Suburb-Bound Millennials Choose Large SUVs for Family Vehicles
As an increasing number of young adults begin to form families, they are purchasing larger SUVs at a rapid rate
When it comes to young adults adopting a suburban lifestyle, the tempo may change, but the song remains the same. Indeed, American adults between the ages of 18 and 34 (aka Millennials) have become the largest group of homebuyers in the nation, with nearly half of them buying homes in the suburbs.
Settling in a suburban environment and establishing families of their own, these millennials have started to look for vehicles that match their lifestyle. Their vehicle of choice: large SUVs.
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There are countless stories and studies out there that proclaim that millennials are so radically different than their parents’ generation. Still, one thing that millennials evidently have in common with Boomers and members of Gen X is a desire to start a family.
“There’s no question people are waiting longer, but people still want to have children,” stated Erich Merkle, Ford’s U.S. sales analyst. “As long as people have children and those children grow and acquire friendships, it requires more space.”
Due to economic hardships and a heaping pile of student debt, most millennials have chosen to hold off on starting a family. With the economy in a relatively stable place at the moment, many of those young adults are beginning to have children of their own.
Of course, having kids usually requires having vehicles that seat a family comfortably. Therefore, an increasing amount of young adults are buying large SUVs.
The selection of SUVs is not all that unsurprising. Before forming families, a large portion of millennial drivers got around in compact crossovers and SUVs. Now, with more members of the family on the way, those drivers are simply upgrading to a larger version of their previous vehicles.
During the first half of 2017, large SUV sales increased by 11%, according to Ford. As more millennials start families, the segment is only set to grow faster.
“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 to 15 years,” Merkle said. “That’s going to lead to a gradual increase in the growth of large and midsize SUVs that’s already starting to happen.”
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During the next five to seven years, SUVs are set to grow from 40% of the U.S. automotive market to 45% of the U.S. market. Therefore, don’t expect the growing number of utility vehicles on the road to slow down anytime soon.
News Source: Bloomberg