Millennials are less mobile than previous generations
According to analysis by the Pew Research Center, only 20 percent of 25 to 35 year olds reported a change of address in 2016, compared to 26 percent of Gen Xers in 2000. Meanwhile, in 1990 27 percent reported to have moved homes in the year prior.
Subsequently, today’s young Americans have been revealed to be less mobile than the previous four generations were at the same age, with the trend underscoring a pattern across all demographic groups. The research revealed that the overall share of Americans of all ages who moved homes in the previous year fell to an all-time low of 11.2% in 2016, according to the U.S. Census Bureau.
Economists are concerned by the trend as moving has previously been linked to the pursuit of job opportunities and with the economy improving, they would expect Americans to be moving in greater numbers. Millennials in particular, would be expected to be mobile since they are less likely to be tied down by three of the things that tend to hinder people from moving – a spouse, a house, or a child.
Though you could attribute the change in behaviour to Generation Y’s affinity for a rejection of norms, the need to be coddled, or too much time spent staring at their screens, the real reason behind the trend becomes clear when you follow the money – they don’t have any. As such, the pattern is associated with young people’s inability and lack of interest in buying a home.
Whilst prior generations would aspire to move to the suburbs or to smaller towns so that they may afford a mortgage, the concept appeals less so to today’s young adults as they enjoy the amenities provided by urban life. Another reason may also be the difficulty faced by many young people in purchasing a home. This is due to an inability to put down a deposit on a home because of credit constraints and rising rent prices. Consequently, the low home ownership rate among young adults has been one of the biggest blocks toward the housing-market recovery. U.S. Census data has revealed that the home ownership rate among those aged 35 years or younger fell to 34.7% in the fourth quarter of last year, compared to 39.2% in the fourth quarter of 2010.