February 15, 2015 | Isabella Schnider
Millennials, individuals between the ages of 18-31, are about to move into their prime spending years.
Millennials, individuals between the ages of 18-31, are about to move into their prime spending years. So what does this mean for the economy? According to Goldman Sachs’ Global Investment Research team, Millennials will reshape the market place with their unique experiences and will change the ways we buy and sell.
As we know, Millennials have grown up in a time of rapid change, giving them a set of priorities and expectations that are widely different than former generations. According to the US Census Bureau, the Millennial generation is the biggest in U.S. history – even larger than the Baby Boom.
We can expect a surge in home sales as Millennials transition into their peak home-buying years (25-45 yrs.). The cohort’s sheer size, matched with its desire to settle down in the future will mean good news for the real estate market.
Although Millennials are putting off marriage and children, that is not to say they want to stay single forever. Today’s median marriage age is 30, compared to the 1970’s when the median marriage age was 23.
Millennials are the first generation of digital natives, and their affinity for technology helps shape how they shop. They are used to instate access to price comparisons, product information and peer reviews. In order to market to this generation, it is detrimental that one utilizes online platforms to grasp their attention.
Lastly, they are dedicated to wellness, devoting time and money to exercising and eating right. So what does this mean for the economy? Their active lifestyle influences trends in everything from food and drink to fashion. More specifically, in the real estate market, location and walkability of a city will be key factors in where Millennials choose to buy.
Source: Goldman Sachs Global Investment Research