The Generation Y tech-savvy carrying iPads, hipsters of super green urban living and averse to suburban living were Born between 1980 and the early 2000’s, Gen Y looks to be the next big purchaser of homes and one that the home building industry is eagerly anticipating. After all, they will quickly become the predominant generational group within the primary home buying age.
While the Gen Y will grow significantly over the next three years, their anticipated influence won’t come into play until 2020.
The home buying delay for this generation is a result of three things:
1. Student loan debt.
With 40% of the 18-29 year old population with established credit but saddled with student loan debt, home ownership may be forced to be delay.
2. The Great Recession.
The persistent downturn that began in 2008 hit just as Gen Y’s were coming of age, delaying the establishment of their careers, and leaving many graduates struggling on the front lines of high unemployment, with 9.7% of those 20-34 unemployed compared to 6.2% among older age groups.
3. A cultural shift.
For the above reasons along with other social influences, Gen Y is putting off major life choices like marriage, starting a family and home buying. Compared to previous generations fewer members of Gen Y are married, and starting their own households are in a more distant future. This notable shift is nearly 10% decrease in the marriage rate of 20-34-year olds in just a six year span.
Generation Y are often referred to as “echo boomers” because they are the children of parents born during the baby boom (the “baby boomers”). Because children born during this time period have had constant access to technology (computers, cell phones) in their youth, they have required many employers to update their hiring strategy in order to incorporate updated forms of technology. Also called millennial’s, echo boomers, internet generation, iGen, net generation.
