Factors that explain the new "generation of landlords" phenomenon
Until the outbreak of the economic crisis that devastated the Spanish real estate market and, with it, the countless number of families throughout our country, buying a home was the priority of young adults. However, this trend has changed and now they prefer to rent a home in Madrid instead. After all, it means living in a home without the long-term commitment to a mortgage and avoiding most of the property's tax and management fees.
The young people belonging to the "Y" generation, which are those who are aged between 30 and 35 years, are classed in the United States as "the tenant generation". Here we are going to try to go a little further into this topic in order to understand it better.
A Generation that Shies Away from Big Expenses
According to the psychologists who have studied this topic, the main reason that explains this "landlord generation" phenomenon is based on the fear that young people have from the various financial catastrophes they have experienced throughout their lives. Most of them experienced it at the end of their student life, which caused them to run into difficulty finding work right after their graduation. Many of them also saw how their parents were affected financially and the hard time they went through meeting their monthly mortgage payments during the crisis.
Very Different Priorities
However, this is not the only factor that defines the "generation of landlords". Young people's priorities have also changed and their definition of success is not the same as their parents'. They now tend to care more about spending their money on taking trips, going on adventures and having fun experiences rather than investing their money in a property.
In other words, young people of the "Y" generation give priority to flexible work schedules, geographical and financial independence instead of having stability and prosperity through owning a property.
Since we have mentioned the concept of geographical independence, we should not forget the fact that jobs in new companies increasingly require greater flexibility by their employees. Therefore, why invest in a house located in one's hometown if the company one works for can at any time send you to another country so you will end up having to rent a place anyway?
Generally, most of those people who buy a home do so as they are thinking of starting a family since stability in such cases is still highly important for them. However, you just have to take a look at the birth rates in Spain to realise that all the factors discussed above have taken their toll on young adults.
In short, renting a property in Madrid has become a priority for young people despite the high prices, and it is an option that is much more attractive to them in the future than buying a home.