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Residential
Introduction:
As Gen Z grows, they've created a reputation for themselves by challenging the legacy structures that previous generations took for granted.
Zoomers, on the other hand, do more than sneer at their forefathers. They expect more. If something is broken, they will make every effort to repair it.
From luxury retail to transportation, their influence is driving seismic transformations throughout industries. It's no surprise that marketing, politics, and the entertainment industries are paying attention to Gen Z, whose spending power is anticipated to expand to $33 trillion over the next decade.
Now, Gen Zers are turning their attention to industries that have previously been closed to them, such as real estate investing.
Commercial real estate is swiftly returning to pre-pandemic levels. Meanwhile, commercial real estate investment is expected to hit a new high of about billions this year. While Zoomers, like millennials before them, aspire to own a home, the cost of entry is prohibitive.
- Homeownership is being redefined.
Zoomers have witnessed millennials struggle with a pay disparity that has made typical house ownership unachievable. Millennials own eight times less real estate and pay 39 percent more on a first home than Baby Boomers at the same age. Faced with similar issues, Generation Z is redefining what it means to be a homeowner.
They're using crowd funding and the sharing economy to buy houses, buildings, and even commercial properties for as low as $1 instead of buying a home to live in. Simply put, they've understood that just because they own a home doesn't mean they have to live there. In reality, there are benefits to not putting all of your eggs in one basket.
Traditional homeownership is stressful, time-consuming, and involves a slew of duties such as mortgage payments, property taxes, maintenance, and insurance.
Gen Z is experiencing the rewards of a profitable long-term investment without giving up the freedoms they enjoy now: tickets to an incredible performance, a closet full of elegant yet sustainable apparel, dinners out, vacation, and the latest gaming system by not living where they invest. They get the financial gain while someone else takes care of the landlord's duties.
- Transparency and community are top priorities.
Realizing that real estate investing is no longer just for the wealthy, Zoomers are taking the market out of the shadows and into the community.
The pandemic sparked renewed interest in the stock market. Young investors, confined to their houses and worried about their future, turned to technology to educate themselves and make their money work for them.
Rather than seeking assistance from traditional financial institutions, Zoomers are forming online communities on Reddit and Discord and using their power to educate their colleagues about what they've learned on TikTok. Gen Z can ask questions in a fashion that suits them, lurk, and engage on their terms in these online groups.
They're leveraging the internet to democratize investment and bring their colleagues into the fold, ever cognizant of the ability of technology to disrupt how things are typically done. Authority takes a backseat to the community when it comes to transparency.
Exclusivity is out, and inclusive investing is in, thanks to Gen Z's impact.
- They’re sharing the wealth.
Gen Z expects their ideals to be reflected in everything they do, from their jobs to their purchases, and real estate investments are no exception. Instead of considering how their purchases will profit them, they are considering how they will help others and the environment.
Conclusion:
The road to homeownership was in desperate need of a makeover. For far too long, whole populations have been excluded from real estate investment. But, ready or not, that's changing, thanks to the cultural transformation expected by Gen Z. If we follow their path, we may envision a future in which anybody who feels motivated to participate in their community can own a home.
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