Generation Y What Kinds of Real Estate Do

Generation Y: What Kinds of Real Estate Do They Really Want? M. Leanne Lachman Associates April 11, 2013

Who is Gen Y? 3. 3% Silent Generation (84+) 9. 7% Depression & War Babies (68 -83) 24. 6% Baby Boom (49 -67) 17. 2% Gen X (36 -48) 25. 0% Gen Y (18 -35) 20. 1% Gen Next (<18) Source: U. S. Census Bureau, 2010

Two Big Generations Gen Y Boomers 2010 Size 77. 4 million 76. 2 million Birth Years 1978 -1995 1946 -1964 Age Now 18 -35 49 -67 Hispanic 21% 10% Black 15% 12% Asian/Other 10% 5% Live to Work 16% 28% Work to Live 85% 72% Expect Never to Retire 10% 25%

Gen Y Descriptors • • • • Techno-savvy Social Connected High Maintenance Outspoken Educated Multi-cultural “Emerging Adulthood” High Performance Entitled Civic-minded Tattooed Pampered Optimistic Underemployed Entertainment-oriented

“When I was your age, I was an adult. ”

Pew Survey Results • Optimism undiminished from 2004 • 91% expect to sustain preferred lifestyles • Only 30% consider today’s job a career • Historically high % enrolled in school • 24% moved back with parents Source: Pew Research Center, December 6 -19, 2011 Survey

ULI’s Gen Y Surveys Nationally representative samples: • n=1241 responses – housing • n=1251 responses – retail Focus on people over 18 • Finished high school • Working, attending college or vocational school, parenting • 45% are 18 – 25 • 27% are 26 – 30 • 28% are 31 – 35 Confidence level of + 3% Distributed across U. S.

Current Gen Y Housing Source: ULI/Lachman Associates Survey, January 2013, n= 1251

Marital Status by Age Total Survey Single 63. 5% Divorced/Widowed 2. 0% Married/Partnered 34. 5% 100. 0% n=1251 Source: ULI/Lachman Associates Survey, January 2013.

Gen Y’s Self Characterization I consider myself: n=1251 Source: ULI/Lachman Associates Survey, January 2013.

Gen Y Housing Tenure by Age - 2010 Renters Owners Other* 38% 15% 47% 38% 44% 18% 30 -32 yrs 36% 54% 10% Total 38% 36% 26% 18 -24 yrs 25 -29 yrs *Living with relatives or in student housing n=1182 Source: ULI/Lachman Associates Survey, Summer 2010

Source: U. S. Census Bureau 17 20 16 20 15 20 14 20 13 20 12 20 11 20 10 20 09 20 08 20 07 20 06 20 05 20 04 20 03 20 02 20 01 20 00 20 Millions Gen Yers Turning 22 4. 6 4. 4 4. 2 4. 0 3. 8 3. 6 3. 4

Ava by Avalon Bay

Gen Y’s Pet Owners 71. 5% Dog(s) 53% Cat(s) 35% No Pets n=1251 Source: ULI/Lachman Associates Survey, January 2013 28. 5%

Gen Y as Consumers • 37% love to shop • 48% enjoy shopping when it’s required • Not accumulating possessions • Research online; may buy in stores • 61% view shopping as entertainment • Sensory aspects important

Gen Y’s Online Shopping Electronics/Computer Equipment 44% Women 34% Men 54% Gifts 43% Personal Clothing 41% Women 47% Men 36% Books 39% CDs/DVDs 33% Source: ULI/Lachman Associates Survey, January 2013

Gen Y’s Sharing Economy “Access to stuff we want without having to own it” • Rented dresses (Rent. The. Runway. com) • Zipcars • Tools & electronics • Chefs & errand runners • Toys (Baby. Plays. com) • Modern art “Owning less offers more”

Gen Y Hotels • • Aloft Indigo Hyatt Place Gen 4 New York’s Standard & Ace Hotels Motel One Yotel

Gen Y as Office Users • <100 sq ft/person • No private offices • Counters replace desks • Creative interaction/fun spaces • Work from home/car/Starbucks • Green is preferable • Incubator/temporary spaces in demand

Zynga Headquarters

Zynga Interiors

Gen Y as Office Users • <100 sq ft/person • No private offices • Counters replace desks • Creative interaction/fun spaces • Work from home/car/Starbucks • Green is preferable • Incubator/temporary spaces in demand

Why We Call Them Gen Y • Y should I leave home and find my own place? • Y should I get a car when I can borrow yours? • Y should I get a roommate? • Y shouldn’t I have a dog? • Y shouldn’t I treat myself well? • Y should I stop traveling?

Generation Y: What Kinds of Real Estate Do They Really Want? M. Leanne Lachman Associates April 11, 2013