Ofir Hillel, broker/owner of Orange Key Realty, agrees that the next generation of potential home buyers prefer to live in developments with an array of housing types close to shops and mass transit, a recent survey shows. Is this bad news for the baby boomers who will eventually be looking to sell their big suburban houses?
“It’s too soon to tell because the generation that is now roughly 18 to 34 is still moving into its child-raising years. It’s very hard to imagine before you have kids what you will want when you have kids,” he says.
“It’s likely that this generation, who are known as Millennials or Generation Y, will force some type of shift in the housing market. It is more racially and ethnically diverse than previous generations, as well as more deeply affected by the recession than older adults,” he adds. “I do think their preferences are going to result in sustained change. This group is so different from previous generations.”
“Our findings reveal that the next generation does have a preference for urbanstyle living. About 60 percent say they prefer a mix of housing choices, along with proximity to shops, dining, offices and transit. Seventy-five percent said they valued walkability — a preference that jibes with this generation’s declining number of licensed drivers,” adds Michael Matthews, broker/owner. “Of the 63 percent who said they planned to move within the next five years, nearly 40 percent expect to live in some type of multifamily housing. This doesn’t necessarily mean this generation would move en masse to city locations. These young buyers may also be drawn to compact development in downtown suburban locations.”
It appears, from related surveys, people surveyed often say they want to be able to walk to do shopping and banking, and be in close proximity to mass transit.
“Gen Y may turn out to have unrealistic expectations about what they can afford,” states Matthews, “but that doesn’t mean they want something radically different. It’s too soon to tell whether there is a permanent shift.”
Orange Key Realty’s staff of sales and broker associates can be reached at either 863 Georges Road, Monmouth Junction (732-297-6969) serving Middlesex County and 60 Main St., Freehold (732-863-6969) serving Monmouth County, or www.orangekeyrealty.com.