Younger Americans Aren’t Moving Like They Used To
Millennials have been charged with ruining everything from dinner dates to golf, says Trulia, San Francisco, but are they also to blame for America’s low mobility rate?
No, said Trulia Housing Analyst Alexandra Lee in a new commentary (https://www.trulia.com/blog/trends/why-millennials-move/). But their reasons for moving in recent years are changing, she said.
“Other than a spike in moves by young adults in the 1970s and 1980s–when the Baby Boomer generation started forming their own households–the proportion of moves made up by each age group has stayed relatively constant,” Lee said. “This suggests that the reasons behind millennials’ recent low mobility are not generation-specific. Mobility rates have steadily declined in the last decades, proportionately across all age groups.”
The Census Bureau reports Americans are moving at historically low rates. In 2017, 34.9 million Americans changed residences, translating to a household mobility rate of 10.9%. That’s the lowest mobility that the U.S. has seen since the Census Bureau started keeping track more than 50 years ago.
In 2017, 38.4% of 18-34 year olds lived with parents or other relatives, up from 28.7% in 1962. Lee noted when compared with older generations when they were the same age, millennials move at much lower rates.
“However, that narrative clouds the real story–that mobility has decreased across all age groups,” Lee said. “For the millennials who are moving, they’re moving more to strike out on their own rather than for traditional reasons such as getting married.”
Trulia analyzed the reasons why people move, with an eye toward what sets millennials apart and how the young cohort is changing. If reported the following findings:
–When broken out by age group, the composition of movers has remained consistent over time. “Mobility among millennials is at an all-time low–but that’s true for everyone else as well,” Lee said.
–Marriage is less of a reason to move: younger Americans today are nearly twice as likely as they were in 2000 to move out to be on their own as opposed to marriage being a primary reason.
–Young women are closing the gap for job-related moves. While job-related moves for young males has remained consistent over the last two decades, young women moved for jobs at a rate 5 percentage points higher in 2017 than in 2000.
–Millennials are rebounding from the effects of the recession, moving for positive reasons–such as to own instead of rent, or for better housing–at higher rates, and moving for negative reasons–specifically, for cheaper housing–at lower rates.
“Given these positive post-recession signals and shifting tastes of millennials, we can expect housing demand to change as well,” Lee said. “Since the recession, more moves have been into starter and trade-up homes, as evidenced by increasing shares of moves to own instead of rent, and for better housing. At the same time, millennials are looking for a place to call their own–spouse-free. This demand could put even more pressure on smaller, starter homes.”
While these trends spell trouble for prospective homebuyers, Lee said, a look back on 2017 new construction offers some hope. “Last year was the best year for homebuilding activity in a decade, meaning 2018 should see increased growth in single-family construction and inventory,” she said.
