Millennials are a diverse demographic. Today, they’re between the ages of 27 and 42, between young adulthood and nearly middle-aged. Trust us; we’ve heard plenty of discourse about millennials and the housing market over the years.
(Who can forget the infamous comment from millionaire and real estate mogul Tim Gurner, saying millennials could afford homes if they stopped buying avocado toast?)
In the wake of the Great Recession, millennials also took the heat for sluggish market recovery. But now, millennials are older. Wiser. They’re slowly getting their financial footing despite living their working years through the Great Recession and COVID-19. In fact, Axios reports that between 2017 and 2022, millennial homeownership grew to 18.2 million, a 64% increase. Now, over half of American millennials own homes.
And they’re buying turnkey real estate, too.
Turnkey properties are usually fully renovated and ready for immediate rental (if not already occupied). Not only that, but turnkey providers curate and buy properties in promising, heavily-researched markets. That reduces a lot of legwork for millennial investors! This lower barrier to entry makes turnkey real estate appealing to millennials with limited experience or resources for property management and maintenance. Leveraging investing and property management expertise makes it a friendlier place for investors to start.
Further Reading: 6 Green Flags in a Turnkey Real Estate Company
People want to earn passive income for various reasons, from saving for retirement to paying for a kid’s college tuition someday. Millennials often find themselves saddled with debt and low wages. Many are attracted to turnkey real estate for passive income-earning potential. This cash flow not only helps their bottom line, but it’s an inflation-resistant investment to boot. This cash flow helps supplement wages and secure financial stability.
Millennials are aware of the benefits of diversifying their investment portfolios. Turnkey real estate provides a tangible asset that can diversify their investment portfolio beyond traditional stocks, bonds, and mutual funds. Having seen the real estate market through trials and tribulations, they’ve recognized just how reliable it can be.
Today, pensions are few and far between. Simple savings won’t cut it for retirement. Even the longevity of Social Security is in question. Millennials need alternative ways to secure their wealth as old methods dwindle. Because of this, they view real estate as a vehicle for long-term wealth building and asset appreciation. Turnkey properties, if well-maintained and managed, can appreciate in value over time, providing potential capital gains and rental income.
Traditional real estate investors of generations past were more wary of investing out-of-state. However, millennials were coming of age when the Internet revolutionized the world as we know it. They’re far more comfortable with digital transactions and remote opportunities. The national (even global!) accessibility of turnkey real estate and property management solutions aligns with their digital preferences. Simply put, investing in turnkey real estate is convenient.
As millennials enter stages of life that involve starting families or planning for retirement, they seek stability and financial security. Turnkey real estate, with its potential for steady rental income and long-term appreciation, contributes to wealth-building. It’s relatively low-risk, and, in the right markets, reliable.
Real estate investing is a time-tested way to build wealth. It’s been proven over and over, even across a variety of applications. So, real estate is generally a lower-risk investment. Not only that, but turnkey properties often come with established rental histories and occupancy records, reducing some of the risks associated with vacancy and turnover. This stability can appeal to millennials looking for lower-risk investment opportunities, especially when paired with the right property management team.
Overall, the stellar combination of passive income potential, diversification benefits, long-term wealth building, technological accessibility, and risk mitigation makes turnkey real estate an attractive investment option for millennials. It’s never too early to start – whether you’re a 40-something elder millennial or a 90’s kid.
In fact, the sooner you invest, the greater your potential for future gains. Don’t overlook this investment strategy, especially if you want to build wealth while still living your life.
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