I’ve been doing some consulting work with a financial professional who bases much of his economic forecasting on demographics. That drew my attention to this article published on “Echo-Boomers” or the children of baby boomers. Given the current state of the economy, I thought I’d share some potentially good news about the economic future of the United States with you. Here’s an excerpt[1] (emphasis added):
There are many names for the Echo Boom generation: Gen Y, Generation Next, Net Generation, Millennials, Boomerang Generation and Trophy Generation, to name a few (OK, several).
Regardless of what you call them, the members of this generation are quickly coming of age; some are even starting to enter the housing market and there are many, many more to follow.
Echo boomers were born roughly between 1982-95 — they are largely the offspring of baby boomers.
Fast forward to 2010. There are approximately 76 million echo boomers between 15 and 28 years old, making them second in size only to the baby boomers (age and population figures cited here represent an approximation based upon information found in studies done by the National Association of Realtors, current U.S. Census data, Wikipedia, and various media sources).
According to current U.S. Census figures, 67.2 percent of this generation can be expected to become homeowners by their mid 30s, which equates to just over 35.5 million households (U.S. Census homeownership rates are calculated based on households, not people).
The National Association of Realtors’ 2009 Profile of Home Buyers and Sellers predicts that of this 35.5 million, 21 percent will be single female buyers, 12 percent will be single males, and 61 percent will be married couples or partners (couples/partners are counted as a single household).
It’s worth pointing out here that the aforementioned U.S. Census figures also state that since 1982, homeownership rates have fluctuated very little; anywhere between 64 percent and 69 percent during this 28-year span.
And this on the Echo Boomers from CBS News[2] (emphasis added):
If you’ve ever wondered why corporate America, Hollywood, Madison Avenue and the media all seem obsessed with the youth culture, the answer is simple.
The largest generation of young people since the ’60s is beginning to come of age. They’re called “echo boomers” because they’re the genetic offspring and demographic echo of their parents, the baby boomers.
Born between 1982 and 1995, there are nearly 80 million of them, and they’re already having a huge impact on entire segments of the economy. And as the population ages, they will be become the next dominant generation of Americans.
The oldest are barely out of college, and the youngest are still in grade school.
And whether you call them “echo boomers,” “Generation Y” or “millennials,” they already make up nearly a third of the U.S. population, and already spend $170 billion a year of their own and their parents’ money.
Almost none of it is spent on boring things like mortgages and medication, and the world is falling all over itself trying to sell them things.
What brands do they love? Sony, Patagonia, Gap, Gillette, Aveda.
Only a small percentage are eligible to vote, yet they are already one of the most studied generations in history — by sociologists, demographers and marketing consultants like Jane Buckingham of the Intelligence Group.
Buckingham uses focus groups to gather information for clients such as NBC, Chanel, Nike and Levi Strauss.
Echo boomers are a reflection of the sweeping changes in American life over the past 20 years. They are the first to grow up with computers at home, in a 500-channel TV universe. They are multi-taskers with cell phones, music downloads, and Instant Messaging on the Internet. They are totally plugged- in citizens of a worldwide community.
It will take some time, but as the echo boomers grow up and spend more money, the consumer spending dependent US Economy will revive, probably strongly given there are 80 million of this wave of boomers.
[1] Scott, J. Lennox. April 21, 2010. “Echo boomers: They’re heeeerree…” http://www.inman.com/news/2010/04/21/echo-boomers-theyre-heeeerree
[2] Leung, Rebecca. February 11, 2009. “The Echo Boomers.” http://www.cbsnews.com/2102-18560_162-646890.html?tag=contentMain;contentBody
