Millennials in the U.S. are playing an important role in the current SUV and crossover boom sweeping the nation.
Zillow Group data has discovered that to match their hunger for purchasing homes, 18-34 years olds are upsizing their vehicles to accommodate growing families.
This year alone, SUV sales across the United States have increased by 11 per cent and Zillow chief economist Svenja Gudell says this has to do with the fact that millennials are now following in the footsteps of their parents by settling down, moving to the suburbs and buying ever-larger SUVs.
“As more people move out of their parents’ basement — and there’s still quite a few living there — we expect to see continued healthy demand for homes. Millennials delayed home ownership, just like they delayed getting married and having kids, but now they’re making very similar decisions to their parents,” Gudell said.
For the moment, people aged between 35 and 44 are the biggest buyers midsize and large SUVs. However, in the next 10-15 years, millennials will pass into this age bracket, helping to sustain and further the raging demand for such vehicles.
“There’s going to be an extra 25 million people passing into and through the 35-to-44 year old demographic over the next 10-15 years. That’s going to lead to a gradual increase in the growth of large and midsize SUVs that’s already starting to happen,” Ford U.S. sales analyst Erich Merkle told the Detroit News.
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