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The impact of Generation Z
in the intention to purchase
real estate in Kosovo
Visar Hoxha and Emblema Zeqiraj
Impact of
Generation Z
1
Department of Real Estate, College ESLG, Prishtina, Kosovo
Abstract
Received 13 December 2018
Revised 12 June 2019
Accepted 9 July 2019
Purpose – The purpose of this paper is to identify the impact that Generation Z has on the real estate
industry of Kosovo. By studying the behaviors and characteristics of Gen Z the stakeholders in the real
estate industry can gain advantages and opportunities in getting to comprehend their preferences, their
perspective and their decision to buy real estate in Kosovo.
Design/methodology/approach – The present study used a quantitative research method. For the purpose
of this study a questionnaire with close-ended questions is used. The questionnaire used for this study is a
self-evaluation and self-administrated questionnaire. The study included 200 people, mainly Albanian
speakers who participated in the questionnaire. All participants of the questionnaire were strictly members of
Generation Z that were born in the time period of 1995–2012. In this questionnaire the participants were
provided with full anonymity, since none of their identity data were requested during this process.
Findings – The findings of this study indicate that Gen Z and their different characteristics will have an
impact on the real estate industry.
Research limitations/implications – This study can be utilized as a landmark for agents of real estate on
understanding how they can use the characteristics and behaviors of Gen Z in their favor, by pointing out the
prominence of those characteristics and behaviors in realizing the needs and desires of the potential buyers
and the influence they have on the decision to buy property. Furthermore, through this study, the real estate
agencies will be provided with multiple reasons that substantiate the necessity to perform the proper research
about differences between generations.
Originality/value – The study is the first quantitative study that studies the linkage between behaviors and
characteristics of Generation Z and their intention to purchase real estate.
Keywords Behaviour, Real estate, Characteristics, Kosovo, Generation Z
Paper type Research paper
1. Introduction
Generations are not alike. Every generation has its unique characteristics such as
expectations, experiences, generational history, lifestyles, values and demographics that
influence their behaviors (Williams and Page, 2011), which consequently have a significant
effect on industry and business. Thus, the power of generations and their characteristics
should not be underestimated. Nevertheless, as stated in an article by Howe and Strauss
(2007), the generations follow historical patterns which are observable and can serve to
predict future trends.
The importance of generations and their characteristics is better noticed in the
dramatic developments and changes that have occurred during past decades in different
fields that are thought to be a manifestation of the characteristics of Millennials and
the way they behave. Every generation has had an impact on the overall evolution of the
business world and the industries. But, a major role in the most significant changes
was played by the Millennials due to changed purchasing behaviors, which were
mainly caused by fast rates of technology development. And the Millennials are not the
last generation that caused important changes. The generation right after Millennials,
known as Generation Z or iGen, is already making significant changes that should be
taken into account.
The Generation Z is variously defined as people born between the mid-1990s to the early
2010s (Tapscott, 2009). The Generation Z like using video communication, and spend a great
Property Management
Vol. 38 No. 1, 2020
pp. 1-24
© Emerald Publishing Limited
0263-7472
DOI 10.1108/PM-12-2018-0060
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deal of time on smart phones and accessing social media (Thomas, 2011) and also prefer
more other pastimes than visiting museums and galleries (Halliday and Astafyeva, 2014).
They experienced very important global problems such as terrorism, political instability
and environmental concerns (Salleh et al., 2017), that is why they hold different beliefs and
values. But, it is important to know that Gen Z should not be seen “just as a generation, but
as a new set of behaviors and attitudes about how the world will work and how we will need
to respond in order to stay current, competitive and relevant” (Koulopoulos and Keldsen,
2014). It is expected that by 2020 Gen Z will surpass Millennials (Larkin et al., 2018) and they
will represent a significant segment of world population.
Members of Gen Z differ from other generations, thus they “represent changes to
all aspects of corporate real estate (CRE) through their expectations in the workplace,
retail, residential, cultural and lifestyle environments” (Larkin et al., 2018). Taking into
account that the outcomes of real estate transactions have long-term impacts, it can be
stated that purchasing behaviors of the buyers are very important and should be
understood. At last, the real estate industry has experienced growth and the environment
has become very competitive. A way to gain a competitive edge in this industry is to give
the consumers what they want. It is essential for the real estate agents to understand what
satisfies the consumers and to fulfill their needs. These insights can be retrieved by
studying the behaviors and characteristics of different generations in the real estate
industry, starting with Gen Z which represents the most powerful potential buyers of
real estate.
The real estate market of Kosovo has experienced drastic changes the latter years
(Stanfield and Tullumi, 2004). The displacement of population during Kosovo’s War is one
reason of confusions and gaps that were present for a long period of time with property
documents. Tens of thousands of properties have been destroyed during the war (Tawil,
2009). In post-conflict Kosovo, the major complications derived from the lack of cadastral
books, property maps and other ownership documents which were held in Serbia (Stanfield
and Tullumi, 2004). Adding to this list the informally carried out transactions, the real estate
market of Kosovo faced many administrative and legal problems. All these complications
urged the need to a proper development of this sector of the economy. With the rise of
awareness for the necessity of formal transactions and adequate valuation of property, the
real estate industry started to grow. This industry, as many other industries, experienced
different changes such as the usage of new technologies, the shift of marketing to internet
and the change of consumers buying behavior.
Traits of Gen Z are as follows:
•
empowered;
•
task-focused;
•
more options than ever;
•
most educated and provided-for generation;
•
mature beyond their years;
•
sophisticated; and
•
serious.
Source: The ABC of XYZ: Understanding the Global Generations (McCrindle and Wolfinger,
2010, p. 65).
Kosovo, as many other countries nowadays, has a high percentage of Gen Z in its overall
population. As it can be seen from Table I, according to Kosovo Agency of Statistics (2011),
the population of Gen Z is 246,649, whereas the total population of Kosovo is 1,739,825.
Age
0–4
4–9
10–14
15–19
20–24
25–29
30–34
35–39
40–44
45–49
50–54
55–59
60–64
65+
Total
Source: Kosovo Agency of Statistics (2011, p. 31)
Year of registration: 2011
149,735
160,916
176,926
174,932
161,467
141,268
130,542
124,912
108,142
94,988
80,625
65,539
53,048
116,785
1,739,825
This makes the Gen Z constitute around 14 percent of the total population (Kosovo Agency
of Statistics, 2011). The demographic composition of Kosovo’s population indicates a
significant potential for the real estate market development, since young and average age
citizens show a higher tendency to own immovable property. The role of generations’
characteristics is noticeable in every industry, including real estate that is why it should not
be left unstudied. Taking into account the impact that generation of Millennials has had on
the real estate industry, it can be said that it is beneficial to analyze and oversee the impact
of successive generations. Since Gen Z is the post-Millennials generation, consequently is
the new generation of real estate purchasers. As it happened with previous generations, it is
believed that the main characteristics and behaviors of these purchasers will impact the
shaping of real estate industry. Therefore, this study is focused on understanding the key
behaviors of this generation that will shape the actual and future market of real estate. The
effects that this generation will have in the real estate market are substantially valuable,
that is why the following research presents the effects of Gen Z in the real estate industry
through theoretical and empirical analyses, focusing on the Kosovo’s market.
The central question of this study is:
RQ1. To what extent do Gen Z’s preferences influence their intention to purchase real
estate?
In order to provide proper answer to the raised question, the hypotheses are as follows:
H1. The intention of Gen Z to buy real estate is positively related to real estate features
preferences.
H2. The intention of Gen Z to buy real estate is positively related to their financial
concerns.
H3. The intention of Gen Z to buy real estate is positively related to real estate location
preferences.
H4. The intention of Gen Z to buy real estate is positively related to marketing approach
preferences.
H5. The intention of Gen Z to buy real estate is positively related to real estate purchase
process.
Impact of
Generation Z
3
Table I.
Kosovo’s population
classification
according to
age group
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2. Theoretical background
As already mentioned, the scientific literature provides a great variety of Generation Z
definitions and presents many theories concerning their time period. The classification
defined by Reeves and Oh (2007) including people born between 1995 and 2012, is the
primary categorization used in this thesis.
The first study about Generation Z started to appear when the generational researcher
Tapscott (1998), who defined Generation Z as “Generation Next” and characterized it as the
most unique since no generation ever before was more comfortable, knowledgeable and
educated with the technology and innovation. The study conducted by Tapscott, that
included 6,000 members of Generation Z all over the world, showed that this generation is all
about speed, innovation, freedom and tolerance. The term Generation Z was first presented
and used by Tari (2011) which is mostly used for this generation, but other practitioners also
use many other titles to label this age group. Other practitioners use media to compose the
name such as: “Facebook Generation,” digital native (Prensky, 2001), netgeneration,
igeneration, dotcom children, Cgeneration where C stands for connection, Dgeneration
where D stands for digital, and many more that are also presented in the table.
Why Generation Z should be studies it has been justified in data provided in a report by
Sparks and Honey (2018), according to which Gen Z will represent 40 percent of population
by 2020 and will have a buying power of $44bn. The influence that this generation will have
in every aspect in the near future is key to every organization. Young consumers of
Generation Z, born between 1995 and 2012 (Kitchen and Proctor, 2015), are supposed to be
the generation with a growing economic power. Gen Z should not be seen “just as a
generation, but as a new set of behaviors and attitudes about how the world will work and
how we will need to respond in order to stay current, competitive and relevant”
(Koulopoulos and Keldsen, 2014, p. 4).
The Zeds are considered the “up-ageing” generation since they are growing up faster
(McCrindle and Wolfinger, 2010), as estimated by World Health Organization: that children
are beginning puberty three months earlier every decade. As a result, they represent the
new consumer segment for most of the businesses. Members of Gen Z are involved in
education earlier and are earlier exposed to the marketing (McCrindle and Wolfinger, 2010).
This is also the latest generation that is currently growing up and will be dominating the
world in the next decades (Wiedmer, 2015). “We need to look at Gen Z not just as a
generation, but as a new set of behaviors and attitudes about how the world will work and
how we will need to respond in order to stay current, competitive and relevant”
(Koulopoulos and Keldsen, 2014). That is why except defining what Gen z means, it is
needed to study and understand their characteristics. So, the faster marketers get to know
them, the faster they can gain competitive advantages.
As any generation, Generation Z’s behavioral characteristic development was significantly
shaped and influenced by the environment and the surrounding elements (Salleh et al., 2017).
The most significant factor that should be considered when it comes to Gen Z is the usage of
technology, the impact of which being negative or positive should not be overlooked (Turner,
2015). Members of Gen Z grew up with in a very sophisticated medial and technological
environment, which resulted in an internet savvy nation and more expert than any other
previous generation (Salleh et al., 2017). According to Prensky (2001, p. 1), Generation Z is
considered digital natives, because they never experienced life before the internet. For
Generation Z, technology is like oxygen (Oblinger and Oblinger, 2005), so they cannot imagine
living without it. And since Generation Z is the most technologically centered generation, it
will also be the most empowered generation (McCrindle and Wolfinger, 2010).
When it comes to the characteristics of this generation, their lifestyle and attitudes,
they are considered to be individuals that are the new conservatives embracing traditional
beliefs, valuing the importance of the family, self-controlled and more responsible,
adapted to high-tech and multiple information sources, with messages bombarding them
from all sides (Williams and Page, 2011). “It is important to emphasize that Generation Z is
the first global generation in the world (Homo Globalis)” (Törőcsik et al., 2014), which
indicates that events in different parts of the world impact most of them. Soltan (2004), as
cited in Williams and Page (2011), stated that for members of Gen Z, peer acceptance
is very important since they need to feel that they belong to something, and their
self-concept is partially determined by the group to which the teens belong. Generation Z
is considered as the most planned for, most mollycoddled and most materially endowed
generation to date (McCrindle and Wolfinger, 2010). The youth of today are members of
the generation that grow up using the internet and know the verbal and visual world of
the internet. It means that they handle short, up-to-date, real time information with
pictures. Short attention span is typical of this generation, thus messages for them should
be created by taking the “less is more” approach into consideration. Simplification and
getting to the point can be productive (Törőcsik et al., 2014).
As mentioned before, Gen Z is the first generation that is directly exposed to digital
technologies, social networking sites and overloading information on the internet (Turner,
2015; Prensky, 2001). So, Generation Z is the first generation that grew up in an era of
developed information technology, which makes them the most critical users of social
networking sites that are constantly engaged in online exchanging of information and
conversation (Kitchen and Proctor, 2015). This generation immersed in internet and
technology has been shaped to multitask, making them to move quickly from one task to
another (McCrindle and Wolfinger, 2010). According to Prensky (2001), Generation Z, or as
he likes to call it The Digital Natives due to high usage of internet are used to receive
information rapidly and like to parallel process and multitask. He also adds that members of
this generation prefer graphics before text rather than the opposite, they prefer random
access and they function best when networked. It is also important to know that people of
this generation mostly make contact by devices, so contacting them via the internet is more
typical then the personal contact (Törőcsik et al., 2014).
Creativity, uniqueness and coolness has seemed to be an important feature of every product
or service they use. Generation Z’s motto is “Unique is the new cool,” compared to Millennials
who mainly followed the major trends of “cool” (Kearney, 2017). In a study conducted by
Google (2016) it is stated that “for Generation Z, what’s cool is also a representation of their
values, their expectations of themselves, their peers, and the brands they hold in the highest
regard.” Generation Z members use the products to express their individuality and unique
sense of identity (Kearney, 2017). It is important to know that for Generation Z social media is
not for sharing, in the contrary it is for consuming and connecting (Google, 2016, p. 4).
2.1 Generation constellation of Kosovo
To further understand the importance of this study and why Generation Z should be
analyzed when it comes to Kosovo, it is necessary to point out what is the rate that this
generation occupies in the population of Kosovo.
The latest report on population registration in Kosovo was conducted by Kosovo Agency
of Statistics (2011). According to Kosovo Agency of Statistics (2011), Kosovo’s population
mainly includes young people, where 28 percent of the total population is younger than
15 years old (in 2011) and half of it is younger than 28.2 years old (in 2011). In the report of
Kosovo Agency of Statistics (2011) the population structure classification by age group is
as follows.
Nowadays in Kosovo, as in any other country, five different generations are part of the
population. As mentioned before the most recent registration of population in Kosovo was
conducted in 2011. These data were used on the study to show how much place each
generation takes in the overall population of Kosovo.
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In Table II each generation is presented with the number and percentage they cover in
Kosovo. As seen in Table II the generation with the highest percentage is Generation Z, with
32.03 percent. With this percentage Generation Z represents the majority of population and
shows the necessity to study their attitudes, behaviors and preferences.
2.2 Real estate purchasing intention
Intention is defined as the indicator of a person’s willingness to perform the behavior (Han
and Kim, 2010). According to Taylor and Todd (1995), intention is a strong predictor of
human behavior. That is why the purchase intention is an antecedent to purchase decision
(Tan, 2012). Purchase intention is also referred to as the subjective judgment by consumers
reflected after they evaluate to buy or not a service or product (Sidi and Sharipah, 2011). Han
et al. (2010) stated that purchase intention coverers several meanings such as customer’s
willingness to consider buying a certain product or services; customer’s purchase intention
in the future; customer decision of repurchase.
The purchase intention must also be viewed within the decision-making framework.
Humans make decisions within the bounded rationality framework. According to Simon
(1955), within the bounded rationality framework, when reaching decisions humans face
limitations during the information processing, which are knowledge (information), available
time and computational capacities. On the other hand, Twersky and Kahneman’s biased
rationality approach says that during decision making humans are affected by heuristics
and other biases. People rely on a limited number of heuristic principles, which reduce the
complex tasks of assessing the probabilities and predicting values during simpler
judgments (Tversky and Kahneman, 1974).
Purchase intention measures the consumer’s possibility to purchase a product or service,
so the higher the purchase intentions, the higher the willingness of a customer to purchase
(Schuler and Adair, 2003). Han et al. (2010) suggest that purchasing intention shows that
consumers follow their preferences, past experiences and external environment, in order to
collect information and to evaluate most of the available alternatives before making a
decision. Chia et al. (2015) state that purchase intention has a positive impact on the
consumer’s decision to buy, since it can measure the possibility of a consumer to buy
products and services. So, the higher the consumer’s intention to buy, the higher will be the
consumer’s willingness to buy.
In this study the purchasing intention refers to the willingness of consumers to purchase
a real estate in the future, which is in line with definitions offered above. Purchase intention
in this study, as in other studies (Ajzen, 1991; Taylor and Todd, 1995; Han and Kim, 2010), is
the dependent variable which is predictable by independent variables by real estate
features, financial concerns, location, marketing approach and process.
Real estate features include age of real estate, dwelling type, size, interior design and
exterior design, efficiency of real estate and other features that are expected to influence of
the purchasing decision (Adair et al., 1996; Daly et al., 2003; Sengul et al., 2010;
Label
Table II.
Generation
constellation
of Kosovo
Birth year range
Traditionalists
1900–1945
Baby Boomers
1946–1964
Generation X
1965–1980
Generation Y
1981–1994
Generation Z
1999–2012
Source: Kosovo Agency of Statistics (2011, pp. 32-34)
Population number
Percentage
107,592
263,463
376,554
434,929
557,287
6.18
15.14
21.65
25
32.03
Opoku and Abdul-Muhmin, 2010). In many studies, it has been noticed that these features
are very important when deciding to purchase a property (El-Nachar, 2011; Haddad et al.,
2011; Sengul et al., 2010).
Financial concerns include house price, mortgage loans, income and terms of repayment,
mortgage availability, terms of purchase, house price, assessment value of property,
opportunity for quick appreciation and waiting period (Opoku and Abdul-Muhmin, 2010;
Yongzhou, 2009). Numerous studies proved that financial concerns of consumers have a
high impact on their purchasing intention (Adair et al., 1996; Sengul et al., 2010; Daly et al.,
2003; Kaynak and Stevenson, 2007).
Location of real estate includes the distance from consumer’s various point of interests
such as school, work, shopping district, family and friends (Opoku and Abdul-Muhmin,
2010; Adair et al., 1996; Clark et al., 2006). Findings of many studies (Sengul et al., 2010;
Kaynak and Stevenson, 2007; Adair et al., 1996; Daly et al., 2003) imply that location is one of
the most important factors when it comes to real estate purchase. Part of the location
variable in this study is also the so-called environment which includes the condition of the
neighborhood, attractiveness of the area, quality of neighboring houses, wooded area or
green coverage, non-residential uses in the area, parking sites, traffic noise and security
from crime (Adair et al., 1996). These factors also seemed to be very important in other
studies (Gabriel and Rosenthal, 1989; Morel et al., 2001; Opoku and Abdul-Muhmin, 2010).
This literature review aims to identify what is currently available in the literature about
the impact that generations, especially Gen Z, have on the real estate market. Even though
there are not numerous articles available, the small numbers of studies according this
matter are of a significant importance.
People who belong to different generations differ in terms of some group of traits. The
differences between generations when it comes to real estate were stated by McCrindle and
Wolfinger (2010) in their book named The ABC of XYZ: Understanding the Global Generations,
where they state that when Boomers were buying their firs houses the only important factor
was the paying. As per Generation X, the price preference was expanded and so was the
preferred size of an average house. They also add that this difference was also noted in the time
needed to pay the price of the house, due to changed lifestyle characteristics and affordability.
A study conducted by Mankiw and Weil (1989) examined the relationship between age
and housing demand, which by other researchers was considered as having inaccurate
conclusions, since they failed to emphasize the difference between age and cohort effects
(Green and Hendershott, 1996; Pitkin and Myers, 1994). According to these research studies
generation’s characteristics have a strong link with housing demand, since older people had
lower housing demand since older generations tended to be less well educated than the
younger ones. That is why younger generations earn more than older generations during
their lives, which is translated in a higher consume of housing, and this is considered to be a
cohort effect. This was also discovered in a research by Green and Hendershott (1996),
where Baby Boomers appeared to consume more housing even at older ages compared to
previous generations, due to better education.
To include more characteristics for generations, Green and Lee (2016) conducted a study
the results of which present the differences across generations in willingness to pay for
housing characteristics. The members of Good Warriors and Generation X have the least
disutility from living in old houses, in contrary to Millennials. Good warriors and Millennials
generally favored homes with more rooms, relative to Boomers and Generation Xers. When
it comes to homeownership the demand is the highest among Lucky Few (1929–1945) and
Baby Boomers, while Good Warriors and Millennials show less willingness for home
owning. On the other hand, members of Generation Z show a high willingness for home
owning, and since they believe in a bright financial future, they tend to buy a house in
the future (Vision Critical, 2016).
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Larkin et al. (2018) who also dealt with the impact of generations in real estate discovered
that members of Generation Z differ in a substantive way from Millennials, thus
understanding their characteristics is beneficial since it helps to get insight on their buying
behavior and what are their preferences when it comes to housing. Some of the major
insights of this study include the fact that Generation Z members are very concerned with
financial literacy and they take savings very seriously. Besides that, being digital personas
led them to require a level of technology presence in the space they live and work, and the
online presence is something they require from their favorite brands. Another thing that
Gen Zeds value a lot is creativity, uniqueness and authenticity. As these authors state, the
characteristics of Generation Z will determine the approach of design and development of
future cities, building and workplaces. They identified five main principles that can be used
to guide the decision making for real estate characteristics when it comes to Gen Z.
The characteristics of Generation Z inform lifestyle patterns that will be demanded, which
are flexibility, authenticity, choice, convenience and integration. Since according to Larkin
et al. (2018), “Gen Z influence, from buying behaviors to issues of attraction and retention in
the workplace, will be powerful and critical to real estate clients,” it is important to study
their characteristic and buying behavior.
A study focused on the Generation Z and their impact on hotel industry can be
considered as an important insight provider for Generation Z preferences about their living
environment and marketing approaches. This results from this research show that even
though size is an important factor for members of Gen Z, it is not as decisive as the design
that provides more efficient use of space (Seymen, 2017). According to Seymen they also
prefer the presence of high technological equipment in their rooms. They also like to be
reached by online means and experience tailored environments that suit their preferences
and characteristics. The main insights gained from this study for hotel industry are very
useful and applicable in every other living and working environment when it comes to
Generation Z.
Members of Generation Z should not be considered as the younger version of Millennials.
In the study almost all of the respondents that belong to Gen Z said that they plan to own a
house in the future (Synchrony, 2018). A whitepaper on Future Housing Product Types
Demand and Preferences is focused on national, state and regional trends that can impact
the housing market in upcoming years, and how they could shape and affect real estate
demand. This paper presents the trend in housing demand and preferences, with a high
attention being paid to generations’ differences. According to this paper, different
generations prefer different features of real estate, including affordability, walkability,
location, green spaces, maintenance, public transportation, diverse community, etc.
(Sacramento Area Council of Governments, 2018). Other reports conducted by National
Association of Realtors (2018) bring out the differences of different generations which are
mainly noticed in the home search process, engagement of real estate professionals in the
purchasing and selling process, financing the purchase, the primary reasons for owning a
home and home characteristics. A report that dealt with behaviors of Generation Z when it
comes to purchasing concludes that trust, influence and personalization are the three most
important factors and principles that brands and retailers should use when it comes to
dealing with consumers that belong to Generation Z (Kearney, 2017).
Another report conducted on the working spaces that enhance the well-being of the
workers, especially when it comes to the younger generations, points out that the main
characteristics of the members of these generations and preferences toward the space
impact the decision of the companies when it comes to the real estates they purchase and use
as workplaces (Moffat, 2017). This means that the impact of generational differences
exceeds the individual aspect of real estate. Research into Gen Z workplace preferences
indicates that this generation will be distinct from their millennial precursors. A major
personnel staffing firm surveyed Gen Z candidates and found the following hierarchy of
desired attributes in a first job: opportunity for growth (36 percent); stability (19 percent);
fulfilling work (19 percent) and a friendly environment (10 percent). Interviews posted by the
Society of Human Resource Management (SHRM) on its website indicated that this
generation’s experience of growing up in uncertainty and stress leads it to seek salary and
benefits features more than “making a difference” in their jobs. In seeking stability,
61 percent of the Generation Z sample would stay 10 or more years with an employer – a far
different tendency than the more footloose, gig economy – oriented Millennials. A similar
report points out that workplace design should also take into account Generation Z on its
own terms (PwC, 2018). As stated in the report contrary to the Millennials that were all
about collaborative workspace, Generation Z being more competitive and easily distracted
needs and wants more structuring in the workplace. As cited in this report the SHRM states
that “35 percent of gen Z would rather share their socks than their office space.” The report
suggests that the attributes of this generation imply that there should be a return of
possibly more structured and personal office space, but not by dismissing collaborative
space. Even though co-working spaces are embraced by most companies, it does not mean
that that is the way things will flow. Given that Generation Z seeks order, structure,
predictability, along with their tech-savvy skills, a back-to-basics trend will likely emerge,
consequently what was old may be new again.
The generational differences to preferences when buying a house are also pointed out in
a report where it is concluded that when it comes to Millennials they value proximity to
public transportation, walkability and mixed-use communities, prefer to live in large to
mid-sized cities and choose moderate houses, rather than luxurious houses like other
previous generations (Elliott and Reynolds, 2014). But, due to financial constrains most of
Millennials do not plan to own a house. This also supported by another report (PwC, 2018)
where the results of the survey indicate that members of Generation Z show much higher
desire for homeownership than Millennials. The same report also pointed out that
Generation Z may share the same constrains of affordability as Millennials did, such as
student debt and lack of savings.
On a report conducted by PwC (2018) a whole section on the impact of Generation Z in
real estate industry is provided. Generation Z now is the newest labor force entrants and is
poised to alter household formation patterns, consumption, and even workplace design
preferences, that is why real estate needs to prepare for change. Their experience of stress
orients them to pragmatism, caution and personal security, and the technology impact
makes them social, mobile and interactive. How Generation Z can affect the real estate
trends in the coming years was presented in this report and it is as follows. When it comes to
housing, Generation Z is likely to show the initial preferences for urban centers like
Millennials did, since that is where fist jobs are most likely to be found, and peer-to-peer
social interaction is easier. Since Generation Z identifies itself as a do it yourself cluster, it is
suggested that lower-cost fixer-upper houses could become a wider-spread option, which
may presage another wave of urban gentrification. The “gadgeteria” ethos of Gen Z can be
seen both as a challenge and opportunity by retailers. As stated in the report (PwC, 2018)
“Consumer immediacy is a Gen Z characteristic, and omni-channel is the taken-for-granted
shopping milieu.” For this generation social media is a two-way enterprise, where people can
show the products on Snapchat or Instagram, rather than just buying them. Members of this
generation presume the cataloguing of individual preferences, where the only reservation of
risk relates to theft of identity. Thus, stores with connectivity are appealing as long as
cybersecurity shows to be effective.
“As people’s habits change in the future, the nature of the space they need also changes”
(Savills World Research, 2015), these are the words included in a report about megatrends
that shape European real estate. As stated in the report one of the main megatrends that will
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10
shape the real estate industry and that is actually a challenge that the industry should
answer to is the user, including Generation Y and Generation Z. The generations will shape
the lifestyle patterns in the next years since they have different backgrounds, different
priorities and motives. According to the report some of the factors related to generations,
that can possible affect the property market, are the rising number of smaller households,
the need for affordable housing and assisted living, the demand for flexible working space
and the requirement for convenience and accessibility of publicly used buildings.
3. Research methodology
The present study used the quantitative research methodology. The quantitative research is
the approach that suits best this study, since it generates statistics through the use of
large-scale survey research, by using methods such as questionnaires or structured
interviews (Dawson, 2002). The aspects of the research process such as the objectives,
design, sample and the questions that the research asked the respondents were
predetermined, just like they should be in the structured approach (Kumar, 2011). According
to Creswell (2014), quantitative research is an approach that is used to test objective theories
by examining the relationship between different variables, which in this study was the
relationship between the purchase intention as the dependent variable and independent
variables that are the real estates’ features preferences, financial concerns, location
preferences, marketing approach preferences and real estate purchasing process. Leedy and
Ormrod (2001) stated that quantitative research is specific in surveying and
experimentation since it is used for existing theories. According to Williams (2007),
quantitative research begins with a problem statement and involves the formation of the
hypothesis, continues with the literature review, and it also involves quantitative data
analysis, which is actually the timeline or the development path of this study.
The quantitative research approach for this thesis is the proper one since the
quantitative approach includes the collection of such data that allow the quantification of
information and allows the information to be subjected to statistical treatments in order to
support or refute “alternative knowledge claims” (Creswell, 2014). The collection of data that
can be quantified was done through the participation of two hundred participants in the
questionnaire, and then the information was subjected to statistical treatment through SPPS
software and used to test the stated hypothesis. The intent of quantitative research is to
establish, confirm or validate relationships and to develop generalizations that contribute to
theory since the quantitative researcher seeks explanations and predictions that can
generate to other persons and places (Leedy and Ormrod, 2001). This was also supported by
Creswell (2014) who suggested that quantitative research applies strategies of inquiry such
as experimental and surveys in order to collect data on predetermined instruments that
deliver statistical data.
3.1 Research design
The research design of this study aimed to define the relationship between the preferences
of Generation Z members and their intention to purchase real estate. The data used for
theoretical background and literature review were retrieved from the international
literature available, while the data for the empirical part of the study were collected
through questionnaires. According to Kumar (2011), a research design represents a plan,
structure and strategy by which the investigation is conducted, in order to obtain answers
to research questions or problems. It includes an outline of what the investigator will do
from writing the hypotheses and their operational implications to the final analysis of data
(Kerlinger, 1986).
For this study, the non-experimental design is more appropriate since it involves variables
that are not manipulated by the researcher but are studied in the way they exist (Belli, 2008),
and it is performed through survey. According to Belli (2008), the reason why non-experimental
research should be used is because many variables of interest in social science such as gender,
socio-economic status, learning style or other personal characteristics or traits cannot be
manipulated by the researcher since they are attributed variables.
Since the study focuses on purchasing intention and preferences, which are personal and
behavioral traits of a person, it cannot be manipulated by the researcher, thus this research
design suits the best this study. The following figure shows the research design framework
used for this study.
The research design for this study has been presented in Figure 1.
Next, the conceptual framework of the study, where the variables and their relationship
are presented visually (Figure 2).
Impact of
Generation Z
11
3.2 Research instrument
The present study used questionnaires as a research instrument. As mentioned before the
research approach of this study is the quantitative one. The quantitative research generates
data by using survey methods such as questionnaires or structured interview (Dawson,
2002). Since data collection is used to approve or not the hypothesis of the study and also to
Theoretical Background and Literature Review
Generation Z
- Needs
- Preferences
Purchase Intention
- Willingness of
Gen Z
Hypotheses
Structured Questionnaires
Gen Z Members
Data Analysis
Discussion
Figure 1.
Research design
framework
Conclusion and Recommendation
Source: The author
Real estate features
Finances
Location
Purchase intention
Marketing
Process
Source: Adapted from Chia et al. (2015)
Figure 2.
Conceptual framework
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achieve the objectives of the study, in order to suit the research, the method used in this
study is the questionnaires method. Questionnaires represent a document which contains
questions and other types of items designed in such way to solicit information that is
appropriate to the analysis ( Jonker and Pennink, 2010).
For the purpose of this study a questionnaire with close-ended questions was used.
Close-ended questions are the most common questions since they require less time to
respond to them and are more preferable by the respondents. Questionnaires with these
kinds of questions are used to generate statistics in quantitative research and they follow a
set format (Dawson, 2002). A close-ended question is a question where the possible answers
are defined in advance and the respondent is restricted to choose the category that best
describes his answer (Mathers et al., 2009; Kumar, 2011).
The questionnaire that was used for this study is a self-evaluation and self-administrated
questionnaire. It is important to point out that the questionnaire offers full anonymity. The
questionnaire is 50 item six-dimensions questionnaire that measures the purchase intention
level and the real estate preferences of Generation Z. The questionnaire was composed of
two sections which are:
(1) the real estate purchase intention measuring section; and
(2) the preferences and needs of Generation Z’s members measuring section.
When measuring the purchasing intention of real estate these are not a huge number of
questionnaires available to measure it, rather the questionnaire was adapted from different
studies available. For the effect of simplicity this questionnaire was adapted to the language
understandable for younger consumers. The preferences and needs measuring section is
further divided into five sub-sections:
(1) real estate features preferences;
(2) financial concerns;
(3) location preferences;
(4) marketing approach preferences; and
(5) real estate purchase process.
The first section of the questionnaire was about the real estate purchasing intention of
Generation Z members. This part of the questionnaire was composed of close-ended
questions. In total, there were five questions in this section of questionnaire, where all the
questions are of the single response form, which means that the respondent must select only
one of the alternatives presented. The questions were in the form of Likert scale starting
from one to five.
On the other hand, the second section of the questionnaire was about measuring the
preferences and needs of Generation Z. Each of the sections contains nine questions which are
close-ended questions. Hence, the Gen Z’s preferences and needs evaluation section has a total
of 45 questions. All the questions were of the single response form, which means that the
respondent must select only one of the alternatives presented to him/her in each question. This
part of the questionnaire was composed of a five-point response format, starting from one to
five. This means that this part of the questionnaire consists of rated questions.
In order to be easier for the respondents to participate in the questionnaire, it is necessary
to translate the questionnaire into the native language of the participants which in this case
is Albanian. For the effect of correctness, the back-translation method was used. This is a
method through which the questions are translated from the main language to the targeted
language (Harkness and Schoua-Glusberg, 1998), in this case from English to Albanian, and
then it is translated back to the original language, in this case from Albanian to English.
3.3 Research participants
In total, 1,000 people, Albanian speakers participated in the questionnaire. All participants
of the questionnaire were strictly members of Generation Z that were born in the time period
of 1995–2000. In this questionnaire the participants were provided with full anonymity,
since none of their identity data were requested during this process.
The study used the stratified probability sampling. According to Tashakkori and
Teddlie (2003), the probability sampling techniques are used mainly in quantitative research
and involve selecting a relatively large number of units from a population, or from specific
subgroups (strata) of a population, in a random manner where the probability of inclusion
for every member of the population is determinable.
The study distributed around 1,280 questionnaires and 1,000 respondents returned
the questionnaires. The percentage of return of questionnaires is 78.2 percent. With the
confidence level of 95 percent and total population of Generation Z of 246,269 in Kosovo,
the margin of error is 3 percent. The total population of Generation Z and breakdown of total
population of Kosovo by age groups can be found in Table I. The structure of respondents
has been presented in Table III.
Impact of
Generation Z
13
Kosovo respondents
Total number
Percentage
Kosovo
1,000
100
Gender
Male
Female
Total
440
560
1,000
44
56
100
Age
From 18 to 20
From 20 to 23
Total
360
640
1,000
36
64
100
Education
Secondary school
University education
Master education
Total
280
570
150
1,000
28
57
15
100
Social status
Single
Married or in relationship
Total
940
60
100
94
6
100
Employment
Student
Part time
Full time
Interns
Unemployed
300
100
360
70
170
30
10
36
7
17
700
140
100
60
70
14
10
6
Current living
With parents
In personal homes
In rented homes
In dormitory
Source: Authors’ own
Table III.
The structure of
respondents
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The present research used a Likert scale in the questionnaire that was distributed to
respondents through a Survey Monkey link via e-mails. In each e-mail the guidelines as how
the questionnaire should be completed were provided. The questionnaire was composed of
two sections. According to Tarik, “the questionnaires can be composed of two sections”
(Grum and Temeljotov Salaj, 2011). The first part attempted to reveal the demographic
information of the respondents such as gender, age, education, socio-economic status,
marital and family status of respondents. The first part of the questionnaire is composed of
eight questions. The second part was composed of two sub-sections, whereby one is about
the real estate purchase intention and the second one about the preferences and needs of
Generation Z’s members measuring section.
The date collected were subject to statistical analysis with IBM SPSS Statistics 20, which
is used to assess the model of research used of obtain data. The descriptive statistical,
relationships and differences in the data analysis were used. Furthermore, the study will
also present frequency distributions, cross-tabulations, reliability analysis, factor analysis
and other analysis that are necessary to verify or not the hypothesis raised.
4. Results
This section presents the results obtained from the questionnaire used for the study and is
divided into three main parts. The first part presents the validation of the instrument,
whereas the second part deals with hypotheses testing.
One of the most important analyses for the study is the reliability test, which in this
study was performed with Cronbach’s α, presented on Table IV. Using the Cronbach’s α, the
extent of the reliability of the questionnaire can be tested. Moreover, this analysis can be
used to see if there is consistency between variables and how these variables are correlated
with each other. This analysis was performed individually for each variable, which were
presented on different sections in the questionnaire. The following table represents a
summary of Cronbach’s of all the variables of the study.
Purchase intention is a dependent variable, while real estate features, financial concerns,
location, marketing approach and process are the independent variables. As seen in
Table IV, the α of purchase intention, which is the dependent variable is 0.933, which
according to George and Mallery (2003) is considered as excellent, “_ W0.9 – excellent.”
This was also supported by Nunnally (1978), which stated that the preferable value for
Cronbach’s is 0.69. This indicates reliability and strong correlation between the variables.
While Cronbach’s αs for independent variables are as follows: real estate features 0.933,
financial concerns 0.927, location preferences 0.933, marketing approach preferences 0.950
and purchase process 0.961. According to George and Mallery (2003, p. 231), who stated that
α bigger than 0.9 is considered excellent, it can be stated that the independent variables
show a high consistency and are correlated quite well.
Next, the study tested the sampling adequacy through Kaiser–Mayer–Olkin test and the
Bartlett’s test of sphericity. With a number of 1,000 respondents, the KMO is 0.926, which
No. of items
Table IV.
Reliability of all
research variables
Study variables
1
Purchase intention
2
Real estate features
3
Financial concerns
4
Location preferences
5
Marketing approach preferences
6
Purchase process
Source: Questionnaire results analyzed with SPSS
Cronbach’s α
0.720
0.933
0.927
0.933
0.950
0.961
shows that the sampling is adequate and representative, which is supported by Coakes et al.
(2009) which found that the KMO values higher than 0.6 indicate that the sampling is
representative (Table V ).
The next step, after the statistical data and reliability tests, was performed in order to
test the five hypotheses stated in this study. The testing of hypotheses was performed using
linear regression through SPSS. The results from the testing are presented below. To be
more precise and clear, each hypothesis is presented on separate sections:
Impact of
Generation Z
15
H1. The intention of Gen Z to buy real estate is positively related to real estate features
preferences.
From Table VI it can be seen that R is 0.888, which indicates a strong correlation
between the purchase intention of members of Generation Z and the first independent
variable which is real estate features preferences. From R2 which is 0.721 it can be
understood that 72.1 percent of the purchasing intention of Gen Z can be explained by the
real estate features preferences.
From Table VII it can be seen that all the βs are of a higher value than 0.1, which together
which the up-mentioned results indicate that H1 is verified:
H2. The intention of Gen Z to buy real estate is positively related to their financial concerns.
From Table VIII it can be seen that R is 0.850, which indicates a strong
correlation between the purchase intention of members of Generation Z and the second
independent variable which is financial concerns. From R2 which is 0.762 it can be
understood that 76.2 percent of the purchasing intention of Gen Z can be explained by the
financial concerns.
From Table IX it can be seen that most of the βs are of a higher value than 0.1, which
together which the up-mentioned results indicate that H2 is verified:
H3. The intention of Gen Z to buy real estate is positively related to real estate location
preferences.
From Table X it can be seen that R is 0.883, which indicates a strong correlation between the
purchase intention of members of Generation Z and the first independent variable which is
location preferences. From R2 which is 0.713 it can be understood that 71.3 percent of the
purchasing intention of Gen Z can be explained by the location preferences.
Kaiser–Meyer–Olkin measure of sampling adequacy
Bartlett’s test of sphericity
Approx. χ2
df
Sig.
Source: Questionnaire results analyzed with SPSS by the author
Model
R
Model summary
Adjusted R2
R2
1
0.888a
0.721
0.713
Notes: aPredictors: (Constant), rf9, rf4, rf6, rf7, rf2, rf5, rf8, rf1, rf3
0.926
10,730.763
1,225
0.000
Table V.
KMO and
Bartlett’s test
Table VI.
SE of the estimate R and R2 for purchase
intention and real
0.581
estate features
preferences
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Coefficientsa
Model 1
16
Table VII.
Coefficients for
purchase intention
and real estate
features preferences
Unstandardized
coefficients
B
SE
(Constant)
0.809
0.339
rf1
0.139
0.086
rf2
0.242
0.074
rf3
0.226
0.105
rf4
0.164
0.085
rf5
0.060
0.091
rf6
0.024
0.072
rf7
−0.080
0.084
rf8
0.091
0.084
rf9
−0.020
0.080
Note: aDependent variable: pi1
Model
R
Standardized coefficients
β
0.147
0.268
0.222
0.170
0.161
0.221
0.171
0.186
0.218
t
95.0% confidence
interval for B
Sig. Lower bound Upper bound
2.390 0.018
1.601 0.111
3.284 0.001
2.163 0.032
1.927 0.056
0.655 0.513
0.329 0.742
0.958 0.339
1.088 0.278
0.251 0.802
Model summary
Adjusted R2
R2
0.141
−0.032
0.097
0.020
−0.004
−0.120
−0.119
0.245
0.074
0.179
1.477
0.309
0.387
0.432
0.332
0.240
0.167
0.085
0.256
0.139
SE of the estimate
Table VIII.
1
0.850a
0.762
0.750
R and R2 for
a
Notes: Predictors: (Constant), fc9, fc3, fc6, fc7, fc8, fc5, fc2, fc4, fc1
purchase intention
and financial concerns Source: Questionnaire results analyzed with SPSS by authors
0.625
Coefficientsa
Model 1
Unstandardized
coefficients
B
SE
Standardized coefficients
β
t
95.0% confidence
interval for B
Sig. Lower bound Upper bound
(Constant)
1.507
0.366
4.116 0.000
fc1
0.101
0.093
0.108
1.080 0.281
fc2
0.226
0.083
0.254
2.719 0.007
fc3
0.143
0.090
0.170
1.590 0.114
fc4
0.167
0.087
0.188
1.922 0.056
fc5
0.085
0.094
0.093
0.906 0.366
fc6
0.016
0.072
0.116
0.222 0.825
fc7
0.059
0.074
0.160
0.796 0.427
fc8
0.020
0.096
0.117
0.213 0.832
Table IX.
fc9
0.112
0.096
0.093
1.162 0.247
Coefficients for
Note: aDependent variable: pi1
purchase intention
and financial concerns Source: Questionnaire results analyzed with SPSS by the author
Model
R
Model summary
Adjusted R2
R2
Table X.
0.883a
0.713
0.699
R and R2 for purchase 1
a
intention and location Notes: Predictors: (Constant), l9, l3, l7, l6, l8, l5, l1, l4, l2
Source: Questionnaire results analyzed with SPSS by the author
preferences
0.785
−0.083
0.062
0.034
−0.004
0.100
0.126
0.087
−0.169
−0.301
2.230
0.284
0.390
0.319
0.339
0.270
0.158
0.205
0.210
0.078
SE of the estimate
0.587
From Table XI it can be seen that most of the βs are of a higher value than 0.1, which
together which the up-mentioned results indicate that H3 is verified:
Impact of
Generation Z
H4. The intention of Gen Z to buy real estate is positively related to marketing approach
preferences.
From Table XII it can be seen that R is 0.794, which indicates a strong correlation between
the purchase intention of members of Generation Z and the fourth independent variable
which is marketing approach preferences. From R2 which is 0.682 it can be understood that
68.2 percent of the purchasing intention of Gen Z can be explained by the marketing
approach preferences.
From Table XIII it can be seen that most of the βs are of a higher value than 0.1, which
together which the up-mentioned results indicate that H4 is verified:
17
H5. The intention of Gen Z to buy real estate is positively related to real estate purchase
process.
From Table XIV it can be seen that R is 0.728, which indicates a strong correlation between
the purchase intention of members of Generation Z and the fifth independent variable which
is purchase process of real estate. From R2 which is 0.611 it can be understood that
61.1 percent of the purchasing intention of Gen Z can be explained by the purchase process
of real estate.
From Table XV it can be seen that most of the βs are of a higher value than 0.1, which
together which the up-mentioned results indicate that H5 is verified.
Table XVI shows the hypotheses testing summary as below.
Coefficientsa
Model 1
Unstandardized
coefficients
B
SE
Standardized coefficients
β
t
95.0% confidence
interval for B
Sig. Lower bound Upper bound
(Constant)
0.220
0.350
0.628 0.531
l1
0.111
0.099
0.120
1.120 0.264
l2
0.217
0.108
0.219
2.007 0.046
l3
0.190
0.111
0.188
1.711 0.089
l4
0.052
0.102
0.051
0.513 0.608
l5
0.252
0.095
0.249
2.663 0.008
l6
0.014
0.069
0.014
0.204 0.838
l7
−0.024
0.073
0.122
−0.329 0.742
l8
0.207
0.092
0.170
2.240 0.026
l9
−0.064
0.084
0.057
−0.764 0.446
Note: aDependent variable: pi1
Source: Questionnaire results analyzed with SPSS by the author
Model
R
Model summary
Adjusted R2
R2
1
0.794a
0.682
0.457
Notes: aPredictors: (Constant), m9, m4, m6, m8, m1, m7, m5, m2, m3
Source: Questionnaire results analyzed with SPSS by the author
0.470
−0.085
0.004
−0.029
0.149
0.065
−0.122
0.167
0.025
0.230
0.910
0.308
0.431
0.408
0.254
0.439
0.150
0.119
0.389
0.101
Table XI.
Coefficients for
purchase intention
and location
preferences
SE of the estimate
0.680
Table XII.
R and R2 for purchase
intention and
marketing approach
PM
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Coefficientsa
Model 1
18
Table XIII.
Coefficients for
purchase intention
and marketing
approach
Unstandardized
coefficients
B
SE
Standardized coefficients
β
t
Sig.
95.0% confidence interval for
B
Lower bound Upper bound
(Constant)
1.111
0.390
2.853 0.005
m1
−0.006
0.110
0.106
−0.052 0.959
m2
0.389
0.106
0.407
3.657 0.000
m3
0.044
0.115
0.043
0.384 0.701
m4
0.277
0.106
0.268
2.611 0.010
m5
0.019
0.108
0.018
0.176 0.860
m6
0.008
0.068
0.108
0.123 0.902
m7
−0.153
0.084
0.169
−1.821 0.070
m8
0.051
0.083
0.050
0.617 0.538
m9
0.138
0.089
0.140
1.544 0.124
Note: aDependent variable: pi1
Source: Questionnaire results analyzed with SPSS by the author
Model
R
Model summary
Adjusted R2
R2
0.343
−0.223
0.179
−0.183
0.068
−0.193
−0.125
−0.319
−0.112
−0.038
1.880
0.211
0.599
0.272
0.486
0.231
0.142
0.013
0.214
0.314
SE of the estimate
Table XIV.
0.782a
0.611
0.593
R and R2 for purchase 1
a
Notes: Predictors: (Constant), p9, p2, p7, p5, p6, p4, p1, p8, p3
intention and
Source: Questionnaire results analyzed with SPSS by the author
purchase process
0.588
Coefficientsa
Model 1
Table XV.
Coefficients for
purchase intention
and purchase process
Table XVI.
Hypotheses
testing summary
Unstandardized
coefficients
B
SE
Standardized coefficients
β
t
95.0% confidence
interval for B
Sig. Lower bound Upper bound
(Constant)
1.033
0.320
3.228 0.001
p1
0.223
0.101
0.220
2.201 0.029
p2
0.127
0.119
0.126
1.059 0.291
p3
0.345
0.102
0.362
3.396 0.001
p4
0.112
0.100
0.115
1.124 0.262
p5
0.007
0.088
0.107
−0.075 0.940
p6
0.008
0.082
0.009
0.099 0.922
p7
0.102
0.098
0.101
−1.045 0.297
p8
0.005
0.106
0.105
0.044 0.965
p9
0.089
0.066
0.103
1.358 0.176
Note: aDependent variable: pi1
Source: Questionnaire results analyzed with SPSS by the author
0.402
0.023
0.109
0.144
−0.084
−0.180
0.170
0.295
0.205
−0.040
1.664
0.423
0.362
0.545
0.308
0.167
0.154
0.091
0.214
0.218
Hypothesis
Status
H1
H2
H4
H5
Source: The authors
Verified
Verified
Verified
Verified
5. Conclusions, recommendations and limitations
The following section presents a highlight of the conclusions obtained from the study.
It points out the limitations which the study was faced with. This section also provides
recommendations and future directions of the study.
5.1 Conclusions
The aim of this research was to determine whether the preferences of members of
Generation Z have an impact on their real estate purchasing intention. To gain specific and
reliable results, the study was focused on the Generation Z members of Kosovo. In order to
meet the aims and objectives of the study, the study included a broad research of theoretical
background about Generation Z and a literature review of what is available about the
impact of the Generation Z preferences in the overall real estate industry. Furthermore, to
test the raised hypothesis an adequate questionnaire was used. The five raised hypotheses
have resulted in being accurate, which indicates that preferences of Generation Z influence
their real estate purchasing behavior to a significant extent.
As concluded from the theoretical background, generations imply different behavioral
patterns. Thus, generations differ in terms of their values, attitudes and lifestyle, which
translates in different preferences. Being the first generation that grew in the era of internet
and huge technology developments, Generation Z members have developed very unusual
needs and preferences compared to the other generations. Among other things, they use
different social media, prefer different advertisement, have different financial concerns,
prefer different location, appreciate authenticity, and feel the need to be constantly
connected. With the most members of the generation growing up, they represent the next
consumer cohort of the real estate industry. Consequently, understanding their needs and
preferences is a necessity.
From the conducted empirical study, it was concluded that real estate features
preferences, financial concerns, location preferences, marketing approach preferences and
real estate purchase process significantly impacts the Generation Z’s real estate purchase
intention. This also leads to the conclusion that generations, especially those who are about
to become the next consumers should be analyzed and understood to that extent so they can
be used to build competitive advantage and meet the consumers’ needs and preferences
which lead to high consumer satisfaction.
5.2 Recommendations
The fact that in this study Generation Z has proven to have a significant impact on the real
estate industry has led to the following recommendations:
•
Stakeholders of real estate industry should work on studying and on understanding
the preferences and needs of Generation Z and on meeting them in order to improve
the overall performance of real estate industry and improve consumer satisfaction.
The policy-makers should try to make the real estate transactions system more
digital starting from listing, contacting the intermediaries to the registration of real
estate transaction all digitally.
•
Since generation has proven to be a strong indicator of buying intention, a high
attention should be paid to understand dimensions of the purchasing intention such
as real estate features preferences, financial concerns, marketing approach, location
preferences, purchasing process and other dimensions that relate to different fields,
especially to the industries that require high attention to consumer preferences. Since
the Gen Z represents a significant proportion of Kosovo’s populations, the Ministry of
Environment and Spatial Planning of Kosovo should try to incorporate the real estate
Impact of
Generation Z
19
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38,1
and housing preferences of Gen Z in the Comprehensive Building Code of Kosovo,
which is still in the drafting process.
•
Real estate agents/agencies should try to gain a higher awareness of the generational
studies and its benefits in their performance, and also try to integrate services that
members of different generations perceive as an added value. The real estate
agencies, developers and universities should enhance cooperation in conducting
comprehensive market research studies on marketing preferences of various
generations. The Ministry of Education in cooperation with the Ministry of
Environment and Spatial Planning of Kosovo could set up a research fund for
universities to help real estate agencies and developers understand the preferences of
various generations in Kosovo, including that of Gen Z.
•
Real estate construction companies, architects, engineers and interior designers
should try to develop real estate features (such as age, dwelling type, room numbers,
smart home features, etc.) that are required and preferred by members of Generation
Z. Some of the features such smart home features can be subsidized with tax reliefs
by the municipal authorities in Kosovo. The municipalities can provide property tax
reliefs for the types of real estate that include the building management systems with
smart home features.
•
Real estate agents/agencies, banks and sellers should understand the financial
concerns of Generation Z members’ in order to provide them with proper paying
methods and help them overcome their biggest obstacles when it comes to real estate
purchase. The authorities can in cooperation with banks provide subsidization to
banks so they can provide more favorable loans especially for installation of smart
home systems in residential units that are preferred by Gen Z.
•
Real estate agents, construction companies and urban developers should take into
account the location preferences (proximity to common areas, green spaces,
neighborhood characteristics, etc.) of Generation Z members in order to offer them the
daily comfort they seek for their lifestyle. Since most of municipalities in Kosovo are
in the process of changing their urban plans based on the Law of Urban Planning of
Kosovo, more green spaces and neighborhood characteristics that are preferred by
Gen Z could be added to the urban plans that are in the process of drafting.
•
Real estate agencies/agents should try to develop and strengthen modern marketing
strategies (including the social media, the channels of communication, the
advertisement, the visuals, the featured people, etc.) in order to attract and connect
with members of Generation Z. The Kosovo Cadastral Agency could seek donor
funds for the development of an integrated database where real estate agents can
place all their listings online with all the visuals and features that are preferred by
the Gen Z.
•
Real estate agencies/agents should try to understand and adjust the real estate
purchase process to Generation Z members’ preferences.
20
5.3 Limitations
This study has faced particular limitations which relate to the literature available as well as
to the empirical study. The fact that the study does not have a comparative basis can be
considered as a limitation. When it comes to Generation Z and its impact on real estate
agents there is not enough literature available through which the study can be validated.
The lack of prior research studies regarding this topic is also considered to be a limitation of
this study.
The self-reporting questionnaire may affect the results of the study. Since the study is
conducted through a questionnaire it is less reliable than it would be if the study was
conducted through certain observations. This limitation does not relate to the
questionnaire itself or the questions it includes, but it relates to the known fact that
respondents answering the questionnaire tend to fall into different biases that should be
noted as limitations of research.
Impact of
Generation Z
21
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Further reading
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Corresponding author
Visar Hoxha can be contacted at: visar.hoxha@eukos.org
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