Large SUV Sales Expected to Jump 25 Percent by 2022 Due to Millennials, Study Claims
The massive generation is buying homes and having kids....so they want huge SUVs.
You know how much fun it is to rip on mllennials for not buying houses or having families. Well, guess what: Millennials are now buying houses and having families. According to data from Zillow Group, the 18–34 age group has become the largest group of homebuyers in the U.S. And as they’re shopping for larger living spaces, they’re also shopping for larger vehicles.
According to Carsalesbase.com, the large SUV segment is up 11 percent in the first half of 2017 after seeing a 21.8 percent rise in 2016. That makes it the second-fastest growing segment in the industry, after subcompact SUVs. Research firm LMC Automotive predicts this trend will continue, and we’ll see a further 25 percent increase in large SUV sales by 2022.
And when we say large SUVs, we mean the really big ones. This segment is dominated by General Motors with the Chevrolet Tahoe/Suburban and the GMC Yukon/Yukon XL. The crosstown rival Ford Expedition/Expedition EL comes in second place.
Ford U.S. sales analyst Erich Merkle has some insights about the growth of these lane-hogging barges. (After all, Ford knows what the kids like.) "There's no question people are waiting longer, but people still want to have children," Merkle said according to Bloomberg. "As long as people have children and those children grow and acquire friendships, it requires more space."
"There's going to be an extra 25 million people passing into and through the 35-to-44 year old demographic over the next 10 to 15 years," Merkle added. "That's going to lead to a gradual increase in the growth of large and midsize SUVs that's already starting to happen."
Apparently, young families want a lot more space, because the minivan segment isn’t seeing anywhere near the same growth as large SUVs. In fact, minivan sales are down 12.9 percent in the first half of 2017. Apparently, millennials are much too cool for minivans. (Haven’t you heard? Good fuel economy and the convenience of sliding doors make you uncool.)