Media reports suggest Millennials will wreak havoc on the U.S. economy and housing market as they eschew anything that doesn’t fit in a backpack. They will move to cities and rent, won’t own things and won’t need cars; a massive slump will ensue because they will remain unmarried and live in their parents’ basements. Not quite.
According to the Demand Institute, today’s 18- to 29-year olds account for just 13.3 million U.S. households (11 percent of total households), but their ranks will swell to 21.6 million households by 2018. Only 16 percent of Millennials say they will never purchase a home and 24 percent already own a home. The necessities of raising a family will be a key factor driving many to purchase; 64 percent expect to be married and 55 percent expect to have children in the next 5 years, compared to 30 percent currently married and 36 percent already having children.