Kitchen & Bath Business/KBIS January/February 2022 - 16

HO T T OPIC
Fresh Perspectives
Five ways younger homebuyers differ from previous generations
WITH MANY MILLENNIAL and even Gen Z homebuyers fl ocking to the suburbs
in the last couple years, you might be tempted to think they're just like previous
generations. Be careful - you don't want to be lulled into thinking that you
can just take a cookie-cutter approach to home buyers who are 40 and younger.
Th ese generations have distinctive goals, worldviews and preferences that need
to be considered when you're building, designing and furnishing homes.
Here are four key distinctions for millennials (born 1981-1996) and Gen
Z (born 1997-2012) that relate to home buying.
1. HIGHER ECONOMIC STRESS
Many older millennials know what economic stress is like - they graduated
from college during one of the worst economic downturns of the last century,
then endured another one about 10 years later. Average student debt
spiked from $12,600 to $40,600 from 1992 to 2019 (in dollars adjusted to
infl ation) according to the " Survey of Consumer Finances. " Th e primary
reason: Tuition cost at a four-year school is 250% higher - adjusted for infl ation
- than it was in 1964, when the oldest baby boomers started attending
college. Although college graduates' earning power will likely increase over
time, this still aff ects their ability to buy a home.
It's no surprise there are trends like these, as described by Pew Research:
 It's less likely millennials will live with a family of their own than previous
generations did at this point in their life.
 Millennials are getting married later and are waiting longer to have kids.
Th at's why we're seeing many people 40 and younger re-evaluating homeownership.
It might be on the back burner for them or not happen at all,
which is diff erent than prior generations.
" We're seeing many people 40 and
younger re-evaluating homeownership.
It might be on the back burner for them or
not happen at all. "
2. INCREASED DIVERSITY
Millennials were considered the most diverse generation in American history,
according to Pew Research, until Generation Z came along. In fact, only 52%
of Generation Z is non-Hispanic white, about 25% are Hispanic, 14% are
Black, 6% are Asian, and 5% are another race or two or more races.
What does this mean for the housing industry? A report by the Urban
Institute predicts almost 7 million net new homeowner households between
2020 and 2040. As a result, they believe we will see Hispanic homeowners
increase by 4.8 million and homeowners of other races (primarily Asian) will
go up by 2.7 million.
Th is can aff ect home design. For example, some builders are ensuring
their homes refl ect the cultural sensibilities of potential buyers by includ16
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JAN.-FEB. 2022
ing features such as prayer rooms and taking into
consideration design systems such as vastu shastra
and feng shui.
3. DIGITAL DEPENDENCE
Most millennials and just about all Gen Zers
have always had smart phones and relied on digital
solutions in nearly everything they do. Th ese
two generations are transforming the way the
industry builds, designs, markets and remodels
homes. Th is is driving more online sales for
new homes and smart home implementation for
new and remodeled dwellings, including rentals.
Th e answer isn't to just make everything " smart, "
however. For example, younger homeowners
aren't as enamored with high-tech security as
older generations.
4. THE IMPORTANCE OF SUSTAINABILITY
Sustainability is more vital in every aspect of life
for millennials and Gen Z. Green/energy-effi -
cient features were more important in new homes
among those two generations than any other, according
to the National Association of Realtors'
" 2021 Home Buyers and Sellers Generational
Trends Report. "
It is much more important than putting a sticker
on a product and saying it is energy effi cient.
Sustainability is a big component of who they are
and what they believe, and they want the brands
to really refl ect their views of the world.
5. OUT OF THE OFFICE
Working remotely is also a factor millennials and
Gen Z homebuyers are taking into account. For
example, 36% of millennials would like a larger
house because of the stay-at-home time spent
during the pandemic, and a home offi ce is essential
or desirable to 74% of them, according to the
" What Home Buyers Really Want 2021 Survey "
by the National Association of Home Builders.
Since younger generations face fi nancial limitations
- such as student loan debt - they're going
to look for homes that are fl exible enough to give
them ideal work-from-home spaces.
By Corey Ross, the director of consumer and
marketplace insights at Whirlpool Corp.
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Kitchen & Bath Business/KBIS January/February 2022

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