Millenials aren’t buying cars or new houses. Derek Thompson and the Atlantic staff have written several articles on this topic in the past couple of years. In the latest article, they recount the stats on home and car ownership for the 20-something, early 30’s age group. “The homeownership rate among adults younger than 35 fell by 12 percent, and nearly 2 million more of them—the equivalent of Houston’s population—were living with their parents…” They eventually want to own a home, but in a smaller city with a walkable downtown. Same goes for cars.
Now, why are millenials not buying homes and cars? Is it about consumer preferences — they don’t want to live in suburban sprawl — or it is because they can’t afford those items? Thompson says it’s probably a mixture of both.
I’m not entirely sure that tastes have changed that much. Yesterday, I went to two birthday parties and ended up talking a nice subset of millenials. One woman just moved out here to the suburbs from New York City, because she wanted a backyard and good schools for her very young children. Later in the day, I talked with four other young people who were firmly commited to urban living, but they didn’t have kids yet. Tastes change when children arrive.
I think that tastes in cars have changed over the decades. I hate spending money on transportation. One of our cars is 1997 Toyota Corolla, and we’ll keep driving it until the bottom rusts out. I would much rather spend money on travel and entertainment than a car.
Thompson and the guys for Vox have written a lot about their own preferences for walkable downtowns, bike paths, denser developments, and public transportation. Truthfully, I like those sorts of living arrangements, too. If you throw in good schools, I would live in that millenial utopia, too. The trouble is that they don’t really exist in this area. Local towns actively block the new construction of apartments and townhouses. Not that there is much space for those buildings anyway. There is no support for a massive investment in new public transportation systems, which are incredibly costly.
Local politics and fiscal realities will undermine the millenial utopia. It’s too bad, because I would like to ride my bike to the supermarket.