Tech-enabled real estate company Mynd, engaged research firm Big Village to conduct an omnibus survey among 1,018 U.S.-based adults aged 18 years and older who rent or own their home. The 2022 Consumer Insights Report shines a light on shifting attitudes toward homeownership, property management, and generational differences in real estate investing.
Younger generations are reimagining the relationship between homeownership and the ‘American dream’
Despite an increasingly complex housing market, a significant majority (78%) of respondents still associate homeownership with achieving the “American dream,” and 65% of respondents see homeownership as a means of building intergenerational wealth.
However, the way people perceive homeownership is changing. Younger generations are buying investment properties before, or instead of, a primary residence — often decoupling where they choose to live from where they choose to invest. In fact, almost one-fifth (19%) of people who own an investment property choose to rent their primary residence, and 72% of all respondents (both property owners and renters) would consider buying a property in a different city or state than where they live.
“While the economy is in flux, single-family real estate remains a desirable asset class for long-term, sustainable wealth creation,” said Doug Brien, co-founder and CEO of Mynd. “It’s no wonder that during this economic inflection point, many folks are looking for ways to future-proof themselves.“
Millennials and Gen Z have a strong urge to invest in property
Almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X. Moreover, about two-thirds of Millennials and Gen Z (68%) agree that investing in real estate is a smart financial decision.
However, younger generations aren’t blind to the challenges that can come with property ownership. Among Millennials and Gen Z who already invest, the top concerns are repairs and maintenance, property damage, and extended periods of vacancy. Over half (55%) of Millennial and Gen Z investors say that it’s been difficult to find renters for their property, and almost a third (32%) say that one of their biggest concerns this year, at a moment of spiking rents and high inflation, is that residents won’t be able to pay rent.
A worrying gap in perceptions on tenants’ health and safety
Additionally, the report found a striking difference between the expectations of renters and property owners. Only 47% of renters believe that the property owner or property manager of their home cares about their health and safety. Yet, 91% of self-managing owners say they care about their residents’ health and safety, and 95% believe that they are providing their residents with a safe and secure home.
“When it comes to showing a commitment to renters’ well-being, even the most well-intentioned property owners seem to be missing the mark,” said Brien. “In the coming years, there’s a major opportunity for a new generation of SFR investors to close this gap and provide families with safe, happy homes — while also building long-term wealth.”
Founded in 2016, Mynd is backed by top VCs, including Lightspeed, Canaan, Jackson Square, and QED, and recently announced a $5 billion deal with Invesco Real Estate, making Mynd the largest buyer of single-family rental homes in the US.
