Home is where the heart is and for all Americans owning a home and decorating it and improving it has been an essential part of being an American. However the Millennial generation is now rebelling towards this traditional view held by all and sundry for centuries. This is surely a cause for concern all over, home builders, home decorators and Home Depot especially, who is already going through a rough patch with the biggest cybercrime in history tainting its reputation.
What does the American Census say? The Housing and Vacancy report recently published states that the 35 and below age group is not really interested in purchasing and owning homes. The number has been the lowest this time round since the time when data collection started. This is surely proof enough for the industry specialists to sit down and put their heads together to figure out the answer to this problem which can upset the buying eco system established by many companies like Home Depot (NYSE:HD).
Well, we can’t really blame the Millennials for not purchasing enough homes. As it goes these Millennials are literally buried under student loans. Unless and until that amount has been repaid, there is absolutely no way that they can consider purchasing a house, and neither will they qualify for getting more loans to purchase a house. Home improvement goods come later on, as living with family members or rented quarters doesn’t call for investing in home improvement good as such.
Honestly, after the 2008 Financial Crisis and the property bubble, the home ownership part has been removed from the great American Dream. Leaving many scarred to this day, people have come to realize that purchasing a house and putting all your investment into something as fickle as property in this age is a wrong move. Since this process has been delayed then surely the home ownership has been delayed in turn.
So what the companies being impacted need to do is concentrate on devising a new strategy for the Millennials who slowly but surely will be home owners soon enough. They can target the Millennials who are basically renters on the type of purchases which they would like to make. Home Depot (NYSE:HD) and other brands should start investing in their private label brands because being buried under student loans comes with a price: you have to be seeking a good deal at all times. Showing them value or investing in products like paint will surely get them purchasing as a fresh coat of paint is always the second choice to the Millennials instead of a new home.
The Millennials even though renters are seeking out for a good stress free live and instead of living in the city centers all around the country are concentrating on suburban living. The good life and a good time is as important to them as it was to their parents even if they want a good deal, so Home Depot (NYSE:HD) should make sure they stock up on lawn mowers and BBQ grills!