Millennials are making moves similar to their baby-boomer parents by moving out of their parents’ basements and into their own homes. As millennials begin to overcome debts and competitive job markets, they’re making the decision to live the life their parents had—a house, kids, and a big SUV.
The Study
According to Zillow Group data, millennials (aged 18 to 34) have become the largest group of home buyers, and this correlates to upsizing their vehicles to large SUVs. So, while mid-size SUVs still dominate the millennial car-buying market, larger SUVs are on the rise as this age group begins to have kids. Ford Motor Co. estimates that, in the U.S., sales of large SUVs jumped 11 percent in the first half of 2017, and the company estimates that sales for both mid-size and large SUVs will continue to increase over the years.
The Future
The SUV is particularly suited for growing families. In 2016, overall U.S. auto sales set a new record high of 17.55 million. SUVs played a large part, and their sales are expected to grow by 16 percent from 2017 to 2022. The largest of these vehicles, such as the Ford Expedition and Chevrolet Tahoe, are predicted to show a 25 percent growth in sales in the next five years, according to LMC Automotive.
SUV sales are already booming because of millennials, and it isn’t projected to stop any time soon.
A study conducted by Ford in June concluded that millennials ranked having a family, a suburban home and a big vehicle as being their highest priorities, ranking them over living in a major city or using public transpiration. According to a Ford analyst, over the next 10 to 15 years, there will be an extra 25 million millennials between the ages of 35 and 44 who will be ready to buy an SUV for their families.
Bottom Line
SUVs have become one of the most popular vehicles for growing families. As millennials grow up, get married and begin their families, these buyers will need larger vehicles to suit their needs.
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