. With growing disposable income, it is no surprise that 70% of India’s millennials are aspiring to buy homes soon. Millennials’ dreams of buying homes are taking place amidst a robust real estate market. While the beginning of 2023 saw the highest number of residential purchases in 15 years, the end of the year witnessed a 16% year-on-year increase in pre-sales.

Why Are Millennials Ready to Become Homeowners?

Millennials are growing more inclined towards becoming homeowners due to a variety of reasons, such as:

The Real Estate Market:

Favourable dynamics in the real estate market have enabled millennials to find homes that meet their requirements in Tier I, II, and III cities. While millennials looking for greater connectivity and professional opportunities can opt for homes in large cities, remote workers can buy spacious residences on the outskirts.

Investment:

Many millennials believe that paying rent is less lucrative as opposed to investing in a home reserved for self-use. Not only does it seem like a more financially viable option for the future, but it also serves as a good investment opportunity. Real estate can offer substantial appreciation, whether put on rent or sold.

Initiatives by Developers:

After the pandemic, real estate developers in Mumbai, Pune, Thane, etc. are offering residential spaces with a host of amenities that can enhance a millennial’s daily life. With a wide inventory of under-construction and completed homes at their disposal, millennials can have their pick of residential properties.

At Lodha, our foundation rests on catering to the needs of a diverse clientele. While projects like South Mumbai’s Lodha Park allow millennials to invest in luxury apartments, Andheri’s Lodha Acenza is the perfect home for working professionals and couples. Lodha’s Palava City, located on the outskirts of Mumbai, offers all of Lodha’s amenities while providing ample connectivity to the city. Our residential properties are fitted with Lodha amenities like swimming pools, gyms, gardens, sporting grounds, and more.

At Lodha, we strive to ensure that no myth barring millennials from buying property prevents you from living in your dream home.