lots of millennials looking to burbs for homes and big suvs
08-26-17, 12:18 PM
#1
Lexus Fanatic
Thread Starter
iTrader: (20)
lots of millennials looking to burbs for homes and big suvs
quite interesting.
Millennials are finally starting their own baby boom and heading for the suburbs in big sport utility vehicles, much like their parents did.
Americans aged about 18 to 34 have become the largest group of homebuyers, and almost half live in the suburbs, according to Zillow Group data. As they shop for bigger homes to accommodate growing families, they’re upsizing their vehicles to match. U.S. industry sales of large SUVs have jumped 11 percent in the first half of the year, Ford Motor Co. estimates, compared with increases of 9 percent for midsize and 4 percent for small SUVs.
“We do see that demographic group driving larger sport utility sales as they acquire homes, create families and gain some wealth,” said Michelle Krebs, an analyst at car-shopping website Autotrader. “They started with compact sport utilities and now, with families, they’re moving up.”
The shift to suburbia may surprise those who’ve chided millennials for being more interested in pricey avocado toast than in saving for a home. Much of the generation delayed marriage, childbearing and home ownership after graduating with heaping student-loan debt and entering a weak job market. As more millennials overcome this, many want the life of their baby-boomer parents -- the kids, the house in the ’burbs and the beefy SUV.
“As more people move out of their parents’ basement -- and there’s still quite a few living there -- we expect to see continued healthy demand for homes,” said Svenja Gudell, chief economist for Zillow, which found millennials made up 42 percent of homebuyers last year. “Millennials delayed home ownership, just like they delayed getting married and having kids, but now they’re making very similar decisions to their parents.”
Strollers, Cribs
More millennials are expected to move up into bigger SUVs with three rows of seats and enough cargo space for strollers and portable cribs. Sales of midsize SUVs will grow by 16 percent between now and 2022, while deliveries of the biggest rigs -- think Ford Expeditions and Chevrolet Tahoes -- will jump 25 percent, according to a forecast by researcher LMC Automotive.
Millennials ranked having children, buying a suburban home and driving a big family vehicle higher in terms of importance than living in a major city or relying on alternate forms of transportation in a survey that Ford conducted in June.
“There’s no question people are waiting longer, but people still want to have children,” Erich Merkle, Ford’s U.S. sales analyst, said in an interview. “As long as people have children and those children grow and acquire friendships, it requires more space.”
Today, the largest group of midsize and large SUV buyers is between the ages of 35 and 44, Merkle said. That cohort, known as Gen X, is significantly smaller than millennials, who are about 80 million strong.
More Buyers
“There’s going to be an extra 25 million people passing into and through the 35- to 44-year-old demographic over the next 10 to 15 years,” Merkle said. “That’s going to lead to a gradual increase in the growth of large and midsize SUVs that’s already starting to happen.”
Merkle wouldn’t say if Ford expected sales of larger SUVs to eventually outpace compact utilities, a segment that’s surged past family sedans like the Toyota Camry and Honda Accord. Ford forecasts that SUVs will grow to 45 percent of the U.S. market in the next five to seven years, from 40 percent now.
Increasingly, that growth will be driven by millennials, the oldest of whom have lifted the annual birthrate for women 30 to 34 to the highest level since 1964, according to the U.S. Centers for Disease Control and Prevention.
“As a sample size of one, I certainly need a lot of space because it’s really tough to travel with a child,” said Zillow’s Gudell, who drives an Audi Q5 SUV.
https://www.bloomberg.com/news/artic...uying-big-suvs
Millennials are finally starting their own baby boom and heading for the suburbs in big sport utility vehicles, much like their parents did.
Americans aged about 18 to 34 have become the largest group of homebuyers, and almost half live in the suburbs, according to Zillow Group data. As they shop for bigger homes to accommodate growing families, they’re upsizing their vehicles to match. U.S. industry sales of large SUVs have jumped 11 percent in the first half of the year, Ford Motor Co. estimates, compared with increases of 9 percent for midsize and 4 percent for small SUVs.
“We do see that demographic group driving larger sport utility sales as they acquire homes, create families and gain some wealth,” said Michelle Krebs, an analyst at car-shopping website Autotrader. “They started with compact sport utilities and now, with families, they’re moving up.”
The shift to suburbia may surprise those who’ve chided millennials for being more interested in pricey avocado toast than in saving for a home. Much of the generation delayed marriage, childbearing and home ownership after graduating with heaping student-loan debt and entering a weak job market. As more millennials overcome this, many want the life of their baby-boomer parents -- the kids, the house in the ’burbs and the beefy SUV.
“As more people move out of their parents’ basement -- and there’s still quite a few living there -- we expect to see continued healthy demand for homes,” said Svenja Gudell, chief economist for Zillow, which found millennials made up 42 percent of homebuyers last year. “Millennials delayed home ownership, just like they delayed getting married and having kids, but now they’re making very similar decisions to their parents.”
Strollers, Cribs
More millennials are expected to move up into bigger SUVs with three rows of seats and enough cargo space for strollers and portable cribs. Sales of midsize SUVs will grow by 16 percent between now and 2022, while deliveries of the biggest rigs -- think Ford Expeditions and Chevrolet Tahoes -- will jump 25 percent, according to a forecast by researcher LMC Automotive.
Millennials ranked having children, buying a suburban home and driving a big family vehicle higher in terms of importance than living in a major city or relying on alternate forms of transportation in a survey that Ford conducted in June.
“There’s no question people are waiting longer, but people still want to have children,” Erich Merkle, Ford’s U.S. sales analyst, said in an interview. “As long as people have children and those children grow and acquire friendships, it requires more space.”
Today, the largest group of midsize and large SUV buyers is between the ages of 35 and 44, Merkle said. That cohort, known as Gen X, is significantly smaller than millennials, who are about 80 million strong.
More Buyers
“There’s going to be an extra 25 million people passing into and through the 35- to 44-year-old demographic over the next 10 to 15 years,” Merkle said. “That’s going to lead to a gradual increase in the growth of large and midsize SUVs that’s already starting to happen.”
Merkle wouldn’t say if Ford expected sales of larger SUVs to eventually outpace compact utilities, a segment that’s surged past family sedans like the Toyota Camry and Honda Accord. Ford forecasts that SUVs will grow to 45 percent of the U.S. market in the next five to seven years, from 40 percent now.
Increasingly, that growth will be driven by millennials, the oldest of whom have lifted the annual birthrate for women 30 to 34 to the highest level since 1964, according to the U.S. Centers for Disease Control and Prevention.
“As a sample size of one, I certainly need a lot of space because it’s really tough to travel with a child,” said Zillow’s Gudell, who drives an Audi Q5 SUV.
https://www.bloomberg.com/news/artic...uying-big-suvs
Last edited by bitkahuna; 08-26-17 at 02:56 PM.
08-26-17, 01:11 PM
#3
The 2018 Expedition will be a nice choice for those wanting space, plus historically the Expedition has had one of the better third row seats in regards to legroom. Also excited to see the return of the Lincoln Aviator (probably Explorer based). Wonder when Toyota will redo the Sequoia, needs a redesign badly.
08-26-17, 01:43 PM
#4
Lexus Test Driver
What I'm seeing here in L.A. are foreign people coming in and buying up the newer, more expensive family homes. And that pretty much categorizes all homes in LA- expensive. Not sure how millennials can afford anything to live in around here.
08-26-17, 02:41 PM
#5
Lexus Fanatic
We actually have a speaker coming to a little event we're planning in a few weeks to present on this very same topic as pertains to our industry. Yep, turning out a lot like previous generations in terms of buying behavior.
This is all pretty hilariously inaccurate and cliche.
The vast majority of millennials bear no resemblance to your description here. I would ask how many millennials you actually know. My guess is very few, perhaps none.
This "millennials all live at home and eat avocado toast and don't drive and text all the time" thing is way overblown and inaccurate.
What's delayed millennials purchase of homes and cars and such is debt from school, a rocky start to their professional lives because of the economy, and what you're seeing is those pressures starting to ease. The real story is that when they can make purchases, their buying preferences look a lot more like their parents than people assumed they would.
I know way more millennials that more closely resemble me than resemble your classification of a millennial.
Originally Posted by mmarshall
It wasn't avocado toast that delayed this group from any real interest in new vehicles. It was a general obsession with electronics.....texting, cell-phones, I-Pod, MP3, tablets, Facebook, social-media......you name it. Because they lived at home with their parents, rode around in Mom or Dad's minivans or SUVs, and generally communicated with their friends through the social-media world, they generally had little need for new vehicles.....until now. The ObamaCare law assisted that by allowing them to stay on their parents' health insurance until age 26. A number of them never even got Driver's Licenses....didn't need them. But, as this article plainly indicates, one cannot necessarily live that lifestyle forever....either out of sheer boredom or simply a desire for something different.
The vast majority of millennials bear no resemblance to your description here. I would ask how many millennials you actually know. My guess is very few, perhaps none.
This "millennials all live at home and eat avocado toast and don't drive and text all the time" thing is way overblown and inaccurate.
What's delayed millennials purchase of homes and cars and such is debt from school, a rocky start to their professional lives because of the economy, and what you're seeing is those pressures starting to ease. The real story is that when they can make purchases, their buying preferences look a lot more like their parents than people assumed they would.
I know way more millennials that more closely resemble me than resemble your classification of a millennial.
08-26-17, 04:25 PM
#7
Lexus Fanatic
Trending Topics
08-26-17, 04:40 PM
#8
Lexus Fanatic
Originally Posted by mmarshall
It is neither...and certainly not hilarious. Plenty of millennials do fit that description....of course, not all of them.
You didn't answer my question, how many millennials do you know? I can name 10 millennials right now that I know who make over $400k a year. I know one millennial (who is not in college) who lives at home. One. It's my wife's cousin, and he has a developmental disorder.
I actually find your description of millennials offensive.
08-26-17, 05:10 PM
#9
Lexus Fanatic
I actually find your description of millennials offensive.
Last edited by mmarshall; 08-26-17 at 05:41 PM.
08-26-17, 05:28 PM
#10
Lexus Champion
We actually have a speaker coming to a little event we're planning in a few weeks to present on this very same topic as pertains to our industry. Yep, turning out a lot like previous generations in terms of buying behavior.
This is all pretty hilariously inaccurate and cliche.
The vast majority of millennials bear no resemblance to your description here. I would ask how many millennials you actually know. My guess is very few, perhaps none.
This "millennials all live at home and eat avocado toast and don't drive and text all the time" thing is way overblown and inaccurate.
What's delayed millennials purchase of homes and cars and such is debt from school, a rocky start to their professional lives because of the economy, and what you're seeing is those pressures starting to ease. The real story is that when they can make purchases, their buying preferences look a lot more like their parents than people assumed they would.
I know way more millennials that more closely resemble me than resemble your classification of a millennial.
This is all pretty hilariously inaccurate and cliche.
The vast majority of millennials bear no resemblance to your description here. I would ask how many millennials you actually know. My guess is very few, perhaps none.
This "millennials all live at home and eat avocado toast and don't drive and text all the time" thing is way overblown and inaccurate.
What's delayed millennials purchase of homes and cars and such is debt from school, a rocky start to their professional lives because of the economy, and what you're seeing is those pressures starting to ease. The real story is that when they can make purchases, their buying preferences look a lot more like their parents than people assumed they would.
I know way more millennials that more closely resemble me than resemble your classification of a millennial.
08-26-17, 05:40 PM
#11
Lexus Champion
We actually have a speaker coming to a little event we're planning in a few weeks to present on this very same topic as pertains to our industry. Yep, turning out a lot like previous generations in terms of buying behavior.
This is all pretty hilariously inaccurate and cliche.
The vast majority of millennials bear no resemblance to your description here. I would ask how many millennials you actually know. My guess is very few, perhaps none.
This "millennials all live at home and eat avocado toast and don't drive and text all the time" thing is way overblown and inaccurate.
What's delayed millennials purchase of homes and cars and such is debt from school, a rocky start to their professional lives because of the economy, and what you're seeing is those pressures starting to ease. The real story is that when they can make purchases, their buying preferences look a lot more like their parents than people assumed they would.
I know way more millennials that more closely resemble me than resemble your classification of a millennial.
This is all pretty hilariously inaccurate and cliche.
The vast majority of millennials bear no resemblance to your description here. I would ask how many millennials you actually know. My guess is very few, perhaps none.
This "millennials all live at home and eat avocado toast and don't drive and text all the time" thing is way overblown and inaccurate.
What's delayed millennials purchase of homes and cars and such is debt from school, a rocky start to their professional lives because of the economy, and what you're seeing is those pressures starting to ease. The real story is that when they can make purchases, their buying preferences look a lot more like their parents than people assumed they would.
I know way more millennials that more closely resemble me than resemble your classification of a millennial.
08-26-17, 05:43 PM
#12
Lexus Fanatic
If you are all that annoyed with it (though I still see no reason for it), I'll delete the post.
Last edited by mmarshall; 08-26-17 at 05:58 PM.
08-26-17, 09:28 PM
#13
Lexus Fanatic
Thread Starter
iTrader: (20)
Just curious... since your town house development is full of millennials... how many of them are living there with parents, obsessed with technology, and bored, and riding in mom and dad's minivan or suv?
08-27-17, 03:17 AM
#14
Lexus Fanatic
Minivans are actually quite popular in my development (I'm one of the few single people living here....). My next door neighbor (with two kids at home) just got a couple-year-old Toyota Sienna. But, as with a lot of other developments, the inroads of SUVs has been noticeable.
But, unless you have another question, I'm out of this thread.
Last edited by mmarshall; 08-27-17 at 03:46 AM.
08-27-17, 06:00 AM
#15
same in queens ny a friend runs a real estate sells perfectly good homes ready to move in foreigner's show up with all cash demolish home down to the dirt and build giant brick castles with these strange looking polished chrome fences