The cohort of interest to city planners in North America are Millennials; individuals born anywhere between the years 1981-2000 and are currently in the age range of 18 to 37. These individuals are also known as Generation Y, but more commonly stereotyped as the demanding, overly optimistic, self-obsessed and tech-savvy generation. Millennials account for 86 million people in North America and is the largest cohort size in history. Therefore, it is crucial that we understand their behaviour in order to determine the future of travel in our cities.
So how does understanding behavioural traits of Millennials help us? By studying their traits, we can start to learn the trends and patterns that tell us how they like to travel and the impact they have on transit agencies.
Most interesting to planners - which mode of transportation is dominating amongst Millennials? Are they turning to transit agencies or car dealerships? I wanted to get to the bottom of this. I did some research and based on their behavioural patterns, I can reasonably conclude that transit agencies might just be winning with Generation Y’s. Allow me to explain.
One consistent fact that is being reported about Millennials is their driving habits are declining. Overall, driving has decreased for everyone it seems, but most predominately for those considered Millennials. The chart below shows that Millennials are the most willing cohort to take alternative modes of transportation and least likely to drive.
(Source: CityLab)
(Source: Greater Greater Washington)
Do these findings suggest that Millennials are not as materialistic as their stereotype suggests? As a Millennial I’d like to come to the conclusion, that yes this is exactly what it means. However, I haven’t found any evidence suggesting that Millennials are choosing alternative forms of transportation to save the world or the environment. In fact, this group isn't necessarily riding transit because they choose to, but instead because of the many factors that make it a necessity.
More Millennials are choosing to live in metro areas and are in turn moving away from the suburbs. To provide perspective, 26% of baby boomers live in towns and rural areas where only 14% of the population comprises Millennials. Attraction to the city life explains the decline of cars for this cohort, for the simple reason that choosing transit is their most convenient option.
It’s realistic to say that the more money you make, the more access you have to disposable income that allows you to own and drive a car. If I were to base our big question purely on income, millennials make less money than their previous generations (baby boomers) and are therefore less able and likely to purchase a car. The lower income of Millennials takes the choice out of using public transit when they simply rely on it to get around.
Another well-known fact that unsurprisingly affects the way millennials move: Americans are marrying later in life. The average age of a first marriage in the United States is 27 for women and 29 for men, up from 23 for women and 26 for men in 1990. (The Atlantic) Not only is marriage happening later, but Americans are also waiting longer to have children. The average age is now 26 years old compared to 21. So, how does this affect driving patterns?
The chart below demonstrates that two-person households and households with children own and drive cars more than single individuals.
The fact that Millennials are waiting until later in life to do these two things have slowed their car purchases, Generation Y is actually 29 percent less likely to buy a car than the previous generation (City Observatory) and have in turn increased their use of transit.
But how do Millennials feel about taking public transit? I found an answer to that too…
Zipcar’s annual “Millennial Survey” proves that Millennials have different lifestyles than previous generations, and their beliefs really are synonymous with an increased use of public transit. The survey shows that 45 percent of individuals in this cohort have made a conscious effort to reduce how much they drive and have taken other modes of transportation. One stat I found unsurprising as a Millennial myself, Millennials indicated that the number one item they would give up before their phone, computer, tablet or TV was in fact a car.
Source: (Next City)
It is critical that you, as transit agencies consider this information. With Millennials making up 86 million people, the largest cohort size in history, city planners and transit professionals need to predict what the future holds for this group and how to act in order to retain their ridership.
What kind of technology you should be investing in and offering (real-time tracking, mobile applications), what to charge for faring and what areas of the overall rider experience need improvements are key elements to consider in ensuring success at holding this large, impulsive yet surprisingly loyal generation.
In 2014, 10.8 Billion trips were made using transit, an all-time high in 58 years. I can reasonably conclude that I agree with this statement made by the American Planning Association:
“We do know one thing for sure — a growing population that is open to innovation and is concerned with the environment will only further our goal of making cities better places to live.” Next City
So, does the key to maintaining these numbers and continuing to increase ridership lie within the travel patterns of Millennials? I think so. What do you think?
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