Though I don't necessarily know what it means, I am among the age bracket of those categorized in "Generation Y." I remember reading an article in Time Magazine a few years ago that touched on broad stereotypes of "my generation." According to experts, being part of Generation Y means that odds are I live in my parents' basement, don't have much money, have a decreasing sense of entitlement thanks to recent economic woes and rely too much on my parents for advice and/or finances.
In looking at my peer group, not too many of us are living in our parent's basement (unless it's very temporary) but the rest of the blanket statements and descriptions? Some may be more true than I would like to admit.
Those in Generation Y who have the means to purchase Real Estate must have specific needs and wants that are different than generations before, it stands to reason.
"In Concord Group research, the younger Gen Y respondents (20-24) ... want a big kitchen (though they're inclined to eat out), a garage and some yard space." (Umberger, Mary. "5 Gen Y housing trends to watch," Inman News, July 7, 2010)
That flip comment about living in your parent's basement? It may be more true than many realize.
"The economic picture for Generation Y is depressingly ugly," said Tim Cornwell, a researcher for the Concord Group. In his company's research, 40 percent said they're still getting significant financial help from their families. Thus, they're not likely to begin buying real estate in significant numbers until they hit the age of 35, he said. "For most people in their mid-to-late 20s, (homebuying) isn't even in the conversation," Cornwell said. "Most of us can't afford to buy our parents' houses. Either our preferences have to change or density issues will come up." (Umberger)
The demographics are changing as well for who is buying their first home. Hollywood films used to lead us to believe that homebuyers are married with children, looking for homes in suburbia with a white picket fence.
In Illinois in 2009, 25% of first time homebuyers were single females compared to 25% COMBINED for single males (13%) and unmarried couples (12%). 51% of buyers in Illinois were first time homebuyers which was above the national average. (Illinois Realtor Magazine, "Year of The First-Time Homebuyer," April 2010, page 18)
Nation-wide research suggests that single women comprise 20% of buyers overall which is up 14% from 1995 according to the 2008 National Association of Realtors Profile of Home Buyers and Sellers.
From my own experience as a Realtor who works with many first time homebuyers (and first time single family homebuyers), many of whom are moving from the city to the suburbs, it can be a mentally-taxing experience to leave the bachelor or bachelorrette lifestyle of Chicago living and making the transition to suburban dwelling. Common "must haves" are short commutes to work (or the train) and short access to hot spots such as restaurants, pubs, shopping, etc. Inevitably, however, priorities do tend to shift.
"I think we're more traditional than people give us credit for," Cornwell says. "Those Gen Yers, once they hit 35 or thereabouts, will be having babies and will want to reconcile 'urban amenities' with schools and safety, and the first-ring towns often offer enough of the urban lifestyle to satisfy the need." (Umberger)
Do you agree with the blanket generalizations that describe Generation Y? If you're in Generation Y, like me, what are your priorities in terms of living and lifestyle wants and needs?
Clearly Generation Y is no more able to be perfectly typecast then Generation X and the Baby Boomers above us, though I will remain mindful of the lifestyle differences that Gen Y possess and how that factors into the home buying process. The good news is that I need look no further than the mirror to see a member of the elusive Generation Y.
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