Sunday, September 1, 2013

What Real Estate Do Millennials Want?

If Texas, a state notorious for building expansive cities which require vehicles, begins to build real estate with businesses next to living spaces, then every real estate developer should follow. As you can read in the previous post, Generation Y Dumps Vehicles and Driving, Echo Boomers don't like driving and won't drive as much as former American generations. They carry an expectation that their jobs and favorite stores should be near them. From a bird's eye view, how should you approach real estate development? See the below, very simplified image:

In the center, black area, social businesses - such as restaurants, coffee shops, fashion stores - and living spaces - such as apartment and condos - should be either stacked (living on top, business on bottom), or living spaces nearby businesses. In the outer, blue area of the development, professional businesses (like Google, Southern Company, Macy's Headquarters, etc) exist in close vicinity to where Echo Boomers live. This allows Echo Boomers to travel a minimum distance in order to arrive at a professional office. In Lubbock, where I recorded my original video, the real estate developers built the businesses, apartments and shops within one square mile (and across from Texas Tech University). The more compact the development, the better for Millennial customers.

Keep in mind that since Generation Y will have a lower marriage rate, suburban areas will be in less demand than these areas. The "suburbs" appeal to families, whereas these areas appeal to single parents and singles. With a generation of approximately 33-40% singles (in the long run) out of 80 million, that's a demand of at least 26 million from this generation alone.