Will Low Marriage Rates Sap Future Housing Demand?

Note that this article has been updated to also include some of the private discussions with thought leaders in the past. You can read my final overview of my research into the Millennial generation along with what I predicted and what happened as they matured at this link. While I still speak about Echo Boomers and iGenZ privately, I seldom add new articles to this specific blogspot site. If you're reaching out about a speaking engagement, you can contact me at the research firm SqlinSix.

As an Echo Boomer, I often hear from adults that the lack of interest in marriage among Echo Boomers will suppress housing demand. In fact, a recent study [Update: dead link removed] has been used by some adults as evidence that Echo Boomers will have low marriage rates, and thus a low demand for housing.

First, I've written about the housing recovery and will write more in the future with pertinent economic data. Frankly, marriage rates of Echo Boomers are far less of a concern than the Millennial financial data. This is not a generation that looks prepared to own homes.

Second, female Echo Boomers that are unable to find partners tend to express interest in owning a home later in life regardless of their marital status. Male Echo Boomers, by contrast, do seem satisfied with renting. My point here is that even if all Echo Boomers stayed single (already untrue), and most female Echo Boomers bought homes and most male Echo Boomers rented, you'd still end up with similar numbers for housing demand in the future plus you'd have added rent on top of that. More single men and women mean more demand for housing in general, though this demand will be for both homes and places to rent (apartments, condos, etc).

Remember that a large generation with more single people will require more housing in general of any type.

Third, marriage doesn't equate to home ownership. Although married Echo Boomers I speak with tend to mention interest in owning homes more than single Echo Boomers, a few single Echo Boomers have already achieved home ownership.

Oph Topik: 3 Housing Recovery Denials

Note that this article has been updated to also include some of the private discussions with thought leaders in the past. You can read my final overview of my research into the Millennial generation along with what I predicted and what happened as they matured at this link. While I still speak about Echo Boomers and iGenZ privately, I seldom add new articles to this specific blogspot site. If you're reaching out about a speaking engagement, you can contact me at the research firm SqlinSix.

In the financial industry, we hear a lot about a possible housing recovery. In fact, the trite sell line for housing is, "It's a buyer's market because, pretty soon, houses are going to cost much more." However, in order for housing prices to rise, there must be a significant demand, and I see three major encumbraces to the housing recovery.

1. The Millennial financial data. Remember, Echo Boomers are the second largest American generation in U.S. history. However, from reviewing the data, does it look like they are ready to buy homes?

2. If oil prices continue to remain high, or climb higher, even current homeowners will feel the financial pinch. And Americans, who don't own homes, won't consider adding another financial obligation. With high energy prices, renting provides the flexibility for a person to move where it's close. If they lose Job A, they can move closer to Job B. A person, who owns a home, cannot move anywhere - they are restricted.

3. Uncertainty is dominating the market. Look at the rise of food prices alongside oil prices. If people feel like they won't be able to afford food or energy in the future, they won't commit to homeownership. When I talk to people who are ready to buy homes, they feel financially stable in their lives. If instability and uncertainty continue, people will continue to avoid any homeownership commitment.

3 Solutions For High Gas Prices

Note that this article has been updated to also include some of the private discussions with thought leaders in the past. You can read my final overview of my research into the Millennial generation along with what I predicted and what happened as they matured at this link. While I still speak about Echo Boomers and iGenZ privately, I seldom add new articles to this specific blogspot site. If you're reaching out about a speaking engagement, you can contact me at the research firm SqlinSix.

Millennial Question: Gas prices are killing my wallet. My job cut back salaries, but didn't lay any of us off. With fewer dollars this year and higher gas prices, what practical steps can I take?

Answer

There are five potential solutions for higher gas prices that only involve practical steps. For specific financial advice, seek a financial advisor, as you may have some financial options relative to your work or housing situation that could help you.

1. The most important solution is to adjust all your goals/plans/dreams for high energy prices. Assume, from now on, that gas prices will be ten dollars a gallon. Why do I write this? Because when we prepare for the worst, the worst doesn't surprise us as well as the worst is factored into our plans. Think about how many people would be shocked by $10 a gallon. But if you prepared for it, then you would be ready.

As a pertinent addition to the above, I know several geologists who state that the world has enough oil, but that it's difficult to obtain this remaining oil. In other words, oil prices may rise because it will cost a significant amount of money to obtain the world's remaining oil. Outside of innovation or reduced demand, we may see permanently higher oil prices than the $0.89 per gallon that I saw growing up. In fact, after this oil price spike to $4-$5, I doubt that we'll see a sustainable oil price-per-gallon below $2 for a long period of time.

In the least, I wouldn't be planning for a low oil price going into the future.

2. How can you minimize your travel? For instance, if you commute long distances to work, can you move closer to work? Can you minimize the amount of time you travel - whether to the store, social events, et cetera. Can you consolidate activities - for instance, shop after you spend time with friend by choosing a social location with good stores near.

Remember, what you see now may be the norm.

This is also another recommendation to speak with a financial advisor, who has some tax experience. Ask them if you can save anything here for commute or other activities. You may not have an option, but it's always worth a check.

3. Consider your where and what vision. What do you do? Where do you live? Given the cost of gas, is there a where you live that fits better with what you do? This is a big picture question, but it can carry big weight. I've spoken with many young men who've moved to Asia because they found jobs that paid slightly less than in the United States but with over 80% less of the expenses. When you run the numbers, you realize that those salaries go much further in Asia than the United States.

In addition, Asia has less of a toxic attitude toward young men, so for these young men, this is a double win.

Who Are the Echo Boomers?

Note that this article has been updated to also include some of the private discussions with thought leaders in the past. You can read my final overview of my research into the Millennial generation along with what I predicted and what happened as they matured at this link. While I still speak about Echo Boomers and iGenZ privately, I seldom add new articles to this specific blogspot site. If you're reaching out about a speaking engagement, you can contact me at the research firm SqlinSix.

Millennial Fast Facts

You can read throughout this blog to read information about Echo Boomers, or you can read some highlights. Each piece of information about Echo Boomers also contains an article for you to read the details.

Update: as I frequently caution friends, the internet is not forever. Some of the links no longer exist. Over time, you may see [Update: dead link removed] indicating that the article is no longer around on the internet.

1. Echo Boomers are the largest generation in U.S. History since the Baby Boomers (Generation Y Is How BIG?).
   
2. There are approximately 80 million people (all Echo Boomers, though Echo Boomers officially start earlier) between the birth dates 1982 to 1995 (Generation Y Is How BIG?).
   
3. Echo Boomers are also called Millennials (I frequently use as an adjective) and are part of Generation Y (I frequently use as a title) (Generation Y Is How BIG?).
   
4. Post housing collapse, Echo Boomers hold the highest unemployment rate of any U.S. demographic (Can Echo Boomers Survive the Recession?).
   
5. Echo Boomers are more isolationist than former American generations (How Do Echo Boomers Think?).
   
6. Echo Boomers use technological forms of news (How Do Echo Boomers Think?).
   
7. Echo Boomers favor pragmatic policy over ideological policy (How Do Echo Boomers Think?).
   
8. Among all different political views, Echo Boomers are influenced most by their parents (How Do Echo Boomers Think?).
   
9. A small percentage of Echo Boomers move back in with their parents, and this act is not stigmatized as irreponsible (Do Echo Boomers Just Own or Rent?).
   
10. Echo Boomers think that China will pose the largest problems for the United States in the future (Do Echo Boomers Fear China?).
    
11. Echo Boomers observe religion far less than former generations (Do Echo Boomers Lack Religion?)
    
12. As of 2009, only 21% of Echo Boomers were married (Will Marriage Become A Minority?).
    
13. As of 2009, Millennial median houshold income is $58,620 (How Much Money Do Echo Boomers Make?).
    
14. As of 2009, 54% of Echo Boomers lived in the suburbs (Where Do Echo Boomers Live?).
    
15. Echo Boomers seem less interested in owning their own vehicles than former generations ("No Vehicles Please. We're Echo Boomers.").
    
16. 90% of Echo Boomers over the age of 18 have access to the internet; 75% of Echo Boomers use some form of social networking; 40% of Echo Boomers have no land-line (What Services Does Generation Y Like/Dislike?).
    
17. 40% of Echo Boomers have a tatoo (What Services Does Generation Y Like/Dislike?).
    
18. Echo Boomers value time over money and value relationships over work (source).
    
19. Echo Boomers tend to buy products on the basis of peer suggestions, not advertising or public relations (source).
    
20. Echo Boomers tend to buy smaller houses on smaller lots which are closer to work (What Services Does Generation Y Like/Dislike?).
    
21. Echo Boomers invest half of their money in cash and bonds as opposed to stocks (What Services Does Generation Y Like/Dislike?).
    
22. 82% of Echo Boomers expect to be married for life (What Does Generation Y Say About Marriage?).
    
23. Most male Echo Boomers expressed a lack of interest in conversations about marriage while most female Echo Boomers were more receptive in talking about marriage (What Does Generation Y Say About Marriage?).
    
24. 75% of Echo Boomers stated that they would prefer to be alone for the rest of their life than marry the wrong person (What Does Generation Y Say About Marriage?).
    
25. Median income of individual Echo Boomers is $22,000 as of 2010 (How Much Money Do Echo Boomers Make?).
    
26. Echo Boomers favor more government than other American generations (source).
    
27. If Echo Boomers could, they would drive less than they do now ("No Vehicles Please. We're Echo Boomers.").
    
28. Echo Boomers are more likely to want other transportation options than other American generations ("No Vehicles Please. We're Echo Boomers.").
    
29. Echo Boomers see technology as a way to socialize instead of face-to-face methods ([Update: dead link removed]).
    
30. Echo Boomers are more likely to drive less for environmental reasons than other American generations ("No Vehicles Please. We're Echo Boomers.").
    
31. Echo Boomers use email less than Boomers (source).
    
32. Wireless access to the internet is rising among Echo Boomers ([Update: dead link removed]).
    
33. 33% of Echo Boomers are not covered by a health insurance plan (source).
    
34. Echo Boomers' trust in public institutions is declining ([Update: dead link removed]).
    
35. While some view Echo Boomers as more "leftist" in their views, they do not hold the traditional leftist views ([Update: dead link removed]).
    
36. 52% of Echo Boomers rank being a good parent as a major priority ([Update: dead link removed]).
    
37. Only 20% of Echo Boomers list owning a home as a major priority ([Update: dead link removed]).
    
38. While only 21% of Echo Boomers are married, 34% of Echo Boomers already have kids ([Update: dead link removed]).
    
39. The average Echo Boomer remains at a job for 1.5 years (source).
    
40. 80% of Echo Boomers have used an online service in the past 30 days (source).
    
41. 33% of Echo Boomers have used mobile services in the past 30 days (source).
    
42. 48% applied for a credit card online (source).
    
43. Wealthy Echo Boomers prefer digital online media over Television, radio, and print ([Update: dead link removed]).
    
44. More Echo Boomers are going to college than ever before ([Update: dead link removed]).
    
45. In 2008, approximately 40% of Echo Boomers aged 18-24 are enrolled in college (source).
    
46. The average Echo Boomer spends $30 per mall visit ([Update: dead link removed]).