In Fall 2013 Jones Lang LaSalle published their Cross Sector Outlook. The report shared some very interesting insights into how Generation “Y” is affecting the Real Estate market. Generational trends have taken over many traditional lifestyle expectations and in order to survive markets must adjust to these trends.
Renters Generation: According to the report, recession related credit conditions and increase in interest rates have kept many Gen Y’s out of the role of homeowner. While home sales have increased there is a large percent of investors buying to rent. In addition younger professionals enjoy the more passive commitment of renting verses buying. It is easier to break a lease agreement than it is to sale a house if there is an emergency or new opportunity that calls for relocation. More millennials are drawn to urban communities where space is geared towards business, entertainment and multi-family units with little room for new single family units. Only 10% of millennials live in rural communities while 48% live in downtown and city areas.
Discount Generation: Known for their dependency on technology, it’s no shock that a majority of the time millennials spend shopping is spent using technology to search for bargains. Joining online rewards programs, signing up for text notifications of sales, requesting coupons via email or searching for promotions, millennials are all about getting the best deal. In order to thrive, businesses have to comply with the technical side of business. More establishments have joined programs like Groupon, FourSquare, Twitter and Facebook to appeal to the “app happy” generation.
Home Office Generation: Sitting at a desk for 8 hours a day has become less and less attractive to the new working class. Many companies allow workers to use technology to work from basically anywhere with an internet connection. This is a benefit for workers and employers. Employees who work from home can enjoy a more relaxed environment and save on transportation costs. Employers who employ out of office staff can save on energy costs as well as renting costs. Less employees in the office requires less space and resources.