Gen Y forces developers to adapt
Gen Y’s desire to rent instead of own Posted: May 01, 2012 at 9:31 AM by Yvonne Thomas
Maybe you have seen a shift in the market and brushed it off as the economy, the weather, or even the youth of today! Well, you will find that the trends of the big City are certainly going to travel to our outlying communities and if you had guessed that Gen Y is the reason that this shift is taking on a stronger roll in the housing market, you are correct.
Just think about it: you remember what it's like to turn on the TV and switch the channels without a remote. Gen Y has grown up with microwaves and remotes, iPhones and tablets. Gen Y is changing how our economy works, and they are changing the housing market's long term perspective. You may ask what that long term perspective looks like? We unfortunately do not have a glass ball that allows us to look into the future, but we certainly have the bennefit of looking at some of the most technically advanced communities in North America to see where we are headed.
We found this great write-up about Gen Y in the Atlanta Business Chronicle and wanted to share an exerpt of it for a better understanding of the Gen Y Factor.
Resource: Date: Monday, April 30, 2012, 1:10pm EDT - Last Modified: Monday, April 30, 2012, 1:11pm EDT
Specifically, here are three trends that we believe are fueling this shift in demand:
• Apartments are hot. In the wake of the housing crisis, people no longer see home ownership as the American Dream or a ticket to wealth creation. Apartment dwellers include people who have been burned by the housing market, and people who know someone who has been. Furthermore, Generation Y — the more than 70 million young people born between 1980 and 2000 — is entering the workforce and loves the flexibility offered by renting instead of owning.
• Mixed-use has staying power. That’s because people are tired of commuting and spending their lives inside cars. They crave walkable environments in urban infill settings. Also, zoning requirements across the country are increasingly demanding a mix of uses. The first phase at Emory Point also has 80,000 square feet of retail and Phase Two calls for an additional 40,000 square feet of retail. It should be noted that some planned mixed-use projects in other markets have dropped the retail component because it’s too difficult to lease. Retail is just not bouncing back as quickly as multifamily. But near Emory, there is pent-up demand for retail and restaurant space.
• Unit sizes are shrinking. Originally, the project’s residential units were designed with an average size of 950 square feet. The actual project has a slightly smaller average size of about 930 square feet. If we were designing the project today, the average unit would likely be 850 square feet. The smaller unit size allows the owner to demand a higher rate per square foot without driving up the monthly rent payment for the renter. As for living in a small space? Gen Y seems willing to accept less. Today’s apartment dweller is focused not on size but on amenities, nearby restaurants, and being out and about in a walkable environment.
We expect this trend to continue as Generation Y wants to live close in, rent instead of own and walk to dinner and places to hang out.
If you are a seller and you are seaking a Real Estate company who understands and facilitates the Gen Y Factor, you have come to the right place. Simply click on our link "Find an Office" and start speaking with a professional who specializes in your local market today.
If you are a Real Estate professional who has found him/her self wondering if you are prepared to manage the shift to accomodate future Real Estate markets with the Gen Y Factor, you can try our free real estate simulator to see if you know how Gen Y thinks!
Follow us on Facebook for more interesting facts and fun tips about Real estate, Lifestyle, and your communities.