Millennials Show Preference for Compact, Urban Homes

Americans who are between the ages of 18 and 34 — known as Generation Y — could be a “game changer” in the U.S. real estate market, according to Urban Land Institute. As such, ULI researchers are taking careful note of this generation’s preferences when it comes to homes.

A new ULI survey of about 1,200 Millennials shows that 59 percent of those surveyed prefer a home in a neighborhood that has a variety of housing types. For example, 62 percent said they prefer mixed-use developments with shops, restaurants, and offices, and 52 percent say they like pedestrian-friendly neighborhoods.

The survey also showed that 55 percent of Millennials said they want their home to be in close proximity to public transportation. ULI researchers also note that this generation is more likely than older generations to live in apartments and in downtown areas.

Patrick Phillips, ULI’s chief executive, says he believes the Millennials represent a big change from other generations, in that this group will continue to prefer more compact, urban homes, even later in life. He says that will likely lead to more mixed-use development.

“Over time, we’ll see a return to a more compact, metropolitan development pattern,” Phillips said. “We’ll see less sprawl at the edges … the market preferring solutions that are closer in.”

Source: “Is Generation Y a ‘Game Changer’ for Housing?” The Wall Street Journal