It’s a very known fact that millennials tend to put off committing to any form of long-term contracts and such in this day and age, and we ultimately can’t blame them, hence is why they are more likely to rent rooms from medium to long-stay providers than spend the bulk of their life savings on houses or even cars. Let’s see why our current generation don’t see long-term commitment as a viable option at this point of time…
Job-hopping in the first few years of employment gives you an edge on your monthly earnings
The Gen-X’ers and Baby Boomers; they stayed loyal and true to large conglomerates for up to 10-20 years and get a pension when they retire. Unfortunately, things changed for our generation. Companies are stacked with loads of ‘in the now’ compensations and benefits and larger companies have high barriers for increments with removal of all forms of pensions; hence, to make it to the next level the young ones have no choice but to job-hop to attain at least a 15-20% salary bump and still maintain a higher competency level. Millennials also are less inclined to accept authoritarian-type of companies (which unfortunately still has a strong presence especially in our region).
Hence, why you will find most are looking for jobs which provides the flexibility and openness in management which is flat in startups or companies practicing new-aged style management.
The need to be financially conscious – to enjoy life experiences before it’s too late!
Young working adults tend to spend on experiences and living in the moment – granted, some still save (savings are always important!) on a monthly basis; the spending often goes to enjoying moments with friends, family and travelling. Hence, regardless of the supply overhang in the real estate world, the bubble is expected to burst, millennials still do not want that kind of monthly commitment hanging over their heads (unless they’re on the next phase of life – marriage & kids!)
Transportation in the past few years have gotten easier with better public transportation system as well as e-hailing rides to get from point A to point B without much hassle. Why pay for cars you’ll need to maintain, fix and clean?
REAL TALK: With the Covid-19 pandemic hitting us worldwide, with tons of retrenchments faced by every generation along business closures – almost everyone will definitely not be able to afford a house in the near future as most are already delving into their life savings. A sad fact, but it’s happening nonetheless. The above mentioned takes a turn from enjoying things to survival mode. We hope this blows over as fast as it began. 🙁
More flexibility and openness to mobility
Young working adults are more open to working overseas and gaining worldly experiences – being able to work regionally and sometimes be based offsite for a few months. This requires various forms of accommodation flexibility and not being tied down to having a car or house to only be coming back to once in awhile. Even on the other side, we see an influx of younger expats coming in from various countries around the world, working in our country for medium to long duration as corporations are also opening regional headquarters around the world. It’s a sight to behold when you do a comparison from just 10 years ago, and our skill-sets grow as we import and export these transfer of tech and skills.
Being tied-down by long-term contracts is just not viable with the way millennials are able to pick-up and go into a new venture – hence, why contracts for internet/telcos or permanently subscribing to a very well-known satellite TV provider is just not what we do anymore. Give us month-to-month subscriptions with no strings attached, anytime!
Lower short-term costs when leasing as opposed to buying property which is a BIG-TIME commitment!
It’s commonly known that when you purchase a property, there will be many upfront payments to be made: Legal fees, down payment, renovation spend, maintenance and repairs, etc. At this juncture, many would deem these costs to be unnecessary; unless you are from a wealthy family (which we would say could amount to practically 1-2% of the whole population). For the majority, leasing will continue to be the most viable option for now while the economy fixes itself amidst the pandemic.
Back to the topic, with all these changes faced in the past 1-2 months – it is highly unlikely that people will buy property as everyone is focusing on surviving and recuperating from losses. This requires flexibility of monthly spend which will definitely be hindered when buying a property.
After all is said and done – we can safely say that this generation is simple; after exploring what the world has to offer, they surely can commit when the time is right given the circumstances and returns; for now, it’s just not viable as millennials are in the growth phase of the learning curve, developing and maturing as they go up the ladder. What is needed is more flexibility, hassle-free living and NO long-term contracts/agreement – and if they somehow feel like they would like to pursue a longer-termed arrangement, they’d definitely put a ‘ring’ on it – or commit!
Explore our fully-furnished rooms with WiFi around popular areas in the Klang Valley here and try us out – no commitment necessary!
LiveIn is a prop-tech company offering end-to-end medium to long-term room rental solutions. With its tagline, Live Smart. Live Easy. – it offers hassle- free property rental solutions for all.