Estimate the number of millennial home owners in India.

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Estimate the number of millennial home owners in India.

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Estimation

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Break down 2

# of millennials in India = Population between age 25 - 45 years

Break down 3

Population between age 25 - 45 = Total population of India * Pecentage of population between age 25 - 45

Now solve it reverse

Break down 3

Population between age 25 - 45 = Total population of India (1.3B )* Pecentage of population between age 25 - 45 ( 50% )

Population between age 25 - 45 = 650M

Break down 2

# of millennials in India = Population between age 25 - 45 years ( 650 M )

# of millennials in India = 650 M

Point to be noted - This 650 M contains both Males and Females age between 25 - 45 years) .

As in India, it is a safe assumption to consider, almost 99% of them would be married then so basically the Average family size cuts to 2.

In general the average family size in India is 4. But I have not taken average family size 4 because 650M does not contain children.

Break down 1

Number Millennial house owners = # of millennials in India * Average Family Size ( 2 )

Number Millennial house owners = 325M

So there are approximately 325M house owners are there.

ZMCL Product · Answer 2 · 2020-07-21T09:49:16+0000

Let me start with some clarifying questions.

1. Does the home have to be a fully paid off to consider the millennial a homeowner?

Ans: No, they just need to have the title or put a loan on it.

2. Just four-wall stationary homes, not an empty land, no RV/trailer homes?

Ans: exactly.

Solution

Basic facts

India total population: 1350 million (approx)

No of Millennial in India(about 30%): 405 Million (approx)

No of Houses in India: 300 Million (approx)

Millennials have low rates of homeownership

Millennial span: 18 - 36 years

Breakdown

Let segment the Millennial in below age group

1. 18-24 years : 14% of indian population = 1350*14% = 189 Million

2. 25-36 Years : 16% of indian population = 1350*16% = 216 Million

As per Indian culture millennials between age 18-24 are dependent on their parents and are students who majorly focused on their studies and few of them are working so the numbers of millennial homeowners age between 18-24 will be very few. so I would estimate only 1 or 2 percent of the 18-24 years millennian are owned home.

I would like to estimate about 35% of 25-36 years millennials as homeowners as, as per the recent report millennials between 25-36 are very keen to buy a house on there own, and in the next three years about 75% of millennial want to buy home in India.

calculation

Number of millennial homeowners in the India = number of the millennial homeowner between 18-24 + number of the millennial homeowner between 25-36

Number of millennial home owner between 18-24 = 189*2% =3.78 Million

Number of millennial home owner between 25-36 = 216*35 = 75.6 Million

Number of millennial home owners in the India = 3.78+75.6 = 79.3 Million