Millennials and the American Dream

Based on a report released by The Demand Institute, Millennials and Their Homes: Still Seeking the American Dream:

  • In the next five years, 8.3 million new millennial (Gen Y) households will form. It is predicted that millennials will spend $1.6 trillion on home purchases and $600 billion on rent.
  • The generation is optimistic: 79% expect their financial situation to improve and 74% expect to move within the next five years.
  • Gen Y wants to own. Similar to other survey findings, 75% believe home ownership is an important long-term goal and 73% believe ownership is an excellent investment. 24% already own their home and an additional 60% plan to buy a home in the future.
  • Looking forward: when they move, they will want more space and they will move to the suburbs to start families.
  • 88% own a car, and they are open to moving locations where grocery stores, restaurants, and retail is within a short drive vs walking distance.
  • 44% do think it would be difficult to qualify for a mortgage, and 69% would consider lease-to-own approaches to home buying.
  • The data is based on a survey of more than 1,000 millennial households (ages 18 to 29).
  • Check out to view the entire report.


Jessica Lautz, Managing Director, Survey Research and Communications

Jessica Lautz is the Managing Director of Survey Research and Communications. Jessica analyzes data and writes annual studies such as the Member Profile, the Profile of Home Buyers and Sellers, and the Commercial Member Profile.

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  1. Know a lot of marketing, survey, poll and economic research institutions – but the “explicit” demand institute was news to me. However, there have been scores of such surveys down the years, starting maybe in the 1920s which had similar results, yet looking at data, not wishful thinking, it often turns out, that there is a “Gaussian distribution” by which a lot of those who would become better off actually end with less assets at age 60 or 65 than many 16 year olds at the same (later) time. Student debt and other demographic and economic data seem to (fore)tel a different story for these age brackets: whereas their parents came out of their colleges relatively debt-free to march into a well-paid job and then begin saving and home-ownership, eventually expecting to be debt-free (mortgage-wise) by retirement (and having valuable retirement packages to boot) the newer generation will come out of tertiary education heavily indebted, their parents often ailing and to be expensively cared for and can hope to be debt-free student-debt-wise at 60 with no (paid-up) home to show for.