Move over mom and dad, junior's taking over the market. Whether they're driving off in hybrid vehicles or sipping on organic soymilk lattes, members of Generation Y are emerging as a consumer powerhouse that is changing the landscape of America. And while most Gen Yers (also called Millennials) consider themselves apartment renters today, they will most likely be inking the contracts on their first homes within the next four years. According to a recent Atlantic Journal Constitution article, "people in their 20s - Generation Y - are changing residential real estate in Atlanta."
The Gen Y group is made up of people born from 1979 to 1996. This generation is about 80 million strong in the United States and represents 26 percent of the U.S. population and are worth $1.6 trillion in earning power, according to the research firm Robert Charles Lesser & Co. The article states that "by 2015, Gen Y will make up more than a third of residents in this country, and their expectations are forcing developers to rethink how projects are designed, built and sold."
What Gen Yers want
Bottom line: Many in Gen Y have little interest in the lawn mowing, cul-de-sac lifestyle that's characteristic of so much of Atlanta. At least for now.
Instead, Gen Y wants high-tech convenience and communication, walkability, green building standards and diversity. They'll sacrifice space, and some will even pay more, to incorporate those qualities into their lives, real estate experts say. This emerging generation is also looking for homes based primarily on location. They're moving toward areas that are transportation-oriented, such as near light rail, and close to social entertainment. Gen Yers desire privacy above maintenance, and the majority of Gen Yers purchase townhomes or condos, rather than single-family homes. They also want amenities that enhance their way of life, such as smart technology in their electronics and appliances. An architectural trend for Gen Yers is a strong private and personal space. And unlike their parents and grandparents, this younger generation has no fear of color. Generally, they can live with the traditional beige walls for a while, but in time, they will paint the room to suit their style. This generation wants untraditional floors plans and flexability in their architecture and decoration.
So what happens when these Gen Yers grow up? Will they pack up their ultra-urban, eco-chic condos and head out to the white picket-fence burbs, just as their parents did?
The Lesser study states that "70 percent do not believe they have to move to the suburbs once they have kids." And "only half are confident they will need a single-family home once they have kids." But unless you have a crystal ball or work as a weatherman, it's hard to predict the future. What the market does know, is this a generation that is beginning to define emerging consumer trends.
Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@homescape.com.
Comments(7)