A Gen Z Housing Scenario I Can't Stop Thinking About

As someone who's always been fascinated by emerging trends and possible futures, I've recently found myself captivated by an idea I'm calling "NestFlex." It's not a real thing – at least not yet. It's simply an invented term for a housing concept I've imagined based on various trend stories I keep noticing about Gen Z and their lifestyle preferences. (Yes, I still love to make up words, friends.)

Here's the story that's forming in my mind:

Contrary to the stereotype of Gen Z living in their parents' basements, I'm seeing myriad reports that they're actually driving rental apartment demand, as Millennials increasingly move into homeownership. Somewhat recent data from the National Association of Realtors supports this trend, showing that Millennials made up the largest share of homebuyers at 43% in 2022, up from 37% in 2021. This shift is creating space in the rental market that Gen Z is eager to fill.

But the Gen Z idea of "home" seems somehwat different from previous generations.

From what I've read and observed, Gen Z craves experiences and community. (Sure, we all do, but it’s a primary variable for Gen Z. They’re the bellwethers here.)

I recently came across an article mentioning that half of Royal Caribbean's passengers are now millennials or Gen Zers. It’s had me thinking about how this preference for all-inclusive, community-centric experiences might translate to housing.

I've also noticed, via data and anecdote, that Gen Z appears to be innately budget-conscious. A 2021 study by Bank of America found that 80% of Gen Z are already saving money, with 70% having savings goals. Nice! Yet, from what I can tell, they're loathe to compromise on quality or experiences.

The hard problem of affordable housing? Maybe. And maybe not.

This generation also seems to be redefining luxury. While traditional luxury markets appear to be struggling with flat growth, Gen Z seems more interested in accessible, experience-based living. They're heavily influenced by social media too. According to a 2023 study by a provocatively-named entity called Influencer Marketing Hub, 68% of TikTok users have been convinced to buy a product after seeing it on the platform. This got me thinking: what if housing bore the stamp of approval of a celebrity or influencer? Or even more intriguingly, what if lifestyle brands with implied ethos created housing concepts? Imagine Lululemon apartments focused on wellness, Liquid Death complexes with an edgy, sustainable vibe, or sleek, minimalist Apple housing. The possibilities seem endless. (And it’s not as if Jimmy Buffett hasn’t already explored some of this for Boomers.)

?All of this has led me to imagine NestFlex - a housing concept that might appeal to this generation.

In NestFlex, I envision a new kind of living space that combines the communal vibe of boutique hotels with all-inclusive pricing. Picture smart-designed micro-apartments complemented by vibrant common areas, co-working spaces, and wellness facilities. Community events, networking opportunities, and healthy food options could all be part of the package, wrapped up in a predictable monthly payment. And perhaps, these spaces could be curated or endorsed by brands or influencers that resonate with Gen Z values and aesthetics.

Already, we're seeing ventures like Common, The Collective, and URBY that are exploring elements of this concept. Common offers fully furnished shared apartments with community spaces in major US cities. The Collective, based in the UK, provides flexible stays with communal areas and curated events. URBY develops apartment communities focused on social spaces and amenities like communal kitchens and urban farms. While these ventures are pioneering aspects of community-focused living, I believe there's still room for a more comprehensive, Gen Z-tailored approach.

In my mind, NestFlex isn't just a place to live; it's a lifestyle solution. It addresses what I perceive as Gen Z's desire for experiences, community, wellness, and financial stability, all under one roof. It could also offer a sense of identity and belonging through brand association.

As I've learned time and again, today's wild speculation often becomes tomorrow's reality.

I welcome any thoughts. And please feel free to let me know all the ways and places where this is already happening! Y’all are collectively smart!