By Jessica Fiur, News Editor
San Diego—Generations X and Y are having a big impact on the California housing market, according to a new report by the Urban Land Institute (ULI). In fact, it seems these generations are completely changing the housing landscape.
“It’s especially Gen Y because it’s such a large generation,” Kate White, executive director, ULI San Francisco, tells MHN. “Because it’s so large they will have a very formative impact on real estate and demand.”
According to the report, “The New California Dream: How Demographic and Economic Changes May Shape the Housing Market” by Arthur C. Nelson, the housing preferences are changing so quickly that it is outpacing the rate the housing stock can be adapted. There is an increased demand for multifamily, in addition to townhomes and duplexes, which is caused by Gen X and Gen Y who are more likely to be living in smaller housing than older generations.
What will especially increase in demand, according to the report, are transit-oriented developments (TODs).
“Everything points to Gen Y wanting a more mobile lifestyle, a more urban lifestyle,” White says. “Nothing in the short term points to homeownership.”
This comes as no surprise to ULI CEO Patrick Phillips, who said in a press statement that “Generation Y, in particular, will have an outsize influence on consumer demand. It is the largest demographic group this country has ever seen, and their preferences will influence every aspect of American society. Quality of life is a paramount concern to much of this generation, and they will be drawn to places that offer the best work-life balance.”
Additionally, TODs could become employment hubs, according to the report. Because of an increase of residents, these TODs could attract about 4.5 million jobs.
The ULI report was funding by The Rockefeller Foundation and analyzes demand and supply in areas served by the Association of Bay Area Governments, the Sacramento Area Council of Governments, San Diego Association of Governments and the Southern California Association of Governments.