Surprise! Millennials Becoming Their Boomer Parents: Buying Cars And Moving To Sunny Suburbia

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Dispatches from the goldfish bowl

Not long ago, big city media commentators were opining on the impending demise of the auto industry. Serious publications discussed the implications; even the New York Times pondered whether the end of car culture was imminent.

This was partly linked, so the thinking went, to a resurgence in walkable downtown living and a rejection of suburban sprawl. Lofts and bistros versus tracts and strip malls.

The chief heroes – or villains, depending on one’s point of view – were the Millennials. Late adoption of drivers licenses, low vehicle purchase rates, increased use of bicycles, trains and buses, and interest in start-up car-sharing services were all cited as omens.

Google BicyclesSome observers were giddy at the thought of a cool new world with fewer cars.

It would be a kind of Google campus/Manhattan blend. If not walking or biking, a variety of transportation options would shuttle people from home to work to happy hour at trendy tapas bars.

Goldfish Bowl LeftAt least, this was the view from inside the goldfish bowl of the northeast corridor cities and San Francisco – places where think tank and media folk can actually travel inside the urban bubble without a car. However, out in the vast hinterland between the Hudson and the Golden Gate, we pragmatists were not convinced.

Coming from Boomer-world, where a car was a rite of passage – and one equipped with an FM radio cost extra – our own analysis pointed to other factors; stricter student driver rules, sky-rocketing insurance costs, hefty college loans and high unemployment rates among the young. And with many still living with parents, a family car is always available.

Sure, the automotive industry will evolve – it always has – and big city congestion is real. But we resisted the temptation to cry Carmageddon, and advised clients to give the newbies time to adjust. Wisely, as it turns out.

Millennials morphing into their Boomer moms and dads: buying cars and moving to sunny suburbia

The latest J. D. Power data on new vehicle buyers reveals Millennials accounted for 27% of U.S sales in 2014, up from 23% in 2013.

Even though Millennial cachet has been enhanced by generational age range slight of hand that co-opted millions of proud Gen Xers, the big picture remains clear: buyers under 35 are beginning to enter the new car market in greater numbers than solons who ride in Yellow Cabs thought possible.

Population Growth By January TemperatureOne such, Derek Thompson, a senior editor at The Atlantic, confessed he may have misjudged reluctance by the Boomers’ kids to get behind the wheel (April 21, 2015).

In an earlier piece he also noted the five cities with the greatest in-migration since 2010 are all in the west and Sun Belt, where surging suburbs and sun-bound relocations are driving growth at surprising rates. Thompson also shared a telling New York Times chart comparing population growth and average January high temperature.

These “surprising” trends were mainly surprising where little cable cars climb halfway to the stars and one can take the A Train. But clickbait is not the same thing as common sense and a proper reverence for Mother Nature.

Mission Impossible

Millennials are finally marrying, gaining financial traction and setting up households in places they can afford and having toddlers of their own. Maybe they now see their Boomer moms and dads in a more sympathetic light. We live in hope.

So, why the meme of an urban, car-free Millennial future? Jed Kolko, chief economist at real estate authority Trulia, told the FiveThirtyEight columnist that earlier stereotyping came from … “Your typical young, elite-media-outlet journalist” who was likely to be living “in the city.”  Got it: goldfish bowl.

Americans over 50 buy more cars than Germany plus the UK. Again! 

Reaction to the J. D. Power data on car-buying Millennials was predictable: even greater adulation showered on this over-adulated generation. But the BIG story attracted little attention: Americans aged 50+ bought half of the 2014 total (49%), 6.9 million new vehicles – far more than in Germany and the UK combined (5.5 million).

Light duty vehicle sales _50 plus vs Germany_UKIt’s not like this is news. The data from previous years also showed buyers aged 50-plus account for around half the new vehicle market.

However, global automakers routinely ignore American Boomers while spending gazillions of dollars to win fewer sales in Germany and the UK.

Although car companies claim to be super-competitive, when the rubber hits the road, Boomers seldom see themselves in ads.

The official rationale – fossilized back in the Mad Men era – is that we are no longer willing to adapt or switch brands. Huh? Is VW still be the #1 import; do Cadillacs still jam up the parking lots? Do we still ferry our precious cargo to family night at the drive-in movies in station wagons?

Now that our Millennial children are finally following our footsteps, maybe Boomer trendsetting credentials can re-visited. And that’s our USP, helping adland disruptors escape the fishbowl and engage America’s most adaptable generation.

We’re definitely worth a click: the 50+ consumer space is is 111 million strong, controls 80% of the nation’s household assets and is the world’s 3rd largest economy after the U.S. itself and China.

Opportunity Goldfish

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