With the economy improving from the recent downturn, nearly 11 Million new college grads are ready to migrate from their parents’ basements to New York City. The Millennials, those born between the early 1980s and the early 2000s, will soon overtake the Baby Boomer population. This generation is a force to be reckoned with, especially when it comes to NYC housing.
With Millennials comprising more than one in three American adults by 2020 and 75 percent of the workforce by 2025, it’s important to understand their interests and values. Millennials’ interests reside in social concerns and ethical issues. Whether it’s in their daily work or their loyalty to a brand or company, Millennials want to help socially and environmentally. They also tend to connect with others who share similar interests and ideas, whether they’re in the same city or not. Millennials also place a higher worth on experiences over material things, drawing them towards the city life.
New York City, known as the city that never sleeps, ranks as the number one destination for Millennials. Why? Because New York City provides opportunities and signifies a place where dreams can come true. New York City also includes accessibility, culture, diversity, and shopping, along with a thriving social scene, which is precisely what transplant Millennials are looking for in a home city.
The Right Time is Approaching
With the Great Recession over and unemployment rates dropping, the time is almost right for Millennials to make their move into New York City. According to the New York City Economic Research & Analysis’ June 2014 Economic Snapshot Report, the number of employed City residents increased as the number of unemployed City residents decreased.
Despite the fact that the overall economy is improving, there are still certain factors holding Millennials back, including a weak job market for recent grads, student loan debt and payments, and tight lending standards. According to CNN, Millennials will also have to face slow economic gains and a standing wage rate. Because of this, over the next few years, Millennials will trickle into the City.
The Future of NYC
Over the past year, Manhattan has enjoyed a vivacious economy through better job opportunities and an expanding, well-balanced real estate sector, which is a trend expected to continue in the future. While the current housing industry trend is rental, the increase in population, along with limited inventory and increased prices, can change that.
According to Business Insider, although only 20 percent of young adults under the age of 25 are heads of households and homeowners, stronger labor markets and time may move Millennials from renters to homeowners. With the increasingly improving housing market, the impact of Millennials moving out will have a modest and focused effect on the housing industry.
While this Millennial movement won’t necessarily create a supercharged New York City housing boom, they will undoubtedly make their presence known and leave their stamp on the City, all while shaping the future of America.