Millennials Will Drive Economic Recovery
Millennials, the generation of people born between 1981 and 2000, is our country’s largest generation, comprised of approximately 90 million people. They are the heads of about 20 million households, and due to their age that number will only grow. They hold the key to driving the real estate market for generations to come and this is why.
Millennials Are Moving On Up
Youth and the typical financial status of youth are just that and not a reflection of attitude about their desire to succeed or the value they place on independence and home ownership. Millennials made up nearly 30% of buyers this past summer, representing the largest contingent of serious buyers in the market, while representing an estimated 14% of Sellers this year.
Millennials Are Starting Families
Life happens and it is enough to drive Millennials into the housing market. Responding to polls, a full 86% of millennials indicated they were buying now because of a change in their household size and composition, meaning marriage, having children or planning to start a family. They should represent two-thirds of all household formations over the next five years.
The motivation of a growing household was much higher for millennials than any other demographic. Their timing for entering the job market was poor, but unavoidable, so from an unemployment standpoint, they suffered the more than others demographics, but that scenario has changed dramatically in the last two years. Their unemployment rate hovers close to the same level as the general population and this year, millennials are experiencing 60% better job growth than the country as a whole and future job creation favors millennials. Gains in economic opportunity are leading them to form households and buy homes and we’re only on the cusp of seeing the impact millennials will have on residential sales
Student Loans Will Be Paid Off
Student debt is frequently cited as a cause for millennials not entering the housing market, and it is true that many are carrying that burden. However that debt is also an investment. They are the best educated generation we have seen and in the long run they should enjoy the most economic opportunities because of their educations. Short-term, 70% of student loan borrowers owe a manageable debt of less than $25,000. Young and just getting started, their educations, diversity, technical skills and desire to succeed will be vital to the economic success of the United States.
Walt Smith, Broker
Coldwell Banker Residential Brokerage
803 622 5210