A Guide to How Millennials Want to Live Today (Hint: It’s Unconventional)

Are millennials unconventional?

Well, as it turns out, millennials are extremely different compared to past generations. That’s why many millennials are called disruptors — they’re actually turning many industries upside down due to different ways of living, beliefs, priorities, behaviours, and even mentality.

This phenomenon actually makes them a key player in today’s society. So getting to know them better will have profound advantages especially if your business deals heavily with them.

Who are the millennials?

Millennials (also called “Generation Y”) refer to the generation who was born between 1981–1996. This includes everyone who’s now 24–39 years old.

For a few years, millennials dominated the world in terms of numbers. Although they are now second to Generation Z (the next generation after millennials), the adult world is mostly still in the hands of millennials.

Worldwide, millennials represent almost 24% of the total population. Take note, however, that this varies between countries. For instance, CaixaBank Research reported that Europe roughly has 20% millennials against the total population.

In the US, the Pew Research Center reported that millennials (72.1 million) have overtaken Baby Boomers (71.6 million) as the largest generation.

Since millennials grew up with the technological advances we know today, they are considered the first digital-native generation. Most of them grew up with technology around which makes them familiar highly familiar with gadgets and everything digital.

Millennials tend to live with parents for longer stretches

For years now, it’s becoming more common for millennials to live at home with their parents. Though there are theories, it’s really not that easy to determine.

Here’s one of the statistics gathered by a geopolitical reporter named Annabelle Timsit:

In 2017, 39.3% of young adults in the 28 countries of the European Union still lived with at least one parent.

One of the theories economists are looking at is the effect of the 2008 recession that has put many millennials in deep debt. Millennials who were hit by the recession may have lost their job and in effect, have caused them to move back home.

In the US, it’s been found that millennials who live with parents are more common among those with lower education. Research from the Pew Research Center revealed that those who never attended college were twice as likely to live with parents compared to college graduates.

This translates to fewer millennials owning a house or some sort of real estate property. In fact, the United States Census Bureau released a report a few years ago about how Americans are moving at the lowest rate on record.

When you think about it, it definitely makes sense. After all, it’s easy to argue that affording a home was easier for the previous generation.

Why? Plainly because many millennials today have financial challenges including credit card debt and student loans — which affect the ability to save up enough money for a downpayment.

Millennials and the housing market

Although there’s been a lag in the homeownership of millennials, this trend has increased dramatically during the economic recovery — though it’s still not at the same level as to how the ownership rates of the previous generations.

Research from Fannie Mae indicated the following observation:

Cohort analysis shows that the pace of young-adult home purchases accelerated substantially during the economic recovery, beginning first between 2012 and 2014, and then quickening further through 2016.

This is good news to real estate firms who are a bit pessimistic about the homeownership demand from the millennials. Many believed that the preferences of millennials have shifted from ownership to rentals.

As a digital generation, millennials use technology heavily in finding houses and properties to own.

According to a report from the National Association of Realtors…

99% of Millennials search on online websites for housing and home buying-related information compared to 89% of Older Boomers and 77% of the Silent Generation.

The same research indicated that millennials are more likely to use their mobile devices during the search. In this way, millennials are definitely changing the real estate world as many people call this “tech-oriented house-hunting”.

In addition, the hyperconnectivity of millennials, through the use of the internet, has also changed the communication methods with realtors. The realtors themselves have to adapt to the new methods and learn how to communicate via text, email, and instant messaging.

In regards to the location of the properties, millennials prefer a busy, modern city with stores and shops at every possible corner.

An interesting finding has revealed that a fifth of the millennials is more likely to buy their first homes near city centers. Though that’s not to say that they wouldn’t go on and buy their succeeding houses at distant locations.

So not only are millennials renting within busy city centers, but they’re also more inclined to buy homes in the same neighborhood.

Millennials prefer a flexible work-life balance

Most millennials live with their phone and other electronic devices day in day out. There’s almost no sense for most to change how they work especially when they can be done online — wherever they are physically and at what time.

One of the findings from PWC is the following:

Millennials do not believe that productivity should be measured by the number of hours worked at the office, but by the output of the work performed. They view work as a “thing” and not a “place”.

This leads to a growing movement for working remotely or shifting hours when needed. In effect, many companies now, especially tech companies that are hiring a majority of millennials, are offering working conditions that suit their taste.

In addition, it’s not only the pay and benefits that are attracting millennials to a company. Research indicates that they are more likely to work for a long time with a business that has a high-trust culture.

It’s fair to say that this work-life balance and workplace behaviour by the millennials are reshaping businesses in such a way that’s not seen before. They don’t seem as tethered to the traditional idea of “employment” as that of the past generations.

Millennials are changing how the world runs

Millennials are breaking norms and starting their own trends. As they maintain a large presence in the adult world, it’s expected for the workplace and industries to conform according to how millennials live, feel, and think.

Will the next generation — Generation Alpha — submit to how millennials want to live today? Or will they start a new trend of their own?

Written by Alan Anthony, proofread by Mahesh Kumar

Cloud RE is a tech-first Real Estate company working within space-as-a-service. We buy “undervalued” assets of tomorrow, today and build new innovative operators. Read more at cloudregroup.com