Older millennials leave big cities and move to the suburbs
The location preferences of young adults hold large consequences for real estate investors. The trend for the past 10+ years has been that the millennial generation (those born between 1981 and 1996) are opting to live in cities more than previous generations and have a strong preference for its amenities such as its walkable access to retail, entertainment, recreation, restaurants and of course employment. However, that trend is starting to shift.
Cities with more than a half million people lost 27,000 residents age 25 to 39 in 2018. While this number is quite small relative the total number of people in this demographic, it is a trend that has persisted in the last four years and is a reversal from the four years immediately following the recession. This drop was driven by residents between the ages of 35 and 39 leaving the city for the surrounding suburbs, which is consistent with historic patterns of families leaving cities for more space and better schools, but remaining within the metro area. Millennials are moving to the suburbs, they're just doing it later than previous generations because they are forming families later.
As the millennial generation follows the pattern of migrating to the suburbs set by their parents and grandparents, how are members of the Bigger Pockets community preparing to supply that demand with housing options that are tailored for the needs and tastes of this group?