Though things are tough right now for Millennials, agents should definitely keep them on their immediate housing radar.
It’s not easy being a Millennial. As we’re reported recently, the Millennial generation is still the home-bound generation, with many a Millennial still living at home and, as of right now, not fulfilling their substantial promise for the housing market.
That said, there are still considerable rumblings on the horizon, and a new study from The Demand Institute has highlighted a number of pivotal details on Millennials and their relationship to the housing market. Here are five of the most important:
1. Big Numbers – At 80 million-plus, Millennials are the largest generation in our country’s history, and The Demand Institute’s report reiterates just how huge they could be for housing. According to the institute’s projections, 8.3 million Millennials will form households over the next five years, and they’ll spend $1.6 billion on home purchases and $600 billion in rent; such stats are completely dependent on economic growth, of course (growth that has not been there, thus far), but such numbers cannot be completely ignored.
2. Infinite Jest – We just mentioned that the economy has not recovered in Millennials’ favor, but that doesn’t mean that they are a pessimistic bunch. Seventy-nine percent of them, in the institute’s study, think their financial situation will improve, while 74 percent plan to move in the next five years.
3. No Wife and Kids? – Millennials boast low marriage rates, and current trends suggest that they will hold off on buying a home until the husband/wife and kids roll around. In the next five years, though, 64 percent of Millennials intend to marry (up from 30 percent today), and 55 intend to have children (up from 36 percent). Also, it’s worth pointing out that single women have been embracing homeownership with much more vigor than single men.
4. Jonz to Own – Despite the housing boom and bust, Millennials are still warm towards owning their own home. Seventy-five percent believe homeownership is an important long-tern goal, and only 16 percent plan to not purchase a home (compared to 60 percent who do).
5. An Urban/Suburban Mix – True, at 48 percent, more Millennials want to settle in the suburbs than in any other area; however, 38 percent still want to live in urban areas, and 28 percent desire to live within walking distance of both grocery stores and restaurants.