Driving through any subdivision or neighborhood even just 10 years ago one would notice perfectly manicured lawns with landscaping surrounding patios and sidewalks. Lawncare and landscaping was, and continues to be for some people, a point of pride. However, in recent years, the landscaping industry is in decline.
This is not the only business that is changing though; concepts like starter homes and dine-in restaurants are becoming less profitable. Some economists and experts attribute this to millennials growing up. Every year millennials become a larger part of the general market for products and services. Because of this the services and products the majority of people buy is changing.
Millennials are now in their late 20s and 30s and they are buying homes. The difference between them and older generations is they are waiting longer to buy and are renting longer. They aren’t having “starter homes.”
Spencer Rascoff, CEO of the app Zillow, said, “As a result of limited starter-home inventory, millenials are renting longer. And when they buy their first home, they’re buying a much nicer home than a prior generation.”
Waiting longer to buy is contributing to the decline in interest in landscaping before buying.
Another industry that is experiencing change due to millennials becoming a more important chunk of their market is dine-in restaurants. According to Business Insider, casual dining chains like Applebee’s and Buffalo Wild Wings are facing restaurant closings and sales slumps. Millenials are more inclined to cook at home or have food delivered than older generations.
Millennials altering markets isn’t all bad news. According to Market Watch, gyms, coffee and live entertainment is all better off with the new consumer pool.
From 2004 to 2013, gyms have been decreasing overall in revenue, but in the past six years this has reversed.
According to Charles Schwab’s Modern Wealth Index, 60% of millennials admit to regularly spending more than $4 on coffee, while only 40% of Gen X and 29% of baby boomers admit to the same. Additionally, 73% of millennials are still willing to spend money on a live event, compared to only 65% of generation x and 55% of baby boomers.
While millennials have been accused of killing many industries, and it is almost always shown in a negative context, the markets are just changing as consumers’ interest are evolving. Markets have always fluctuated and will continue to do so when the millennial generation is no longer the main consumer. One day, they may blame the next generation for killing the coffee industry or live entertainment.