Millennials are the largest and most diverse generation in U.S. history. As the Baby Boomers phase out of the workplace, there is a buzz on how the Millennials will impact the economy. The group, home grown on technology and information, are a lot different than those of yesterday. This generation is more tech savvy, more liberal, more environmental friendly, less patriotic, and lot less religious (Wilson.) With this in mind, we have to ask where do they stand on home ownership? Urban theorist, Richard Florida suggests that home ownership is no longer desirable and creating an upswing in demand for rentals (Florida.) Also, Millenials seem to be moving into the city and away from the suburbs. Does all this add up to a future decline of owning homes? It may be too soon to tell. With the economy still subpar from the last housing crisis, 50% of those 20-24 are still living at home with Mom and Dad.
Historically, trends have shown a steep incline in young people moving out on their own after the age of 24. For this reason, we should expect a major upswing in the housing or rental market soon. Of course, a big problem is whether there will be any rentals available and if this will cause a shift back to home ownership. Experts at the Wall Street Journal’s Marketwatch claim that the desire for owning a home never went away and that current trends are simply an implication of the economy (Hoak.) That remains to be seen, but we can expect to have answers sooner than later.
Florida, Richard. "America's Looming Rental Crisis." City Lab. The Atlantic, 30 June 2014. Web. 23 July 2014.
Hoak, Amy. "Why Millennials Are Hurting the Real Estate Recovery Amy Hoak's Home Economics." MarketWatch. Wall Street Journal, 12 May 2014. Web. 23 July 2014.
Wilson, Reid. "More Diverse Millennial Generation Rewrites Traditions." The Washington Post, 07 Mar. 2014. Web. 23 July 2014.