How Millennials Are Impacting the Construction Industry Part 1
Millennials are hardly a new topic of conversation in the construction industry. We’ve already discussed why they are an imperative part of solving the labor shortage, as well as how to welcome them into the construction workforce.
In this two-part article, we will examine a different area of influence that millennials have on construction: their power as potential homebuyers. In Part 1, our Tallahassee construction lawyers will cover the psychological effects of the Great Recession and millennials’ migratory patterns. Part 2 will delve further into millennials’ financial priorities and address how the construction industry can appeal to millennial buyers.
The Effects of the Great Recession
Most members of the millennial generation were not old enough to be homeowners when the housing bubble burst and foreclosure crisis hit. However, many have memories of the financial devastation it caused their families.
Millennials seem to have a “once bitten, twice shy” mindset when it comes to purchasing real estate, after having vicariously experienced the “bite” inflicted on their parents and older siblings. The idea that a home is an infallible investment may have been held by past generations, but is a sentiment most millennials would consider antiquated.
Millennials on the Move
Another reason millennials are slower to buy is that they tend to move frequently. Millennials are willing to move for a job opportunity and sometimes even willing to move for a love interest. Neither of these motives is unique to their generation. However, millennials are also motivated by factors that held less of an influence on past generations, including:
- Commute times
- New experiences
- Population density (many millennials consider moving from a smaller town to a big city an improvement)
An influx of millennials is an opportunity for construction, as evidenced by Denver, one of our nation’s millennial meccas. As of 2015, millennials made up almost a quarter of the city’s population and almost 36 percent of its labor force.
This millennial migration led to a boom in Denver’s construction industry, most notably its multifamily segment. By May of 2016, the downtown construction projects underway totaled almost $2.5 billion. In 2016, the Denver metropolitan area added over 10,000 net new jobs in the segment that incorporates construction.
Other millennial magnets include Atlanta, Austin, Baltimore, Boston, Miami, Los Angeles, Portland, Raleigh-Durham, Seattle, Silicon Valley, and Washington DC.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.