“We know they’re marrying later, so they’re buying homes later, but that also means they’re wealthier when they buy.” — Toll Brothers CEO Douglas Yearly
As more Americans delay marriage, housing analysts are concerned that delays in matrimony might postpone homeownership, thereby hurting the new-construction sector.
Women are now on average waiting until after reaching 27 to get married, and the average man is getting hitched at 30, according to the U.S. Census Bureau. And younger generations are waiting even longer than ever before to wed.
The trend, however, might actually benefit some businesses, said Toll Brothers CEO Douglas Yearly. Thanks to Millennials’ patience, Yearly predicted more will be able to save and afford high-end homes.
“We know they’re marrying later, so they’re buying homes later, but that also means they’re wealthier when they buy,” Yearly said.
In 1950, the average marriage age for both men and women was 20. In 1980, the average age was 22.
Yearly believes this dramatic ascension in age for marriage will help bolster sales in his target sector: the luxury housing market.
“There are more and more households that make $100,000 [annually] or more, which is our business,” he explained.
“Buying from Our Buyers”
Even if the newly-married population cannot afford his homes, Yearly believes they will help keep the market moving as they form new households.
“If [they’re] not [buying], they’re going to buy the homes from our buyers because while we’re not selling the starter home, that’s in our food chain,” he explained. “We need that to be healthy.”
Despite industry warnings that luxury homes and new construction are likely to suffer in 2018, Toll Brothers is now besting Wall Street’s quarterly estimates.
“The architecture is better [and] the options you can put into the home are better,” Yearly said. “More and more people want new than ever before.”