Generation Y:
What Kinds of Real Estate
Do They Really Want?
M. Leanne Lachman
Lachman Associates
April 11, 2013
Who is Gen Y?
3.3%
Silent Generation (84+)
9.7%
Depression & War Babies (68-83)
24.6%
Baby Boom (49-67)
17.2%
Gen X (36-48)
25.0%
Gen Y (18-35)
20.1%
Gen Next (<18)
Source: U.S. Census Bureau, 2010
Two Big Generations
Gen Y
Boomers
2010 Size
77.4 million
76.2 million
Birth Years
1978-1995
1946-1964
Age Now
18-35
49-67
Hispanic
21%
10%
Black
15%
12%
Asian/Other
10%
5%
Live to Work
16%
28%
Work to Live
85%
72%
Expect Never to Retire
10%
25%
Gen Y Descriptors
•
Techno-savvy
•
High Performance
•
Social
•
Entitled
•
Connected
•
Civic-minded
•
High Maintenance
•
Tattooed
•
Outspoken
•
Pampered
•
Educated
•
Optimistic
•
Multi-cultural
•
Underemployed
•
Entertainment-oriented
“Emerging Adulthood”
“When I was your age, I was an adult.”
Pew Survey Results
• Optimism undiminished from 2004
• 91% expect to sustain preferred lifestyles
• Only 30% consider today’s job a career
• Historically high % enrolled in school
• 24% moved back with parents
Source: Pew Research Center, December 6-19, 2011 Survey
ULI’s Gen Y Surveys
Nationally representative samples:
• n=1241 responses – housing
• n=1251 responses – retail
Focus on people over 18
• Finished high school
• Working, attending college or
vocational school, parenting
• 45% are 18 – 25
• 27% are 26 – 30
• 28% are 31 – 35
Confidence level of + 3%
Distributed across U.S.
Current Gen Y Housing
Owners
5%
32%
37%
Live with
Parents/Relatives
Student Housing
Renters
2%
24%
Source: ULI/Lachman Associates Survey, January 2013, n= 1251
Other
Marital Status by Age
Total Survey
Single
63.5%
Divorced/Widowed
2.0%
Married/Partnered
34.5%
100.0%
n=1251
Source: ULI/Lachman Associates Survey, January 2013.
Gen Y’s Self Characterization
I consider myself:
0%
City Person
Suburbanite
Small Town/Rural Person
n=1251
Source: ULI/Lachman Associates Survey, January 2013.
10% 20% 30% 40% 50%
Gen Y Housing Tenure by Age - 2010
Renters
Owners
Other*
38%
15%
47%
38%
44%
18%
30-32 yrs
36%
54%
10%
Total
38%
36%
26%
18-24 yrs
25-29 yrs
*Living with relatives or in student housing
n=1182
Source: ULI/Lachman Associates Survey, Summer 2010
Gen Yers Turning 22
4.6
4.4
Millions
4.2
4.0
3.8
3.6
3.4
Source: U.S. Census Bureau
Ava by Avalon Bay
Gen Y’s Pets
Pet Owners
71.5%
Dog(s)
53%
Cat(s)
35%
No Pets
n=1251
Source: ULI/Lachman Associates Survey, January 2013
28.5%
Gen Y as Consumers
• 37% love to shop
• 48% enjoy shopping when it’s required
• Not accumulating possessions
• Research online; may buy in stores
• 61% view shopping as entertainment
• Sensory aspects important
Gen Y’s Online Shopping
Electronics/Computer Equipment
44%
Women
34%
Men
54%
Gifts
43%
Personal Clothing
41%
Women
47%
Men
36%
Books
39%
CDs/DVDs
33%
Source: ULI/Lachman Associates Survey, January 2013
Gen Y’s Sharing Economy
“Access to stuff we want without having to own it”
• Rented dresses (RentTheRunway.com)
• Zipcars
• Tools & electronics
• Chefs & errand runners
• Toys (BabyPlays.com)
• Modern art
“Owning less offers more”
Gen Y Hotels
•
•
•
•
•
•
•
Aloft
Indigo
Hyatt Place
Gen 4
New York’s Standard & Ace Hotels
Motel One
Yotel
Gen Y as Office Users
• <100 sq ft/person
• No private offices
• Counters replace desks
• Creative interaction/fun spaces
• Work from home/car/Starbucks
• Green is preferable
• Incubator/temporary spaces in demand
Zynga Headquarters
Zynga Interiors
Gen Y as Office Users
• <100 sq ft/person
• No private offices
• Counters replace desks
• Creative interaction/fun spaces
• Work from home/car/Starbucks
• Green is preferable
• Incubator/temporary spaces in demand
Why We Call Them Gen Y
• Y should I leave home and find
my own place?
• Y should I get a car when I can
borrow yours?
• Y should I get a roommate?
• Y shouldn’t I have a dog?
• Y shouldn’t I treat myself well?
• Y should I stop traveling?
Generation Y:
What Kinds of Real Estate
Do They Really Want?
M. Leanne Lachman
Lachman Associates
April 11, 2013