Millennials Growing to Want Single-Family Homes in Suburbs

I have good reason to be interested in the economic trends of millennials. I am one. What many people don't know is that they should also be concerned about how generation Y earns and spends. Millennials are a generation of 70-80 million, which is larger than the other greatest generation; the Baby Boomers. Because our generation is so damn big, our financial decisions do have a large impact of the greater economy of the US and the international economy. Many savvy companies and industries have taken notice and begun tailoring their products, marketing and financing of products to please millennials. Until recently, studies have shown that millennials much prefer to live in urban environments and will sacrifice space to gain immediate access to mass transit and urban centers. In most cases, gen Y-ers tolerance to living in compact spaces are incomparable to other American demographics. Many builders and developers caught on to this preference years ago and began building and renovating with our generation in mind. These individuals were building up or repurposing industrial buildings to lofts or similar units. However, according to Wall Street Journal's, "Millennials Prefer Single-Family Home in the Suburbs," a new trend is taking precedent. A recent study by the National Association of Home Builders shows that a staggering 66% of people born after 1977 prefer to live in the suburbs. This is quite a shift from the preference of just a few years ago. It isn't surprising, though. Our generation has had it pretty rough (FINANCIALLY!) due to the recession, housing crash and inflation of higher learning costs. Those of use who are lucky enough to qualify for financing, likely do not want to "get mortgaged up" to a tiny apartment that is reminiscent of the dorm rooms that many fought to escape.  Furthermore, we are not dumb. When you compare the prices of a small 1.5 bedroom unit in a city center to a 3 bedroom house in a surrounding suburb, you'll see that the prices are usually similar! The smart money is on the bigger house with more room to stretch. Especially if you have a 30-year mortgage and the housing market crash is still fresh in mind. The real shame here is that most millennials will continue to have difficulty qualifying for financing because of their debt-to-income ratio. A lot of young people do quite well financially. However, many of them have a disproportionate amount of debt from student loans. When a lender looks at their ratios, they will likely find them to be a "risky" lendee, despite their income. If we were to work out some sort of student debt forgiveness program, I guarantee you that home ownership amongst this generation would increase substantially. And a strong housing market has been and always will be the strongest indication of a healthy economy.