Millennials' homeownership rate falls

The US Census Housing and Vacancy Report found that homeownership for adults below 35 years old is at its lowest point in recorded history.

According to Forbes magazine, three factors are at play. First, many millennials are burdened with a big amount of student debt. For example, those who graduated in 2014 had an average of $33,000 worth of debt, which is said to be more than twice its amount 20 years ago. As such, it was pointed out that millennials are not the ideal borrowers.

Second, while the generations before the millennials were led to believe that real estate is one of the most secure investments, the tide has turned. The demographic are actually firsthand witnesses of the 2008 housing crash that their parents experienced.

Third, lifestyle and societal norms have also changed. According to the Pew Research Center, only 26 percent of millennials are married at present. On the other hand, when they were the same age as the millennials are now, 36 percent of Generation X and 48 percent of Baby Boomers were married.

With these, the Forbes article suggests that hardware retailers can still entice millennials by a number of ways. One is by promoting their basic household items. Most millennials are renters, who would eventually become homeowners. Home improvement products such as cleaning tools, organizers, paint and interior decorations are seen to attract more millennial buyers. In addition, it was also recommended that brand loyalty should be built at an early stage.

Perhaps not surprisingly, millennials are more frugal than the previous generations. It was also suggested that DIY retailers can once again capitalize on this by offering private label brands. This way, customers can get value for money without scrimping on quality.