SAN FRANCISCO—The Bay Area is at risk of losing Millennials in the years ahead, as high housing costs are making them increasingly unsure about the ability to move into homes in the livable neighborhoods they desire. In addition, one-third of the respondents from the South Bay, which has the largest number of Millennials, say they are not satisfied with local housing options. The low expectations of Millennials in the Bay Area are in stark contrast to Millennials in the country as a whole, where 52% said they anticipate being able to purchase or rent their desired housing in five years.

The report, which was released at the ULI Fall Meeting finds that 74% of Millennials living in the Bay Area are considering moving during the next five years, away from the area rather than within it. Just 24% are very confident that they will be able to own or rent their desired home in five years, a dramatically lower percentage than Gen Xers, 38% of who voiced strong confidence in their ability to move up; or Baby Boomers, at 49%.

Another possible indicator of housing affordability challenges for the Bay Area's youngest adults point to 34% of Millennials who currently live in apartments—compared to 21 percent of Gen Xers and 11% of Baby Boomers. An equal percentage of Millennials expect to be living in apartments in the future, compared to just 11% of Gen Xers and 8% of Baby Boomers.

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Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.