{"id":2322,"date":"2025-12-23T16:55:00","date_gmt":"2025-12-23T16:55:00","guid":{"rendered":"https:\/\/www.guidanceresidential.com\/blog\/?p=2322"},"modified":"2026-01-06T16:38:53","modified_gmt":"2026-01-06T16:38:53","slug":"why-millennial-homes-buyers-should-choose-shariah-compliant-home-financing","status":"publish","type":"post","link":"https:\/\/www.guidanceresidential.com\/resources\/home-buying\/why-millennial-homes-buyers-should-choose-shariah-compliant-home-financing\/","title":{"rendered":"Why Millennials Should Choose an Islamic Home Finance Provider"},"content":{"rendered":"\n

Did you know that around 95% of home buyers under the age of 44 used a mortgage in 2024?<\/strong> For many younger buyers, entering the housing market is the biggest financial decision they\u2019ve ever made. <\/p>\n\n\n\n

The National Association of REALTORS\u00ae 2024 Trends report<\/a> found that Millennials are the largest group of home buyers.<\/p>\n\n\n\n

If you\u2019re a Millennial seeking Islamic home financing, home financing in Islamic banking, or specifically looking for options that respect your values as an Islamic homebuyer, you\u2019re certainly not alone. Now might be the perfect time to explore mortgage alternatives like halal, riba\u2011free Islamic financing.<\/p>\n\n\n\n

Homeownership can be a big step, but it can provide you with increased stability and help you build toward the future.<\/p>\n\n\n\n

5 Reasons Why Muslim Millennials Should Buy a Home <\/strong><\/h2>\n\n\n\n

The homebuying journey isn\u2019t easy, but Millennials are increasingly making the leap to own their own properties. It is a huge investment \u2014 most likely the largest one you\u2019ll make \u2014 so, it\u2019s not something to take lightly. Here are some reasons it may be in your best interest to buy a home.  <\/p>\n\n\n\n

1. Owning Your Space Can Support Your Long-Term Goals <\/strong><\/h3>\n\n\n\n

It\u2019s true that many Muslim Millennials (young adults born between 1981 and 1996<\/a>) are marrying, buying homes, and starting families later in life. However, for older Millennials, that \u201clater in life<\/a>\u201d window is now. <\/p>\n\n\n\n

Rather than buying a house so you can keep up with your friends or meet a childhood goal, think about how homeownership can provide security in your future. You won\u2019t have to worry about your landlord changing or your property selling out from under you when you own. If your long-term goals are not likely to change location frequently, then homeownership might be right for you.  <\/p>\n\n\n\n

2. Home Ownership Helps You Avoid Rising Rents <\/strong><\/h3>\n\n\n\n

The costs just continue to rise, with monthly rent<\/a> rising rapidly at an average rate of >5% each year since 2020 and 7.52% YoY in 2025. Few landlords voluntarily decreased their rent. Renters who do experience lower rents usually initiate negotiations. But even with negotiating a lower monthly cost, your payments are ultimately going to your landlord and not towards your own home. And with rising costs, many are considering homeownership because of the stability<\/a> that owning your own home can provide.  <\/p>\n\n\n\n

3. Buying a Home Can Support Health & Safety <\/strong><\/h3>\n\n\n\n

The National Association of Realtors (NAR)<\/a> reports that homeowners are happier and healthier than non-owners. While this isn\u2019t a direct correlation, they have drawn conclusions that homeownership is correlated with income and education levels, which are typically associated with better health. Additionally, homeownership means a buyer has a larger financial stake in their home than a renter does.<\/p>\n\n\n\n

This usually results in more active involvement in home maintenance, community building, and social activities. A deeper level of involvement leads neighbors to have deeper social ties with each other. And this sense of community turns neighborhoods into better places to reside.  <\/p>\n\n\n\n

4. Homeowners Can Benefit From Rising Home Values <\/strong><\/h3>\n\n\n\n

The good news for current homeowners is that home values continue to rise \u2014 even as the market has softened. Zillow<\/a> predicts home values will rise by .4% by 2026. As a renter, you don\u2019t have equity in the home and can\u2019t benefit from rising value. So, if homeownership matches with your life goals and financial situation, it may be a solid investment.<\/p>\n\n\n\n

5. Owning Properties Can Mean Potential for Rental Income <\/strong><\/h3>\n\n\n\n

If you\u2019ve been thinking about investing in real estate, you might also think about how you can offset your monthly payments or create a kind of passive income. Some owners will purchase a multi-family home, living in one of the units, and renting out the other units. Another option is purchasing a smaller property that is well under your budget and then eventually purchasing a second property, so you can rent one out.<\/p>\n\n\n\n

These options can help you benefit from both homeownership and being a landlord. And this way, you have the opportunity to own your own home, start investing, generate income, and become an on-site property manager. <\/p>\n\n\n\n

Where Are Millennials Buying Homes? <\/strong><\/h2>\n\n\n\n

In an analysis<\/a> conducted by data firm Corelogic, when Millennials consider where to purchase a home, they factor in \u201chome affordability, employment opportunities, flexibility to work remotely, local tax rates and preference for open spaces.\u201d NAR<\/a> reports that \u201cconvenience to their job and commuting costs\u201d are top concerns that impact purchasing decisions for Millennials. <\/p>\n\n\n\n

These Are the Markets Where It\u2019s Cheaper to Buy vs. Rent <\/h2>\n\n\n\n

Typically, it\u2019s more expensive to buy than rent in big cities. According to research from Construction Coverage<\/a>, only 32 out of 343 US cities offer more affordable buying options than rentals. The top 10 cheapest cities for homebuyers include:<\/p>\n\n\n\n

  1. Detroit, MI<\/li>
  2. Jackson, MS<\/li>
  3. Cleaveland, OH<\/li>
  4. Birmingham, AL<\/li>
  5. Montgomery, AL<\/li>
  6. Baltimore, MD<\/li>
  7. Memphis, TN<\/li>
  8. Shreveport, LA<\/li>
  9. Toledo, OH<\/li>
  10.  Akron, OH<\/li><\/ol>\n\n\n\n

    The ten cheapest counties for home buyers include:<\/p>\n\n\n\n

    1. Suffolk County, NY<\/li>
    2. Hinds County, MS<\/li>
    3. Pitkin County, CO<\/li>
    4. Danville City, VA<\/li>
    5. Lauderdale County, MS<\/li>
    6. Kleberg County, TX<\/li>
    7. Chaves County, NM<\/li>
    8. McCracken County, KY<\/li>
    9. Montgomery County, KS<\/li>
    10. Montgomery County, AL<\/li><\/ol>\n\n\n\n

      6 Ways Millennials Are Making Homeownership Happen <\/strong><\/h2>\n\n\n\n

      Millennials are typically at a point in their lives when their careers are growing and they\u2019re paying off as much student loans and debt as possible. Especially during the pandemic, Americans have paused costs, resulting in 45% reporting that they were able to build up a nest egg according to a New York Life survey<\/a>.  <\/p>\n\n\n\n

      \n