Millennials in the Marketplace

Millennials – more than one in three Americans and our young adults between the ages of 18 and 34 – this year surpassed generation X, those born from the early 60's to the early 80's as the largest percentage of the work force, according to the Pew Research Center. They are 53.5 million strong and last year surpassed the Baby Boomers in the workforce, as Boomers are beginning to retire. With its disproportionately large share of immigrants, and just beginning to transition from college to the workforce, the percentage of Millennials in the workforce is likely going to increase more in time. Immigration is expected to increase the number of Millennials in the labor force - Immigrants coming to the U.S. are disproportionately in their young working years. Few immigrants arrive here as children or older folks. In the past five years, over half of the newly arrived immigrants have been Millennials.

They are beginning to start households of their own and getting into the housing market in increasing numbers. In recent years, the number of first-time home buyers active in the market has been lower than the historical average and this is thought to be of critical importance in the strength of the housing market. As these Millennials become homeowners, the real estate market will become more stable and balanced, reducing the volatility now seen in the month-to-month fluctuations of the market.

Jonathan Smoke, Realtor.com’s chief economist, said 'Millennials are a critical component of the first-time home buyer market and getting that segment of the market functioning again is a necessity for bringing the housing ecosystem back to full health.' And, according to new data from Realtor.com, there is growing reason for optimism. In fact, the most recent National Housing Trend Report found that half of all Millennials viewed real estate websites in the last month, indicating high levels of demand. And though tight inventory, rising prices, and saving for a down payment can be a hurdle for young home buyers, many local markets offer affordable opportunities for first-time buyers.

'Millennials were hit the hardest by recession layoffs and job shortages, and many are still facing the financial aftermath of the downturn including reduced wages and depleted savings,' Smoke said. 'Monthly mortgage affordability and 20 percent down payments have become especially difficult as home prices increase. The neighborhoods on our list offer plenty of opportunity for millennials looking to get into the market in the next few months. Not only are first timers more likely to be able to afford homes in these areas, less competition in these markets means they are more likely to have their offers accepted.' 

According to the US Census Bureau in their 2014 study, Salt Lake City had the seventh highest concentration of Millennials. The report says 'This hyper-connected generation was raised on technology, and has robustly contributed to the tech-talented labor pools.'