There is a “generational disruption” according to the Counselors of Real Estate, and it’s impacting the commercial real estate market. 74 million baby boomers and 75.4 million millennials are yanking the property market into two different directions.
Here’s what investors in the Triangle should know about these two converging markets.
The Baby Boomer Generation
Baby boomers are individuals who were born between 1945 and the late 1960s. Studies show baby boomers are now part of those who are moving from outer suburbs to inner cities.
The Millennial Generation
Generally speaking, millennials are people between the ages of 18 and 32. According to the US Census, Wake County’s population grew by over 43% between 2000 and 2010. Half of these new arrivals are moving into apartments and condos, most of which being millennials. Millennials are the future buyers, investors and leaders of the country, which could greatly impact the real estate world.
The two age groups want fundamentally different things. Regarding living space, baby boomers typically want more space and are willing to pay more than a millennial who is looking for a smaller, more affordable unit. The generational divide also affects the workplace. Whether it is sharing office space or working directly with others, boomers and millennials have different taste in how they wish to work. For instance, younger people tend to enjoy collaborative workspaces, while older individuals appreciate their privacy when it comes to the office.
With these two generations both relocating and crossing paths, commercial real estate investors have even more to consider when it comes to how and why they should invest in particular ventures. The marketing side of real estate is also impacted. Marketing and development strategies like design and location preferences are ultimately shifting to assist prospective clients’ needs.
Depending on a particular business or goals, investors need to learn how to address the generational divide to achieve success. The CRE agents at Century 21 have the expertise to help navigate this converging market. Contact us for more information.