Millennial Movement from Cities to Suburbs

Since the turn of this decade, realtors have been tracking a continuous trend of young people moving from the cities to the suburbs. In fact, The United States Census Bureau found that half-a-million Americans ages 25 to 29 moved from cities out to the suburbs in 2014. A Zillow report also found that nearly half of millennial homeowners now live in the suburbs and accordingly, have become the largest group of homebuyers. Young people ditching subway rides and crowded sidewalks for driveways and a backyard has led to thriving suburban real-estate business. So why is it the city is out, and the suburbs are in?

Money, Money, Money

Most millennials are leaving bustling cities in search of a better quality of life, a quality that they believe they’ll find in the suburbs. One of the main motivations for this migration seems to be financial stability. The increase in student loan debt and a strong real estate market has made it more challenging for young professionals to maintain ownership of a city dwelling lifestyle. The greater Boston suburbs tend to provide buyers more value for their dollar square footage-wise, offering nicer homes and more space for the same price. Alleviating some of that financial stress seems to be enticing millennials to make the big move.

The ‘burbs’ are hip!

Millennials are interested in everything trendy, from cold brew coffee to hot yoga, and these are the types of businesses that usually reside in the city. However, many suburban MetroWest towns like Weston and Wellesley are beginning to mock the city lifestyle – becoming more ‘hipified’ to attract a younger crowd. They’re opening more contemporary restaurants, boutiques, and spas that will satisfy millennials’ “urban” cravings.

And how can the suburbs plan for the surge in new millennial homebuyers?

Waiting for the right time

Trends indicate that millennials are now refraining from immediately buying starter homes when they can, and saving money for a dream home where they feel they can really settle down. Since this populace faces a lot of uncertainty early in their careers – when a job opportunity could make them relocate, or they’re unsure of some major life choices – they don’t want to commit to a mortgage too early on. They are also unsure of whether their future partner will want the same style of house they do, or how many children could fill their family home. Many want a solid career footing with a long-term job prospect, and a family plan before purchasing a home. Those who finally commit will build or buy their dream “forever” homes when they feel ready, rather than settling for a home they might trade up in a few short years.

The right time is NOW!

Now that the millennial generation has achieved the age, maturity, and financial stability required to settle down, there’s been an increase in first-time buyers and their demand for homes. The U.S. Census Bureau reports the nationwide homeownership rate was more than 60%, as of 2018. Suburban home sellers with spacious, family homes should target older millennials looking to settle down, while suburban home renters should target young millennials still looking to save money. Shifting migration trends and high city real-estate prices have created opportunities for everyone in the suburban market, whether it be sellers, buyers, or renters!

No matter where you fall into the equation as a buyer or seller, it’s smart to be conscious of shifting demographics and changing home ownership trends when you embark on your own real estate journey. If you do so, you’ll be ahead of the game and living your best life in a property that suits you for the long haul.

Amy Mizner is a principal at Benoit Mizner Simon & Co. Real Estate. The company's five offices are located in Wellesley, Weston, Natick, Needham and Sudbury.