
The Wall Street Journal estimates that, from now until about 2037, roughly 21 million homes in the United States will be vacated by seniors. To put this number into perspective, it's about 25% of the US for-sale housing stock and more than double the amount of new homes that were sold during the 1998 to 2008 housing boom. That number was about 10 million (see below).

This is part of the normal cycle of housing, but in this particular instance, there's concern that the new generation won't be there to backfill these homes, or least not in the same way. For one, there are more boomers than there are Gen Xers. So right away there's a potential gap. But on top of this, the next in line don't appear to necessarily have the same preferences in housing type and location.

As someone who would fall into the 65.9 million birth bucket highlighted in deep mustard (had I been born in the US), I can tell you that I am far less interested in many of the housing products (real estate speak) / typologies (architect speak) popularized by the generation ahead of me. Whether my opinion is representative is, of course, debatable.
Anecdotally, I can also say that I know many boomers who have started making real estate decisions based on the assumption that demand for certain types of housing will be tepid going forward. This is not to say that some of these communities won't be able to reposition themselves if it comes to that. But there is uncertainty.
Images: WSJ


Back in 2016, the United States Postal Service published a report on the public perception of drone delivery in the US. This was nearly 3 years after Jeff Bezos announced on 60 Minutes that Amazon was working on a drone delivery service and that it would arrive within the next 5 years (so by 2019). I think USPS was trying to figure out how to be, or appear, more innovative.
Not surprisingly, the report found that Millennials were significantly more supportive of drone delivery (65%) compared to Baby Boomers (24%), who strongly dislike the idea. Generally, the report indicates that the percentage of people who think it's a good idea declines with every preceding or older generation. Again, I don't find this at all surprising.
But what I did find interesting was that, irrespective of age, respondents were primarily concerned with some sort of "malfunction." This was at the top of the list. Next in line were concerns around "intentional misuse," such as drones being used to transport illicit goods or to spy on people and/or property.
Closer to the bottom of the list was a concern that drone delivery "might make the sky less pleasant to look at." My own view is that visual clutter and noise pollution are critical problems to address here. There's talk of "drone highways in the sky", but how do you really manage the sheer volume of drones that would be needed to service a dense urban environment?
Photo by Goh Rhy Yan on Unsplash

Across the 50 largest metro areas in the US, about 31.9% of millennials -- those aged 18 to 34 -- owned a home as of 2017. And according to recent census data (via the Redfin), only 5 of these cities had a millennial homeownership rate higher than 35%. They are as follows:

The top spot goes to Salt Lake City, which sits at just over 40%. It also has the highest share of businesses owned by millennials at 8.4%. Not surprisingly, the cities on this list all have relatively affordable home prices, with Detroit being the most affordable.
I think you could interpret this list as a bit of a leading indicator for US cities on the rise. Affordability, and walkability, may be the draws today, but as millennials lay down roots, start businesses and earn more money, I am sure we'll see these cities transform even further.