Housing Giants - May 9, 2008 - (Page 23)

boomers did. Though this trend will be partly due to basic supply and demand, it also appears to be driven by changing generational attitudes toward home buying. “Generation X does not buy into the need for having sparkling, fresh homes as much as boomers did,” says James Chung, president of Reach Advisors, a marketing strategy and research firm based in New York. Many Generation Xers are particularly turned off by large suburban home developments, the socalled “McMansions,” Chung says. One reason for the McMansion backlash is affordability, as Generation X is typically saddled with more college debt than boomers had at similar ages. Another key reason may be a heightened sense of environmental consciousness. As large homes require homeowners to use more energy than smaller homes of a similar age and design, the McMansions of the 1990s and 2000s are not the greenest homes, which could make them a tougher sell over the next two decades. The consumer preferences of Generation Y, which is just beginning to enter the home market, have yet to be formed. This generation, like the Xers, faces housing affordability concerns, WWW.HOUSINGGIANTS.COM though, so an aversion to McMansions is likely among them as well. One key characteristic of Generation X and particularly Generation Y, which is sometimes referred to as the Internet generation, is their embrace of technology for managing many aspects of their lives. These consumers appreciate the convenience of researching products and services online and turn to the Web as their primary medium for finding and assessing homes for purchase. Developers will have to step up their Internet marketing efforts to reach these consumers if they’re not doing so already. It will also be important for home builders to understand the cultural traits of generations X and Y. “Depending on which generation you fall into, you may have certain instincts toward generational differences,” says Steven Kleber, president of Kleber & Associates, an Atlanta-based marketing consultant. “Be wary when marketing to certain groups that may differ from your own.” For example, Kleber’s research says that many Generation Xers hold the following impressions of baby boomers: “They’re self-righteous.” “They’re workaholics.” 5.9.08.HOUSING GIANTS 23 http://www.reachadvisors.com/ http://www.kleberandassociates.com/ http://WWW.HOUSINGGIANTS.COM

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Housing Giants - May 9, 2008 Contents Viewpoint News and Moves Tech M & A The New Housing Demographics

Housing Giants - May 9, 2008

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