Generation Y, those of us between the ages of 20 to 34, are playing a large role in the multifamily market and reshaping how it will look moving forward.
“Clearly Gen-Y is having a huge impact on the real estate community. What’s really significant is that real estate developers and the whole community are studying demographics and incorporating it in strategic plans. We didn’t have much of this in the past,” Stan Ross, Chairman of the Board of the University of Southern California’s Lusk Center for Real Estate, told HousingWire. “The key thing here is that they’re using it in an analytical way to build their plans as to where and what they develop.”
This generation graduated college and was immediately thrown in a struggling economy with very few jobs. Because of this, many in this group either were forced to move home or live with multiple roommates in order to afford their housing.
Ross says that many in Gen-Y are often surprised when they find out how much a mortgage costs and what an adequate down payment is in order to buy a home.
Analysts at the Lusk Center say that once this group does move into their own place, which is typically a rental at first, the biggest appeal are affordability, on-site amenities, nearby retail and restaurants. Greater square-footage now gives way to easy transit for this generation. “As a developer doing my strategies, I’ve got to really reevaluate the location,” Ross said.