With Millennials expected to represent 70% of the work force by 2020, their impact on the work place will be profound from how to engage them in projects and in philantropy, service projects and sustainability. Their impact at home – where they choose to live – will be as profound. A new Redfin survey of 2,300 millennials nationally found that nearly a third want to own a house and not rent in part so they could rent out part of their home for supplemental income. So the reluctance of current homeowners, many of them boomers, to sell their home because (1) a replacement is hard to find (b) it’s a seller’s market remains a reluctance to sell your home for millennial in the future.
So instead of the liquid, high volume transactions housing market that flourished until 2009, the current slow down in transaction that has distorted prices, promises to linger with the Spring Selling Season disappointing for a record ninth straight year. Millennials also were more bullish about home prices with 86% under age 35 believe home prices will rise in the next 12 months compared to 24% of people over 35. Another factor causing a slow down in trades, a majority of millennials expect to move out of their home city within the next five years. Hence the rental option is far more safe.
Unlike the stock market where transactions are high volume and pricing is theoretically perfect, the housing market is over-valued by the diminution of new home construction and the reluctance of homeowners to list their homes for sale. A related factor is the influx of Class A multi-family newly built for both millennials and boomers who like the amenities and the near to cultural locations.