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The expensive cost of housing in the San Francisco metropolitan area may contribute to the loss of Millennials that perceive they cannot afford to live in this market, according to the new “Bay Area in 2015” report issued by the Urban Land Institute (ULI).
The report determined that 74 percent of Millennials now residing in this market are considering moving over the next five years – and with record high housing prices becoming commonplace, the report added, the Millennials would sooner move away completely than relocate to another corner of the market. Only 24 percent of Millennials surveyed for the report expressed confidence that will be able to own or rent their desired home in five years. In comparison, 38 percent of the Generation X demographic and 49 percent of Baby Boomers felt confident about their housing options for the next five years.
Currently, 34 percent of Millennials currently live in San Francisco region apartments—compared to 21 percent of Gen Xers and 11 percent of Baby Boomers—and an equal percentage of Millennials expect to be living in apartments in the near future, versus 11 percent of Gen Xers and eight percent of Baby Boomers.
“Millennials make up the largest, most diverse generation in our history, and they will have an enormous impact on the success of our cities. San Francisco needs to consider the how declining housing affordability is affecting the high quality of life it is seeking to provide for all residents, including this powerful group,” said ULI Global Chief Executive Officer Patrick L. Phillips. “This means placing a strong emphasis on providing housing for a mix of incomes and generations, and by investing in development patterns to further reduce automobile dependence and promote health and wellness.”
“Bay Area in 2015” is based on a survey of 701 adults in the Greater San Francisco Bay area that was conducted during February.