In 2016, I said that once the millennials (born between 1981 to 1996 or aged 22 to 37) came of age (had jobs and started to buy cars, houses, furniture, and started a family, etc.) the economy and the housing market will boom.
And in the US, the housing market is booming. Millennials are driving the home-buying market more than any other group.
In the US, there are 76 million millennial first-time homebuyers who are entering the housing market now. Compare that to 75 million baby boomers who are retiring (born between 1946 to 1964 aged 54 to 72).
In Australia, the Millennials represent around 6.2 million which is larger than the baby boomer numbers at 5.5 million.
Just as the baby boomers made a significant contribution to the economy after WW2 due to their sheer numbers, the industrial revolution– where the production line made goods cheaper like cars, computers, phones, and household good– made an impact too.
The combination of the largest population, together with an industrial revolution produced one of the largest economic activity and wealth creation throughout the next 70 years. The millennials will become a bigger group than the baby boomers and are coming of age so they will create the same level of activity as the baby boomers did when they came of age. Coupled with the explosion of the megatrends in technology, internet of things, artificial intelligence, and robotics, they will drive the economy and the property market for many years to come.
Yes — despite the media predicting a recession, low-interest rates coupled with the largest generation in history coming of age together with the megatrends will drive housing even higher.
Be ready for the ride.
P.S. However, not every property will boom. Select the right property in the right area for the right demographic.
P.P.S. Ask for expert help.
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