Gen X and Gen Y already are and will for some time, impact the real estate market in an incredible manner. Not only are fuel and utility costs much higher in larger homes, but most simply don’t need the space – witness the dearth of formal dining rooms in many new homes. Condos are extremely attractive to young professionals due to their smaller, typically better quality space close to everything. Failing to recognize and acting on this emerging trend would be as dangerous as ignoring the baby boomer market.
Reach Advisors, a market-research firm in Boston, would argue that the Drurys are not alone in their thinking, and that there is a disconnect between affluent “Generation X” home buyers and the home builders and land developers who are supposed to be catering to them.
James Chung, president of Reach Advisors, said he believes there is a “generational shift,” with buyers ages 25 to 39 demanding features that are different from what their parents, the baby boomers, have sought. “Yet, most home builders are reluctant to change the formula that made them so profitable over the past 10 years,” Mr. Chung said. (Source: NYTimes)
For more insight, I recommend this article from the NYTimes; Gen X and Gen Y have different needs and desires. If the market as a whole is not set to adapt, somebody will.
For an example of another growing, and slightly extreme trend, see Tiny Homes.
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