08 September 2021
The relationship that young generations have with the real estate market is completely different from that of their parents or grandparents. This new situation is a challenge for the real estate sector, especially in the medium and long term. In this sense, millennials (people born between 1980 and 1995) are already a fundamental part of the target of real estate companies and so will be the young people of the so-called Generation Z in a few years (the following group, who were born with the 21st century).
The current data shows that they are a group that is mainly committed to renting when it comes to leaving their parents’ home, while the percentage that opts for the purchase of property is much lower. Thus, data from the Emancipation Observatory show that 58.8% of the youths living on their own do so on a rental basis while 38.4% own a home or are paying a mortgage.
What are the real estate preferences of the new generations? Find them summarized in the following points to get an idea of the characteristics and habits of this group and what the trends in the sector could be in the coming years.
-Low interest in buying. Young people have other vital projects and prefer to allocate the money necessary to save and buy a home to go on vacation or have leisure experiences. Therefore, when it comes to leaving their parents’ home, they mostly opt for rent.
-Technological equipment is essential. Those young people who can afford to buy a home do not conceive it without having the latest advances in home automation and technology.
-Digitalization in the sale. Both the real estate offer and the sale process must be digitized. Young people search, compare different options and find out through mobile devices and use digital tools to facilitate their search. The millennial shopper is a very informed, demanding consumer and is also hyper-communicated.
-Efficient housing. If any group is concerned about climate change, it is young people. The demand for energy efficient homes is about to become a staple for developers and builders.
-Search for homes adapted to new habits. The pandemic has made young buyers also look for more spacious homes, with more outdoor and bright areas or extra rooms to telecommute. And they also add to the growing trend of living outside the cities.