Millennials present a unique lineup of opportunities and challenges for industries that have largely remained the same over the last half-century. Millennials are often viewed as agents of change who disrupt the status quo and aim to alter tried-and-true trends in consumerism and employment.
The inclusion of millennials in the economy can be polarizing, especially in the construction industry. Millenials are seen as energetic and innovative individuals who prefer cerebral problem-solving in lieu of getting their hands dirty. Will millennials usher the construction industry into the future, or complicate an industry that has remained stable for decades? In this two-part guide, our Houston construction attorneys will attempt to answer this important question.
Millennials are often defined as adults between the ages of 20 and 35. Most millennials are just beginning to reach the age where purchasing a house is becoming a reality. However, not all millennials plan on buying houses like their parents. Pandemic wanderlust has shifted the classic ideology of homeownership in favor of year-to-year rentals that allow millennials to focus on traveling in an attempt to foster a more comprehensive worldview. Opportunity in the global economy moves swiftly, and millennials move with it.
This trend, combined with a shortage of salary jobs for college graduates, has resulted in an increased need for affordable rental housing. Millennials who grew up in households plagued by debt have a tendency to be debt-averse. Therefore, millennials are less likely to make large purchases, such as houses and automobiles, that require long-term commitments millennials perceive as debt.
Reduced Profit Margins
It’s not that millennials don’t want to buy homes, they just want to wait for the ideal time to purchase their first home. Homeownership is still valued. It is viewed as a rite of passage into adulthood and the first step in settling down to start a family. Unfortunately, most millennials face significant financial barriers that bar them from purchasing homes. Student loans, low wages, and rising house prices are a triple threat facing most millennials.
The lack of “starter homes”, houses that are smaller and less expensive, has made it difficult for millennials to purchase their first home. One challenge facing the construction industry is the reduced profit margins associated with catering to millennial needs. The market for starter homes is booming, but if cost-efficient housing results in paltry profits, the construction industry and millennials will be locked in a stalemate until wages increase or the cost of construction decreases.
In part two of this two-part guide, our Houston construction attorneys will discuss the case for millennials working in construction and the role of mobile technology in attracting millennials workers.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.