Prepared for a Homebuying Binge? Millennials Are Ready to Flee the Nest

The number of households in their 30s is projected to increase by 2.7 million over the coming decade.

Jul 13, 2014 at 11:12AM


Source: ITU/Rowan Farrell via Flickr

There is encouraging news for the parents of "boomerang" millennials: Hang on; your children may soon be in a position to move out.

A recent study by Harvard University's Joint Center for Housing Studies is forecasting that millennials -- who have supplanted baby boomers as the largest and most diverse generation in history -- will, by sheer numbers alone, boost the demand for housing. The number of households in their 30s is projected to increase by 2.7 million over the coming decade.

"Ultimately, the large millennial generation will make their presence felt in the owner-occupied market, just as they already have in the rental market, where demand is strong, rents are rising, construction is robust, and property values increased by double digits for the fourth consecutive quarter," Daniel McCue, research manager of the Joint Center, said in a statement.

But parents of millennials will have to wait a little longer. The housing industry has yet to fully recover from the economic collapse and subsequent recession. More than 35% of Americans spend more than 30% of their income for housing.

Millennials, facing a challenging job market and saddled with unprecedented student loan debt, continue to live with their parents, the study further notes. Some 2.1 million more young adults in their 20s lived with their parents in 2013, while student loan balances increased by $114 billion.

Mounting student loan debt will continue to delay homeownership for millennials, the study forecasts. Student loan debt comprised almost two-thirds (63%) of the growth in total debt over the past year and for nearly the entire increase in non-housing debt since 2003, according to the study.

Another key to maximizing millennials' potential to right the housing market is economic growth to the point where incomes start to rise.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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