Mortgage companies and home builders are keeping their eyes on Millennial New Movers.
Millennials are defined as being born between 1981 and 1997. According to a new report from the Brookings Institution, millennials now make up a quarter of the country’s population. First of all, they comprise 30% of the voting age population and nearly two-fifths of the working-age population. They are a huge cohort. For that reason, millennials are a prime target for many marketers.
The Brookings Institution also looked at the millennial group through many lenses. These included home ownership rates, education, and poverty. Additionally, an analysis of U.S Census data shows that millennials are an increasingly diverse generation. 55.8 % are white and nearly 30% are what the authors called “new minorities”. The new minority group includes Latino, Asian, and those identifying as two or more races.
A study by TD Bank showed that more than 50% of millennials have moved within the past two years. This is compared with 23% of Generation X (ages 35-54) and 15% of those 55 and older.
The TD Bank study also looked at banking behaviors. The study found that millennials are less likely to open a new primary account after moving than any other generation. However, of those millennials who did change their primary bank accounts after moving, 22% reported choosing their bank based on branches that are close to work. Certainly, this is very different than the 55+ group, where 64% choose their bank based on proximity to home.
Millennials also put a higher emphasis on finding new local amenities like grocery and drug stores when preparing to move. In contrast, this is much different than Gen X and those 55 and older. Their hot buttons include access to transportation, restaurants and healthcare. Above all, the millennial cohort wants convenience. They use Uber and food delivery services that are available 24/7.
According to Realtor.com, older millennials (aged 25 to 34) make up 13.6% of the US population. In contrast, they are 30% of the current population of existing-home buyers.
As millennials continue to enter the housing market, the hot spots have been areas where homes are generally more affordable. Most of these are outside of big cities. As a result, since many millennials appreciate the convenience of cities, many continue to rent.
Most noteworthy, those millennials who are looking to buy starter homes are searching diligently. Even though interest rates are low, affordable inventory is scarce.
Cities with highest growth in millennial population
|City||Increase in millennial population|
|Cape Coral, Florida||11.70%|
Brookings Institution/U.S. Census Bureau
Millennials are definitely a force to be reckoned with. For that reason, businesses looking to reach this group can utilize the Dataman Group New Mover list, and select New Movers into their markets by age.