First off the definition of gen Y as found on Wikipedia.
Generation Y, also known as the Millennial Generation (or Millennials),[1][2] Generation Next,[3] Net Generation,[4] Echo Boomers,[5] describes the demographic cohort followingGeneration X. As there are no precise dates for when the Millennial generation starts and ends, commentators have used birth dates ranging somewhere from the mid-1970s[6] to the early 2000s.[7] Members of this generation are called Echo Boomers, due to the significant increase in birth rates through the 1980s and into 1990s, and because many of them are children of baby boomers.[8][9][10][11] The 20th century trend toward smaller families in developed countries continued,[12][13] however, so the relative impact of the "baby boom echo" was generally less pronounced than the original boom.
Ok so now we are clear on the definition of Gen Y, I came across an interesting article about their habits and how they will reshape work places and market places.
Here are a few items related to the real estate industry I found intersting.
A Value-Conscious Crowd
When it comes to money, Gen Yers are different from their elders, but may come to resemble previous generations more as they pass through the life stages of marriage, family, retirement and so on.
For now, they're less acquisitive than their Baby Boomer parents, steering away from what they see as conspicuous consumption. When they do spend, Gen Yers are value conscious — maybe because technology makes finding the best buy a no-brainer.
Traditional advertising doesn't have much street cred. Millennials are more likely to buy based on peer recommendations. And they're a bit more willing than older shoppers to pay higher prices to protect the environment.
Home Is Close to the Hive
Despite the Great Recession, Gen Yers aren't shying away from buying homes, and there's evidence that some are doing so earlier than their older siblings and parents. Nudged to take the leap by bargain basement prices and Uncle Sam's federal tax credit for home buyers, about one in three 18- to 32-year-olds is already a homeowner. Most, however, seem to want to follow the typical pattern of buying at about age 30, assuming the sour economy and tighter lending standards allow it.
The homes they buy will often be smaller, and on smaller lots, than typical. And no long commutes for them. Look for Gen Yers to seek close-in suburbs with a walkable urban center offering restaurants, shops and other gathering places. Some are even passing up car ownership altogether.
Risk-Averse Investors
Millennials are more risk averse than previous generations were at the same age. About half of their nest eggs are in bonds, money market accounts or cash. Even though they have decades to go before retirement, only 22% of investors under age 35 — many fewer than in 2001 — say they're willing to take on substantial risk.
One reason: They've seen little or nothing of the upside of long-term investing in stocks. In the decade since the oldest Gen Yers entered the workforce, the stock market has languished. Worse, many saw their parents' savings evaporate in recent years. If that reluctance to invest in the stock market lasts, many will come up short in their golden years.
Keep these these things in mind when planning the future of your business. Make sure you incorporate value into your offering.
You can read the entire article here. http://finance.yahoo.com/career-work/article/111715/make-way-for-generation-y
