A study released today suggests that the millennial generation is poised to move out of their parents' homes in droves, lift the number of new households formed and maybe even transform the housing market, The Washington Post reported.
Harvard University's Joint Center for Housing Studies projects that the millennials - the largest and most diverse generation in history - will make up 24 million new households between 2015 and 2025, substantially boosting demand for rentals and starter homes.
The leading edge of this closely watched generation will soon reach their 30s, the age range in which household formation ramps up, said Chris Herbert, the center's research director. As a result, the number of households in that age group will rise by 2.7 million in the next decade, according to the study, which defines millennials as those born from 1985 to 2004.
"Demographics is destiny," Herbert said. "As millennials gain more of a financial foothold and make their presence felt, they're going to drive a whole chain of increased demand in the housing market."
The sheer number of young adults in this generation (nearly 86 million) is what makes them an especially influential force in the housing sector. The decisions they make about their living arrangements will, by extension, affect the economy, which has traditionally relied on the housing market to create construction jobs and generate consumer spending for everything from dishes to furniture to major appliances.