San Luis Obispo rent is steadily increasing at the highest rates in the state. Central Coast Millennials may soon follow the national trend and take the plunge into home ownership. The National Association of REALTORS® recently reported Millennials hold the highest share of home buying activity out of all other generations for the fifth consecutive year.
Rents in San Luis Obispo have increased an alarming 39.42%. An increase from September 2017 to an average of $1512 for a 1-bedroom and up to $2600-$2800 for 2 to 3-bedrooms, according to Rent Jungle. The tight rental market has forced Millennials into considering home-ownership as an alternative. They are discovering they are getting more bang for their buck.
MORE BANG FOR THE BUCK
A recent rent.com survey indicates that 51 percent of millennials are spending more than 40 percent of their annual income on rent. The factor most important to them is affordability.
But here’s what most Millennials don’t know. Instead of paying $2,500 a month in rent to a landlord, they can purchase a $435,000 home with only 5% down conventional financing, and also have no monthly mortgage insurance “PMI”, for the same total monthly payment.
With very limited supply of rentals and increasing costs, successful realtors are doing well to educate these potential first-time home buyers on the comparative cost of renting and buying.
Other important factors at the top of the millennial renters wish list are size and amenities so Realtors are focusing on the facts that they can get something bigger, with more amenities, if they buy.
FIRST-TIME HOME BUYERS
Because of their age, most millennials qualify as first-timers and usually have less funds for a down payment and might also have student debts, poor credit, or financial worries that make it hard to finance a purchase. Realtors at Century 21 Home can guide potential buyers by knowing the best programs out there to deal with their unique financial situations.
MOST LIKELY GENERATION TO USE REALTORS
Millennials are the most likely generation to use a real estate agent. 90% of Millennials are purchasing through an agent. Among the trends Realtors are seeing in the younger home-buying generation, they are more likely to live closer to friends and family, rather than in select areas of the city or certain schools. They are also buying condos in the city at a very low rate. Millennials answered that the top benefit their agent provided was understanding the buying process.
About CENTURY 21 Hometown Realty – Hometown Realty is the leading real estate firm on the central coast of California with offices spanning Santa Barbara County and San Luis Obispo county offering expert agents and convenient locations.
REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics. C21 Hometown Realty is proud to have all their agents as members of REALTOR.