Community News

Millennials. We hear the word often and make vague generalizations about what this means to our community, our economy, and our future. The term describes the age demographic of people born roughly from 1982 to 2004 and is often interchanged with "Generation Y." These young adults collectively are considered over-educated and over-qualified for the number of quality jobs available. Furthermore, many of them are fairly far in debt due to the cost of their education. Yet their ability to stay optimistic and keep their faith in finding significant careers is a quality that should allow them to overcome their current challenges and experience fulfillment and prosperity. One of the more intriguing aspects of their early career path is that upon graduation from college, many found themselves without the perfect job or any job. So they chose to relocate to a place where they really want to live and create unique career opportunities or even better start their own companies. This generation is hard-working, full of energy and ideas… and extremely positive. Many new Bozeman start-up businesses are the result.

The millennial group is now larger than the Baby Boomers – outnumbering them 87 million to 76 million – and many of them are in the prime home-buying phase of their lives, which will greatly impact the real estate market. The National Association of Realtor® (NAR) surveys delve further into this demographic to predict what we might be able to expect from them.

Recent home purchases by millennials made up 31 percent of the total residential market in the U.S. The vast majority of these buyers look at real estate as a good long-term investment. They prefer “urban or central city” locations more than other buyer demographic groups.  They also believe they will stay in their home for shorter time periods than the baby boom generation – 10 years versus 20 years. 

One aspect of the millennials’ buying dominance that will be intriguing to follow is how homebuilders adjust to their different preferences. New homes are often built on the outskirts of towns, yet this generation is more drawn to urban homes and also smaller footprints than what builders have been producing. Furthermore, their adversity to taking on a large mortgage means builders may need to adjust their home plans for less square footage and lower entry-level pricing. Technology has always been a part of these home buyers' lives, so other changes such as having a home office versus a formal dining room or a home theatre room instead of a living room will be more common.

Millennials may be the key to increasing the number of first-time home buyers in the national housing market. The economy of the last few years along with much student debt has made it difficult for many to break into the housing market. However, NAR studies did pinpoint the top ten metro markets that best support first-time buyers. These include Austin, TX; Dallas, TX; Denver, CO; Des Moines, IA; Grand Rapids, MI; Minneapolis, MN; New Orleans, LA; Ogden, UT; Salt Lake City, UT; and Seattle, WA. 

A nicely written article in the August edition of Delta Sky magazine shows how Montana might be a great fit for millennials still looking for a place to settle.  “Robust fiber optic network, solid transportation infrastructure, and superior tax climate” are some of the features Montana possesses according to our Governor Steve Bullock, and I believe they are also appealing to this age group. Furthermore, our unemployment rates are below the national average, and CNBC rated Montana as the 5th lowest state in terms of cost of doing business. The City of Bozeman’s Director of Economic Development, Brit Fontenot, describes our town with the terms “aspiration, innovation and elevation,” which are all pretty attractive.

Here in Bozeman, most would surmise that we have a young population based on the prominence of Montana State University and how active a community we live in. Upon looking at research compiled by the University of Montana’s Bureau of Business and Economic Research, Gallatin County (as of 2011 data) has the youngest median age of all the major areas tracked in the state, weighing in at 32.1 years old. Missoula, our other university town, was next at 34 years old. The state as a whole came in at 39.8 years. This data indicates many millennials in our market that may be poised to purchase.

An entrepreneurial spirit and the strong desire to be a part of a meaningful team that makes a difference are two of the qualities millennials possess that should poise them for successful futures. Yet all of the strong data in the world can’t compete with the fact that at the end of the day, Montana’s greatest appeal is still our natural beauty. Those who want to be here, they will find a way to stay. Therein lies the key to entrepreneurship at any age demographic.