Goldman Sachs on Millennials

The Millennials – people born between 1980 and 2000 – are the largest generation is US history. The media tends to obsess about them and companies will do anything they can to figure out the magic formula to sell them their products. A couple of things are worth pointing out. I can say with a high degree certainty that millennials didn’t decide that it was all of a sudden super fun to live with mom and dad from 2007 onward. This was due to economic circumstance, not choice. In terms of other paradigm shifts (a very millennial concept…), much is also made of the fact that millennials choose experiences over material goods, and that they choose to share rather than own. This may be so, but we should be careful to overestimate these trends. Often times ‘experiencing’ is cheaper than buying. So is sharing. While services such as Uber are lessening the need for a car, the aspiration among millennials of owning a home is still very strong, which has very positive implications for the recovering US housing sector.