First published on http://www.4-traders.com/
Millennials will play a critical role in shaping housing demand over the next five years, concludes a new report by The Demand Institute (TDI). They will spend $1.6 trillion on home purchases and $600 billion on rent, more on a per-person basis than any other generation in the next five years. Millennials will make up one in every four dollars spent on housing over this period.
According to the report, there will be 8.3 million new millennial households formed between now and the end of 2018 as these young adults increasingly venture out on their own. While most of these new households will rent, many existing millennial households will purchase homes. The vast majority plan to buy a home in the future.
Released today by The Demand Institute, a non-advocacy, non-profit think tank jointly operated by The Conference Board and Nielsen, the report Millennials and Their Homes: Still Seeking the American Dream finds that, in contrast to the common refrain about Millennials, these young adults have similar aspirations and intentions as previous generations when it comes to housing. The vast majority plan to own homes, and nearly all already have cars. Most planning to move intend to have their next home in the suburbs, not the city.