Generation Z is just about ready to enter the housing market. The impact of this group of young people is not to be underestimated as they are the largest generation in US history. Born between 1997 and 2012, this generation will have a brand-new set of demands from their builders, and construction companies should start to consider their needs when developing new homes.
What makes this generation unique is the influence of technology, climate change and the COVID-19 pandemic. The pandemic will have a profound effect on this generation at it occurs in their formative years, robbing many of graduations, months of education and social development. We can’t predict precisely how the pandemic will influence Gen Z but we can assume they will graduate into a recession—the second of their young lives.
For Gen Z, the most pressing issue is climate change. A recent study found that 41% of respondents saw climate change as the most important issue facing the world with 57% seeing global warming as the most pressing environmental concern. Gen Z home buyers will want homes that are energy-efficient and built with materials that are sustainable.
Home builders will also be more accountable for their own impact on the environment. Using energy-efficient vehicles and recycling used materials will not only save you money, but be a positive marketing advantage in the future.
Technology is another way in which Gen Z will be changing the way homes are built. Smart home technology is a must for a generation that has grown up with screens. Luckily, wireless smart home technology makes this a relatively inexpensive and easy addition to your new builds. HVAC, lighting, security and entertainment should be integrated into new smart home design.
We already know that 3 out of 4 millennials are willing to pay more for things that are sustainable, so we can assume Gen Z will be willing to make the environment a priority. While we can’t predict now the influence COVID-19 will have on the construction industry and the way we build houses, we can evolve to meet the environmental needs of future home owners. Doing so not only improves your carbon footprint, it also has the potential to save you money and make your company more appealing to younger buyers.