- “Winnings” include inheritances from Boomer parents, strong stock market and cryptocurrency profits and rising incomes as young people becoming more established in workforce
- Both Gen-Zers and Millennials see “the home” as refuge from outside world
Gen-Zers and Millennnials May Become Wealthiest Generation Ever?
Certainly the Great Recession of 2008, skyrocketing student debt, climate change and COVID-19 have wreaked havoc on Gen-Zers and Millennials. On the other hand, Investopediarecently noted that “…the economic recovery over the past decade has been good for many Americans,” primarily younger Americans in their 20’s and 30’s.
How can this be? According to RealTrends, these young consumers “…have been given two opportunities between the wealth transfer from their (Boomer) parents and a booming stock and bitcoin market. What we’re seeing is they are taking those winnings to real estate.”
“The Home” Increasingly Important to Young People
A recent report by YPulse, a youth marketing firm, titled “No Place Like Home” indicates that younger consumers “…look to their (home) spaces as mental health retreats…that foster a feeling of escape from the outside world. “
Relational household formation is taking center stage among Gen-Zers and Millennials rather than “traditional” family formations. And these two demographic cohorts are leading the charge, according to research by Fannie Mae, for homes as “sanctuaries.”
Emphasis on Home as “Shelter from the Storm”
The YPulse report indicated that 85% of the participants in this “No Place like Home” survey said they wanted to own their own home. This includes the 48% of 19-37 year olds who have put off ownership due to COVID.
And most all of this 85% are considering/planning a move to suburban or rural areas. Why? Lower housing costs, less crime, proximity to friends, being able to afford larger homes and having more outdoor space. “Moving out of cities is becoming a dream as some plan for a new future,” stated the YPulse report.
Shifts in How Young People Use Their Homes
Several COVID-related shifts stand out in how younger consumers plan to use their “sanctuary” spaces. The YPulse report stated heightened demand for
- Fully equipped home offices consistent with a preference to work from home even after the pandemic
- Home fitness space and equipment as 63% noted a preference to exercise at home
- Private outdoor space even post-COVID
- Well-equipped kitchens
- Play and learning spaces for children
Thanks to Forbes, YPulse, Investopedia, Fannie Mae and RealTrends.