Educated Millennials Are Key to Future Housing Demand
Research shows that education is instrumental to increased earning potential. And that translates to a greater likelihood of becoming a homeowner. If that is the case, Millennials are on the right track.
Millennials have replaced Baby Boomers as the largest living generation in America and they are also the most educated in American history. Approximately 38% of them have a bachelor’s degree or higher, compared with 32% of Gen X and 15% of Boomers when they were the same age.
But education takes time & money and Millennials are delaying key lifestyle decisions in favor of paying for their education, pushing marriage & family formation into their mid-30s. Since marriage & family formation are two of the most powerful motivations for homeownership, we probably haven’t felt the full impact of Millennial housing demand yet. On the other hand, Millennials’ pursuit of higher education is good news for real estate in the long run, because it will create a demographic tailwind for the housing market.