Generations and Real Estate: How Generational Shifts Shape Real Estate

Here’s another article from a Gen Z—, not necessarily attacking Baby Boomers or Millennials, but rather starting a conversation about generations and real estate… I hope. ????

One thing is certain: generational trends and preferences have long influenced the real estate market. Different age cohorts, whether by design or coincidence, tend to collectively jump on trends, shaping demand in significant ways.

Historically, for example, Baby Boomers drove suburban expansion, prioritizing large family homes and single-family dwellings. This generation's focus was on ownership, stability, and the "American Dream." Or in our context “The Only Dream” —While Millennials, on the other hand, leaned toward urban living, choosing smaller homes or apartments and placing value on walkability, experiences, and convenience.

Many Millennials have also expressed frustration about how much harder it is to buy a home compared to previous generations, citing rising prices and stagnating wages. Gen Z appears to share this sentiment. However, there’s been a noticeable shift in priorities: the move from a homeownership mindset to a "rent and move" culture. Flexibility, fueled by remote work and diverse lifestyle choices, is becoming the norm among these young boys and girls.

Some have even opted to live at home longer, cohabiting with family. While this strategy might stretch the wallet (or parental patience), we all know it’s not sustainable. After all, even the most loving parents will eventually start to passive-aggressively remind you about "all those lights left on… and water used while in the shower." ????

When we think about the influence of generations—Baby Boomers, Gen X, Millennials, and now Gen Z—it’s clear that their values, beliefs, and lifestyles leave lasting imprints on the real estate market.

Baby Boomers representing a significant share of wealth today and fueled suburban growth while prioritizing homeownership. In fact, according to recent studies, Baby Boomers still own a majority of residential properties in many countries, shaping inventory and pricing trends even today.

Millennials on the other hand, now the largest segment of the working population, control a substantial portion of economic activity, embraced renting, urban living, and shared spaces, driven partly by financial constraints and partly by changing preferences.

And then the crazy ones, Gen Z. This is the digital-first cohort values flexibility, tech integration, and environmentally friendly choices. Their entry into the market will likely bring major shifts in demand, which shots exactly is what I am excited to see.

The million-dollar question —and literally because you could profit from this is, how will Gen Z impact real estate trends and market behaviors?

?Will they become the Airbnb generation, prioritizing short-term rentals that favor flexibility over ownership, as the concept of "home" becomes more fluid? Or will they lead a movement toward country homes, valuing space and tranquility over urban convenience, due to the rise of remote work?

Maybe they will champion eco-friendly construction, pushing for energy-efficient homes, shared spaces, and even push to live in Pods on mars if Elon Musk can get us there— which by the look of things, might not be so sci-fi after all.??????

This lands me calmly (though dramatically) to my question: How do you think Gen Z will shape real estate trends and the market at large?

I’d love to hear your thoughts—drop a comment below! Until next time, I remain your friendly Gen Z realtor. See you in the next post!