Millennials vs. Boomers
Millennials vs. Boomers – Real estate property owners are required to think about many factors when deciding whether or not to develop certain properties. Various generations of investors desire different qualities in the properties they plan to acquire. This can, many times be understood by the present phase of life they are experiencing at the time. However, there is much more to it than this. The socioeconomic status and culture norms of different time periods have had quite an effect on the purchasing habits of many individuals today. Two specific groups that show significant variances are the Millennials and the Baby Boomers.
This group the new, popular audience to look out for. Many developers will pay attention to the desires of this group because they are making up such a large percentage of home buyers, recently. The younger age of millennials, when compared to previous studies, shows a preference to city living environments. Whatever the trends, the reality of the situation is that suburban life is now being sought out by the millennials. Real estate developers need to pay attention and provide proper amenities to attract these investors to their property. Millennials are often labeled as the generation with excessive amounts of student loans. They do, however, have the proper education to secure well-paying jobs. Suburban living may seem more realistic than the city buildings, due to the un-affordable price of many city properties for rent, as well. The millennials are not settling for properties that do not offer a good value and quality lifestyle.
Otherwise known as the “baby boomers”, this group was first expected to be in the top ranking of suburban home owners. With this group of buyers aging and the new millennials coming into play, you would think some real estate options might not be as important to them at present. Traditional living once mandated the need to secure established homes and stay in them throughout the duration of their lives. However, today’s older residents do not enjoy the convenience of large families and extended care options in the home. The generation of baby boomers, at present, is coming to an age where they do not want the problems of dealing with the daily maintenance of a home. Smaller living situations would make sense to resolve this issue. However, it is noticed that the boomer’s buying power in the suburbs has remained steady, instead.
The conflict for real estate developers, is trying to find a balance concerning the generation gap. A desirable location is only part of what needs to be accomplished. Developers need to fill the desires of both groups of individuals for them to find solace in their purchases. Each group is going to value various neighborhoods, amenities, and community options. Millennials may want more convenient access to nightlife locations, while baby boomers may value neighborhood parks and opportunities for neighborly interaction.
The best way to find a solution to this generation war is to create homes and communities that are attractive to both groups in some way. Perhaps a roomier home for those with larger families and garage apartments for those who may have extended family or adult kids at home. It is pertinent to take into consideration the differing financial needs, as millennials often have a background with student debt. While this debt has contributed to their high job status, the financial burden remains steady.
Millennials and baby boomers share more real estate purchasing commonality than may have been previously expected. However, it must be remembered that these different generations, both, hold a significant contribution in real estate investing. It may be prudent to consider the needs of these contributors when building new properties.