Generation Y, the leading edge of which will come of home-buying age in less than four years, thinks, talks and acts differently, and they have decidedly different preferences in housing. Are you ready for this?
Perhaps the biggest factor in deciding location and housing type for Gen-Yers and WINKs is proximity to work. “They don't want to commute; they don't want to commute by car,” Kannan says. “They want to live in a walkable place, and they're willing to pay more for fixed rail transit in urban cores.”
Size matters less to Gen-Y than to the Baby Boomers. They aren't nearly as interested in square footage as they are in proximity to work, dining opportunities, or retail. Sixty percent of WINKs surveyed said walking is a “vital” component of where they choose to live. And these women are willing to move to second-tier cities to be able to afford the lifestyle they want. Overwhelmingly, for WINKs, that includes being just a stone's throw from the outdoor activities, biking trails, and other recreational pursuits their lifestyles demand.
In other words, Gen-Yers in general and WINKs in specific don't ever plan on spending all that much time at home, even after they buy.
Gen-Yers are movers and shakers, and they plan on moving a lot, buying up houses along the way. According to Zogby, the average Gen-Yer will have held four different jobs by the time they turn 30 and 10 jobs by the time they turn 40.
“It means it's very difficult to see them planting roots in any one community and see long-term commitment the way things used to be,” Zogby says.
But that doesn't mean Gen-Y isn't committed to community. In fact, Gen-Y is more socially aware, globally networked, and community service oriented than any generation that came before.
When it comes to housing, they're looking for homes on smaller lots grouped closer together, where they can easily plug in to what's happening in their neighborhoods.
In addition, Gen-Yers want diversity—both in their communities and their housing options. Thanks in part to immigration trends, they are the most ethnically diverse generation the U.S. has seen—and it shows in their multicultural preferences. With one out of every three Gen-Yers a visible minority, it's no wonder that they gravitate toward cities and urban epicenters.
Laura Gonzales is a prime example of the Gen-Y shift. She's a WINK in the new-home market at the age of 25 with her boyfriend, Tobin McKenna, also 25. For the couple, buying a home together isn't a precursor to settling down by any means.
“Oh, no,” Gonzales says. “We're partners in an investment. This isn't a ‘settling down' thing at all.”
