Over the next decade, U.S. millennials will spend significantly more on housing and cars than in prior years, according to experts in investment and consumer trends. Today, U.S. developers of master-planned communities (MPCs) are listening, says Rhett Crocker, president of master-planning leader LandDesign.
“New studies show that millennials, those between 21 and 38 years old, increasingly prioritize ‘necessity spending,’ meaning they’re devoting more income to rentals and mortgages,” says LandDesign’s Crocker. “Our own white paper analysis concludes that many will choose to live in master-planned communities that meet millennials’ preferences for lifestyle, community and affordability.”
The upcoming white paper by LandDesign, to be published later this year, uncovers the unique attributes of master-planned communities that are successfully attracting millennial buyers today. Key findings include robust millennial population growth in the suburbs through at least 2035, especially in areas closer to downtowns.
“Many millennials are looking for an urban experience around a suburban setting,” says LandDesign’s Crocker. “They are attracted to communities that are ecofriendly and walkable, with varied and high-quality outdoor socializing spaces and amenities made for pets and children, as well as multiple transit alternatives.”
In addition to the preference research, the new LandDesign white paper also cites findings by Pew Research, RCLCO and U.S. Census Bureau showing how millennials will overtake baby boomers in population and housing demand by the end of this year. The accompanying shift from discretionary spending to necessity spending boosts their buying power, too, said William Smead, CEO of Smead Capital Management, in a recent CNBC interview, creating a new and compelling reason for MPC developers to move decisively and build to meet millennial demand.
“So, we’ve got 89 million people in between 21 and 38 years old that are about to start their lives, form households, do incredibly economically impactful things,” Smead said, including spending on those “big-ticket items such as houses and cars.”
A national leader in master-planned communities, LandDesign is an award-winning design firm offering planning, urban design, civil engineering, and landscape architecture solutions to public and private sector clients across the globe. With offices throughout the United States, LandDesign effectively creates innovative, buildable, sustainable, and ecologically responsible communities and places. The dozens of award-winning master-planned communities created by LandDesign range from 3 acres to 3000 acres and include Westford, Discovery at the Realm, Baxter Village, Brightwalk, Tysons, Willowsford and Brambleton.