New study shows millennials own more homes than rent
It’s the first time that the generation has moved to a majority of homeownership.
| 5:00 a.m. April 18, 2023
It’s official: Millennials, long considered a demographic prone to renting a place to live, are becoming homeowners.
A recent study from apartment search website and research blog RentCafe reveals that the generation transitioned from renter to owner, with 52% of millennials, born between 1981 and 1996, owning a home in 2022. Many cities in Florida saw a decrease in renters over the past five years, the report found, suggesting homeowners are choosing to settle down here.
The study analyzed 110 of the largest metro areas nationwide. Of those, nearly 30 areas more than doubled the number of millennial homeowners.
North Port in south Sarasota County was one of the top two metro areas nationwide where millennial homeownership increased dramatically over the past five years — at an increase of 804.4%. The majority, 70.9%, of millennials living in North Port, are homeowners, according to the study. Lakeland also made this list at No. 5, with Fort Myers No. 11.
The study suggests an increase in salary and moving back in with mom and dad during the pandemic boosted millennials' opportunities to save up for a home down payment. The generation’s median income in 2022 was $108,000, a 44% increase over five years earlier.
In addition, compared to baby boomers and Gen X in Tampa, the study found more millennials have seen homeownership growth over the last five years. Between 2017 and 2022, millennial homeownership in Tampa grew by 57%. Gen X grew by 12% and baby boomers increased by 1.8% during the same time period.
Staying above the national percentage, 58% of Tampa millennials are now homeowners. In addition, millennial renters dropped by 31%, the report found.
Still, millennials have a ways to catch up to older generations in homeownership: Gen X is up to 70% in Tampa with baby boomers coming in at 85%.
While the younger generation, Gen Z, is just now entering the workforce, 35% of them in Tampa are homeowners.
RentCafe compared the number of owner-occupied properties and households to renter households for each generation for its report, using the Integrated Public Use Microdata Series,which is part of the Institute for Social Research and Data Innovation at the University of Minnesota.