High Housing Costs Point to Millennial Flight

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%.