Data and real estate media have been telling us over and over again that Millennials have been living with their families longer, postponing marriage longer and postponing having children longer than previous “young adults” have ever done. Currently, according to CNBC’s and Mad Money host Jim Cramer, the Millennial “…delay is over and spending is just beginning.”
In a call with Doug Yearley, CEO of the national homebuilding company Toll Brothers, Cramer reported that in 20% of Toll Brothers’ home closings, at least one purchaser of a home in the 2019 fiscal year was 35 years old or younger.
Yearley said, “This market is strong and demographics suggest it (the market) will grow over the next decade as Millennials mature.”
CEO Sherly Palmer of Taylor Morrison homebuilding told Cramer that approximately 33% of his company’s homes were purchased by Millennial homebuyers, up from approximately 20% five years ago.
This Millennial demographic defined by those born between 1981 and 1997 is expected to be the largest single slice of homebuyers in 2020.
Toll Brothers is most definitely responding to Millennial likes and wants. This homebuilding company is homing in on “affordable luxury communities.” Such communities attract move-up, active adults and Millennial buyers. One third of these “affordable luxury homes” cost up to $500,000. And these affordable luxury communities are available in the 23 states in which Toll Brothers operates as well as in the District of Columbia.
Cramer said, “People who have jobs and feel confident in the future are taking advantage of affordable lux communities wherever they can find it. I think this gives you great insight into the behavior of Millennials, or at least the Millennials who have money to spend.”
Thanks to CNBC’s Tyler Clifford for source data.