Did You Know? [video_popup url=”” text=”none”]
Millennials, born between 1982 and 2000, constitute the largest population of U.S. workers. They started their post-college careers slowly, with large college loans and sluggish employment.
They are finally beginning to settle down and start families. As a group, they are fiscally conservative, and finally can save for and buy homes.
This influential faction of the population brings their conservatism to their home buying. It isn’t so much glitz and glamor they want as practical efficiency.
Energy-efficient homes and appliances. Millennials understand the comfort and value of low maintenance and saving energy. They also understand the idea of connecting all those home appliances and services to a hub they can control on their phones.
Laundry rooms. Instead of a party room, they need a well-organized area to conquer day to day laundry.
Patios. Millennials are active and when out of their office jobs, embrace the outdoors.
Eat-in kitchens. The formal dining of their parents is not how millennials live. Meal preparation is a family activity.
Hard-surfaced floors. The maintenance and durability of wood is preferred and timeless.
Millennials have different characteristics and preferences from earlier generations, which
explains why their homeownership rate is lower.
Millennials are more racially and ethnically diverse, and minority households have
homeownership rates almost 15 percentage points lower than white households.
Although millennials are more highly educated, even the homeownership rate among
highly educated millennials has fallen 5 percentage points compared with the prior two
Millennials are more likely to delay marriage and childbearing, life changes that frequently
lead to homeownership. The marriage rate among young adults has fallen from 52.3
percent in 1990 to 38.5 percent in 2015. Millennials also delay household formation and
are more apt to live with their parents.
Even for white households married with children and with substantial household income,
the homeownership rate is 2 to 3 percentage points lower than for similar households in
the previous two generations, suggesting an attitudinal shift toward homeownership.
Millennials prefer living in high-cost cities, where housing supply is inelastic. Within a city,
millennials prefer living in counties with a more urban environment, where the house prices
have increased more than in the surrounding areas. The shift in geographic preference is
mostly observed among highly educated millennials.