What comes to mind when you think of Millennials?
Urban hipsters in their 20’s, dwelling in gentrified neighborhoods, cycling to work, sipping expensive (and environmentally friendly) coffee, unafraid to jump from job to job?
That’s the popular snapshot of Millennials, but they’re much more diversified–and bigger–than that. A millennial is someone born between 1981 and 1997, (between 18-34 years old). They’re 75,300,000 strong, bumping Baby Boomers at 74,900,000 (between 51-69 years old and born between 1946 and 1964).
With an army of consumer power like that, Millennials are poised to impact our economy in an historic way. Especially the housing industry. Consider these facts:
- Millennials are the largest demographic to ever enter the housing market.
- One out of three households that moved over the last two years were Millennials.
- 8 million Households will be headed by Millennials in 2018.
- 70 percent of Millennials anticipate owning a home by 2020.
- By 2024, nearly 16 thousand new households will be created.
- By 2014 there will be 20 Million more people, age 60 and over than there are today and 18 million more people age 18-44, all driven by the Millennial explosion.
Contrary to what most people believe, a robust housing market is not driven by interest rates. It’s fueled by a growing job market and new family formations. And increasingly, Millennials are replacing their urban chic with the “burbs”. As Baby Boomers downsize, Millennials are starting to form families and enter the housing market. Yep, even the Millennials are starting to drive minivans (I can’t wait to see my son driving around in one).
Next week, I’ll tell you about the surprising “look” of the new Boomers, and what they’ll demand from the housing market.