supply chain; stakeholders clinging to outmoded systems, like print doc- umentation that provides safeguards against obsolete compliance re- quirements; individual interests like self-preservation and job security; or vendors lobbying to impede progress to maintain market share. As we have seen though in recent months, caused by the COVID-19 pandemic, rapid and jolting chang- es in trends are possible when a compelling reason exists for involved parties: renters, landlords, inves- tors, lenders, regulators, and even elected officials. Additionally, tragic occurrences have demonstrated how trends can be created by an imme - diate groundswell caused by the “voice of the people” wanting a say in how our elected officials implement public safety policies. HISTORY IS INTHE MAKING We are in a sea of change. Old trends are disappearing with new ones taking root, with these com - pelling causes pushing us in the direction of favorable change, which will endure. We are adapting. Surely, 2020 will be remembered as a “year of change” because of the impact of national and global events. Some will undoubtedly have trouble accepting these new ideas and ways of life as the “new reality.” Others think nothing of it — the simple act of wearing a face mask to prevent the spread of disease is now routine behavior. “Zooming” is now to video calls what “Kleenex” is to tissues or “Google” is to internet searches. But what about our industry? What can real estate investors and property managers foresee from not just the current upheaval, but also
the ongoing trends that began before 2020? Let’s first look at who will be driving these trends. Just as the Baby Boomers—those born in the post-World War II era between 1946 and 1964—influenced societal and industry changes for decades, the two upcoming generations, Millenni- als (born in 1981 through 1996) and the subsequent Generation Z (born 1997 through 2012), will play large roles in not just changing trends but in dictating the pace at which those trends change. OUTWITHTHE OLDAND IN WITHTHE NEW You’ve already likely seen their impact: they’ve challenged the “old ways” of thinking, not only of them- selves, but of others. And they have increasing economic and electoral power, which will have increasing influence in the real estate sector. According to Pew Research, Cen - sus data in the United States reveals 71.6 million Baby Boomers. As of 2019, the number of Millennials, 72.1 million of them, is larger than the Baby Boomer generation. What is more? Generation Z outnumbers them both with a population of 90.6 million, which represents ~25 per- cent of the population in America. Of course, with numbers comes influence. Boomers made a lasting mark on our lifestyle, culture and politics, as Millennials are starting to do now. As they age, Millennials are increasingly taking leadership roles in business, government, and public service. While the little-discussed GenX (1965-1981) leads in disposable income, Millennials are coming into their prime earning period.
subsequent ubiquity combined with ease of use will aid adoption in the consumer market. Prospective renters will also change the trends on what they de - mand from the property. Remember: this is a generation that grew up with smartphones in their pockets, giving them 24/7 access to the internet through Wi-Fi or over-the-air data. In decades past, renters may have wanted multiple cable TV access, phone jacks in every room, or (God forbid!) ISDN wiring. Some of us can even remember the days of rotary phones, cell phones the size of shoe boxes, and then “high-speed” 2,400 baud dial-up modems. Within our industry, companies adopt technology slowly for many reasons: a complex, multi-organiza- tional, self-interested and fractured
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