| If the blogosphere is to be believed, the Millennial generation is comprised of lazy, selfish, unfocused nitwits addicted to their smartphones.
The generation born between 1980 and 1995 (though there is no consensus on the exact definition of the generational spread, those years are the most common) came of age in a time of sweeping technological changes. The oldest of them do not recall a time when personal computers were extraordinary; the middle of the generation doesn’t remember dialup; and the youngest were only 5 years old when the iPad made its debut. Checkbooks, letters, analog clocks – all archaic artifacts for the Millennials.
This year the oldest Millennials turn 35; the youngest are midway through college. These are formative years for any generation, often including beginning a career, getting married, starting a family – and, of course, buying a home.
Therein lies one of the most common refrains about Millennials – that they aren’t buying houses and are not likely to at the same time in their lives as the generations before them. The uglier reasons given include fecklessness – they are attributed with a tendency to move around from job to job, city to city, industry to industry. Then there’s the “Mom and Dad’s basement” refrain – the accusation of living too long in the care and comfort of the parental home.
But these attributions and accusations are in most cases unfair and unfounded. It may be true that some Millennials choose to hop from job to job and city to city as they explore their options and begin to see their careers take shape. All that moving around, however, produces well-rounded employees with broad experiences and open minds.
The leading edge of the generation graduated into one of the worst recessions this country has ever seen. High unemployment and huge debt loads combined to keep them from being fiscally able to rent – and yes, they often returned home. This has eased considerably in recent years, and Millennials are flocking to urban environments, driving the “live-work-play” movement and helping to create dynamic neighborhoods in cities across the state.
It’s well worth noting the median age of a first-time homebuyer has hovered in the early 30s, and that as of this year, the very oldest of the Millennials are 35 years old. Taking into account the years of the recession, when wages stagnated and jobs were scarce (which made loan repayments and saving for down payments difficult), financially speaking they are about 32 years old – one year older than the median first-time buyer’s age.
So trust not in the blogosphere; the Millennials are indeed homebuyers. They’re just not quite ready yet. As the generation recovers from the recession and begins to move into the reality of adult life, buying a home will be one of the many steps they take. When their life circumstances and financial realities align in a few years, Millennials will be a driving force in the real estate industry.
This editorial first appeared in the July 6, 2015 issue of Banker & Tradesman; fear not, the kids are still all right.
