The oldest millennials are turning 40 this year. Close to five million turned 30 last year, and 4.8 million are turning 30 each year in 2021, 2022, 2023, and 2024. This puts the millennial generation in the prime of their spending years for home buying, with the older segment “buying up” to larger homes, and the younger segment buying first homes.
The pandemic has created an interesting trickle-down effect - more people working remotely enables workers to move out of urban areas to the suburbs; and lower mortgage rates have enabled buyers to afford more house than they previously could have. According to a Realtor.com housing forecast, millennials currently account for the largest number of residential real estate transactions, and they are often purchasing in the high-end housing market.
This boom in suburban housing purchases is bringing an increase in consumer purchasing related to home ownership, from lawn care to home goods to pet food. One company, Tractor Supply Co., a chain of nearly 2,000 small format stores in 49 states, has seen sales growth of almost 43% over the last year due to this rural migration, according to CNN Business. The article states that company CEO Hal Lawton attributes much of the growth to millennials, based on customer survey data. This data also showed 25% of their customers recently adopted new pets, which Lawton calls “an annuity” for the business as owners continue to care for their pets over the years. To keep up with this growth the company will open 80 new stores this year.
According to the Wall Street Journal, sales at Lowe’s rose 24% last year, the fastest pace in two decades, although the company is forecasting a decline in revenue in 2021.
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