In my last post I reported the hopeful news that, according to a Washington Post article, the Millennial generation, hard hit by the recession, is finally moving out of their parents homes and starting their own families.
Loaded down with big college debt and no job prospects upon graduation, Millennials had to put their family formation on hold. Now, according to a Harvard study, they are starting to get jobs and as a result we are going to see a slow but steady resurgence in housing construction.
Why is this good news for the Play Industries? A demand for new housing will create jobs to build those houses. As a result more and more people will have the income to create new families and thereby create a virtuous cycle of increasing family units.
We in the Play Industries love family formation because it drives the sale of toys, video games, trips to Disney World and on and on. We can look forward, hopefully, to a steady but slow growth in our child population.
There are going to be challenges. This generation has massive college debt and they are going to have to pay that debt off which could slow mortgage growth and the decision to become parents. Never-the-less, this generation will eventually overcome as have former generations.
In the meantime, let’s take a second and smile…it’s been a while.