OPERATIONS
GENERATIONAL TRENDS
Navigating New Norms THE INFLUENCE OF MILLENNIALS AND GENERATION Z BUYERS IS RESHAPING THE PROPERTY MARKET.
By Jamie Cohen
n recent years, the property market witnessed a new tide of
these generations are proving they can invest in property, often as a result of strategic financial planning and a different perspective on investment strategies. But what’s driving these generations to the property market? The answer lies in their shifting property buying trends. Many are abandoning the “rent forever” mindset and embracing property ownership. They see it as a worthwhile investment and a step toward financial independence. Still, their priorities when choosing a property differ from older generations. They are more interested in lifestyle, location, and work-life balance rather than owning property as a status symbol. INFLUENCE ON THE PROPERTY MARKET Let’s take a look at the preferences for millennials and Gen Zers and how they are influencing the property market. City versus suburban living. Millennials’ and Gen Zers’ preferences for city or suburban living varies, but their choices have substantial implications for the property market. Some lean toward the vibrancy of urban living, attracted by job opportunities, cultural amenities, and walkability. Others favor the quieter, more spacious
suburban life, particularly in the era of remote working. The factors influencing these preferences extend beyond mere housing affordability. They include proximity to work (physical or remote), lifestyle choices, and the search for a sense of community, leading to an uptick in property purchases in urban and suburban areas tailored to meet these preferences. Technology and online platforms. The digital-native Gen Zers and millennials are leveraging technology in their property hunt. Online property listing and buying platforms play a massive role in this shift. These platforms offer the fingertip convenience of virtual tours, price comparisons, and access to real estate professionals. Further, innovative technologies like virtual reality (VR) are reshaping the property-buying experience. Potential buyers can now virtually “walk” through a property from anywhere in the world—game changers in the property market. Sustainable and eco-friendly living. Sustainability is another key consideration for these generations. They are increasingly seeking eco- friendly living options and are willing to pay more for sustainable housing. This preference pushes construction and design trends toward
I
influence as the baton passed from baby boomers and Generation Xers to younger generations: millennials (born 1981-1996) and Gen Zers (born 1997-2012). Their values, priorities, and lifestyles are significantly molding property market trends and dynamics. Among these are their love for technology and their commitment to sustainability. These preferences aren’t just changing how homes are bought and sold but redefining the entire property market. Understanding the influence of millennials and Gen Z on the property market begins with a look at their representation in the current population. Combined, these two cohorts currently make up a substantial part of the global population. Millennials, sometimes called Generation Y, constitute about a quarter of the population. Gen Z, the digital natives, aren’t far behind, as they age into adulthood. Although many millennials have already established themselves in the job market, Gen Z is relatively new to the workforce. They might be early in their earning years, but it’s important not to underestimate their buying power. Despite facing economic challenges like student debt and a competitive job market,
16 | think realty magazine :: july – august 2023
Made with FlippingBook Online newsletter