Page 52 - 2018 July Newsletter

A contribution from a Chicago Lodge 7 Magazine sponsor
Rising rents: Is it time for millennials to buy?
Millennials, also known as Generation Y or the Net Generation, are the demographic cohort that
in a range of years, but the general bracket is individuals born between 1980 and 2000. (I’ll
few years. In the last 13 months, rents have increased 4 percent nationwide. That’s not huge, but relentless increases year after year add up. If buyers can lock in a monthly mortgage with a 30-yearfixed,thereisahugeincentivetogetintothehome
buying market. Millennials respond to that.”
According to an online survey of more than 1,000 active buyers conducted in early March by Toluna Research for realtor.com, 23 percent of millennials surveyed indicated that rising rent was a trigger for their home buying pur- chase. Realtor.com reports that Housing and Urban Devel- opment Department (HUD) data shows rents were up in 85 of the top 100 metro areas, including nine metros where rents were up by
double-digit percentages from a year ago.
According to Thomas Knapp, associate professor of entrepre-
neurship, USC Marshall School of Business:
“I think it also has to do with millennials being ready to settle
down. Then they take a look at interest rates going up and see money is not getting cheaper and they are ready to start looking.”
At the end of the day, renting is paying someone’s else mortgage!
Inquire today for a “rent to purchase” comparison and live the dream of owning your home.d
Dympna Fay-Hart has been selling real estate for 25 years on Chica- go’s Northwest Side. She is recognized as one of the top 1 percent of realtors. She is a contributing author to the Amazon bestseller Smart Women Live Their Why and she has published articles in the Chica- go Tribune, Chicago Agent magazine and Chicago Who’s Who. She can be reached at 773-230-3800 or www.fayhart.com.
ectly follows Generation X (those born from approximately 1965 to 1980). Millenials are comprised of individuals who reached adult- hood around the turn of the 21st century. Dif- ferent historians have millennials being born
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DYMPNA FAY-HART
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lp you with the math — today’s millennials are
Real Estate
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about 18-38 years old).
The millennial market is on the move. Rising rents, coupled with starting a family and increasing wages in a solid job market, are motivating millennials toward home ownership. Let’s face it: Chicago rents are getting higher and higher, and the people paying these high rents, who have good jobs and plan to stay in the Chicago area, are seeing the value of buying. I show them the actual cost to purchase and what their monthly payment will look like, and for many it’s less than their current rent.
Chicago’s first-time millennial buyers, the ones who are buying condominiums and houses, fall into the 27-to-35 demographic. When you look at Chicago rents and then consider that there are a variety of low- or no-down payment assistance programs which allow you to get into the market, that becomes a significant factor.
A recently released survey from realtor.com on rising rents and the impact on millennials sheds light on the issue. Danielle Hale, chief economist at realtor.com, provides insights:
“We know rents have been going up pretty consistently the past
Knapp Medical Center
52 CHICAGO LODGE 7 ■ JULY 2018
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