The attractions of renting for all age groups:
Affordability
Freedom to choose where and how to live
The convenience of working and playing in the same area
Amenities such as fitness centers, game rooms, community rooms, and quiet workstations
The New York Fed reports that the share of respondents to its 2022 Housing Survey saying housing is a “bad” or “somewhat bad” investment rose 52% in one year.
Millennials are leading the rental trend.
Renting makes access to trendy, desirable areas of town more affordable.
Millennials prefer flexibility and value a rewarding, meaningful career over a stable, consistent one, and renting allows them to pursue these ambitions more easily.
They are more mobile than other generations. It is easier to end a lease than to sell a home fast.
For hard-working Millennials who covet their free time and have funds left over to enjoy it, passing yardwork, repairs, and maintenance to a landlord is a big plus.
More empty nesters do not want to care for a home.
Like Millennials, they want to avoid the hidden the costs of ownership and enjoy life, not work hard for their house.
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References:
“More U.S. households are renting than at any point in 50 years” by Anthony Cilluffo, A.W. Geiger, and Richard Fry for Pew Research Center, 7/19/17.
"The top five reasons more people are choosing to rent rather than buy a home” by Robert Pinnegar for The Washington Post, 1/27/20.
"Home Price Expectations Diverge in the Short- and Medium-Term; Sharp Increases in Rent Expected Over the Next Year,” Federal Reserve Bank of New York press release, 4/18/22.
Findings from Federal Reserve Bank of New York’s Center for Microeconomic Data, 2022 Housing Survey, part of its Survey of Consumer Expectations (fielded in February 2022)
“Why Millennials are Renting More — And Why It Works for Them” by Marisa Sanfilippo for mymove.com, 3/11/22.
“More Millennials are Renting. This is Why.” by Ben Mizes for Rent.com, 5/14/15.
“Millennials aren't buying homes, and it might not be because they can't afford them: Some actually prefer to rent instead” by Hillary Hoffower for Business Insider, 7/29/19.
“More Millennials Are Renting Because They Have To” by Michael Kolomatsky for The New York Times, 12/30/21, citing a recent RentCafe survey.