Millennials – also known as Generation Y, because they come after the so-called Generation X - is a term coined for a generational extract of people born at the end of the first Millennial (after Christ).
Different from the Baby Boomer generation, that is visibly limited by the end of the World War II and the beginning of the Vietnam War, the cutoff point between Generation X and Generation Y (Millennials) has been debated by several scholars and researchers. Some say the passing of the baton happened in 1981, others in 1977. But most agree that it ends in 2001, with the World Trade Center terrorist attacks.
Currently, Millennials amount to more than a quarter of the population, but the problem is that the expectations regarding them have not been met. The way they consume things contradict the advertising theories and wishful thinking set by their predecessors, as Millennials relies heavily on peer networks for referrals, information and opinions and tend to refute former sources of “authority”. They are also much more health-conscious, big believers in a healthier work culture, with fewer hours of work, more break times and even an understanding that they should only work with what they like and believe in.
A lot of people tend to simplify this attribute by saying they’re spoiled, but that’s far from true. The fact is that (i) the MIllennials grew up watching a lot of ethical and corruption scandals perpetrated by its predecessor generations, making them shift their faith and allegiance from most of the symbols worshiped by Baby Boomers and Generation X’ers; and (ii) the Generation Y (Millennials) is the first generation to ever have a worse financial expectation of future in relation to the generation that came before. With Agequake, they’ll probably work their life off only to reach retirement and receive nothing because social security funds will have been spent by Baby Boomers and X’ers. Not to mention the absurd cost of health care, that makes them one accident away from going bankrupt. Add the fact that Millennials are also the most diverse generation ever because of the rise of immigration to the US in the 1980’s and 1990’s, and you understand why Millennials don’t put too much faith on the classic capitalism way, preferring brands that show social awareness, applauding social government actions (because they need all the help they can get), and investing on self-improvements to hopefully find a way to cut the line to success via disruptive businesses; by just standing in line, they will collectively grow poorer and poorer.
To Real Estate, the Millennials could have been tragic. With no money to buy, the market would have to adjust on the low and devalue itself. But thanks to the fact that the Baby Boomers are living longer and with more money than ever, there have only been hiccups for now. Millennials have been more pursuant to the rental market; with the financial hardship they grew up accustomed to, they’ve become a really risk-adverse generation and to make it big in real estate you do need to take some risks. So, they prefer to pay rent and have money to make long trips; or even move from time to time, from a state to another, so they have different experiences.
Now, Luxury Real Estate has suffered differently from the specifics of Millennials. For the ones that rise and become financially successful, Luxury Real Estate had to change its features, almost creating a specific niche. That is because Millennial ’s preferences depart big time from the previous generation’s and explain the rise of Vanilla Shells in Luxury Real Estate, the increased necessity of Smart Home Devices, and altogether healthier kind of living.
Real Estate Question:
What generation do you think makes the best real estate agent? Whatever it is, The OFFICIAL Real Estate Directory® has got agents from all of those generations! Pick your favorite!