While attending a recent Urban Land Institute event in Houston, I checked out a presentation on Millennials (Gen Y). Millennials are now between 20 and 37 and represent one third of the U.S. population. They will help shape future real estate development throughout the country.
Prior to signing up for the event, I felt I had a firm grasp on their lifestyles—I felt they mirrored me after graduating from college in 2000. I was sorely mistaken. I’m 38, and I realize that I’m incapable of knowing what these people want. I missed this generation by one year! How could we have wanted such different things in our futures?
At 78 million Americans, they outnumber Baby Boomers. Real estate consultant Deborah Brett and her team, led the session through a number of surveys using statistical breakdowns.Her understanding of this generation can only be correlated to Donald Trump’s understanding of the 24-hour news cycle, Chip Kelly’s understanding of the spread, Switzer and the wishbone, and Belichick’s understanding of cheating.
We must first understand that the Great Recession has had a huge impact on this generation. More than 20 percent still live at home. Presumably, 16.5 million will be moving out soon into apartments. I moved out immediately after college, surviving on eggs and tortillas (among other things). The wine was in a box, the vodka in plastic bottles, and the beer is oddly now what hipsters drink (Pabst/Lone Star). It was the best of times, it was the worst of times.
Most Millennials see owning a home in their future. However, they’re uncertain that housing is a good investment. This is what I keep telling my handyman as I stroke him on average one check per week.
When Millennials do decide to pull the trigger on home ownership (which statistically, only half will) the factors that drive their decisions for choosing a community are fascinating. Of course cost, safety ,and location lead this list. Respondents then choose community character, proximity to family and friends, convenience of shopping, dining and entertainment, followed by walkability. My wife and I are in our first house, and walking this time of year to our closest family member, favorite restaurant, or concert venue would most likely result in death.
Not surprisingly, Gen Y seems to be slowly falling out of love with the automobile. Depending on where they live in the country, many experts have written about the fact that Millennials are driving fewer miles than previous generations. Fewer will own cars and more will rely on Uber, Lyft, and Zipcar. Clearly, none of these people had a Smokey and the Bandit, Cannonball Run, or Blues Brothers movie posters in their room as a kid.
So, we’re going to be led by a more frugal and careful generation that wants to “stumble onto fun” and prefers to leave their car in the garage. Wait a second … I may know this person after all!
You need to read the full report, which you may find here.
Andrew Schendle is director of business development at Hunt Construction Group, an AECOM company. Contact him at [email protected].
