When my wife and I moved to Portland at the end of 2014, we knew it was going to be a fun adventure, but we did not know if Portland was going to be our forever home. We rented for a year, then bought a home which we owned for about a year, then moved to California. It turns out, we are not alone. The trend for “vacation moves,” moving to a city for an extended period but not looking at it as a forever home, is on the rise thanks the Millennial generation.
Moving company Mayflower has a unique view into moving trends around the nation, and recently shared an analysis of top moving destinations and trends. Vacation moves are just one interesting fact we can pull from this study. Read on to learn more.
Top Destinations for Millennials on the Move
The top cities for Millennial moves are not a surprise to anyone who spends a lot of time reading real estate news. The top three are tech hub San Francisco, the sunny beaches and glamor of Los Angeles, and exciting Washington, DC. The entire top ten list is:
Some of these destinations are hot, but expensive, cities for real estate with job markets that make it easier for educated Millennials to find work. But some locations, like Dallas, Houston, and Atlanta, offer better affordability with plenty of job opportunities.
One clear trend here is that Millennials are moving to cities. Bigger cities are more popular destinations than smaller ones. While cost is influencing some cities on the list, expensive destinations like San Francisco and New York still reign supreme with spots in the top ten destinations.
The Millennial Vacation Moving Trend
According to study results, 74% of Millennial movers moved to a new city with a timeframe in mind. The reasons to move are diverse but not surprising, and include a new job (66%) and a new lifestyle or experience (30%). 41% of Millennial movers plan to leave the city at some point, and 53% say that they plan to make a temporary move at some point in the next five years.
This trend has massive implications for the real estate industry. As of April 2017, Millennials are the largest demographic in the United States, recently having surpassed Baby Boomers, which are 75 million strong, and about 10 million ahead of Gen X with a population of 66 million in the United States.
If even a small percentage of Millennials move in the next five years, they can have a big impact. With over 50% of Millennials planning a vacation move in the next five years, the rental and home buying markets should brace for a flurry of activity ahead.
Searching for a Place to Settle
While Millennials are excited for a vacation or temporary move, they want a permanent home as well. 87% of Millennials surveyed shared that they plan to settle down in their current city or find a city to live in permanently. That means vacation moves are a shorter-term idea, and not something Millennials plan to do forever.
Millennials are currently 18-35 years old, and 78% of Millennials indicated that they plan to settle down by age 35. This is another fascinating data point, as it shows that Millennials may be responsible for plenty of moves and real estate activity in the coming 10-15 years, but it will slow down as Millennials age and start to look for a forever home.
How Agents Can Capitalize on the Vacation Mover Trend
Only 27% of Millennials in the survey said they will have a permanent home before they turn 30. This gives a wide-open window for agents to help Millennials find homes. Most say they plan to settle when they find a dream job, dream home, or get married. If you know Millennials doing that today, those should be your target real estate clients!
In the meantime, agents should make themselves easy to find and work with for Millennials. That means a great website, taking advantage of technology and digital communication, and content marketing. If you play your cards right, you’ll be the next millionaire agent. It just takes a combination of the right clients, the right location, and the right time. If you are located in a top ten city for Millennial moves, you might just hit the jackpot.