“Work, live, play” – this is one of the mantras that most millennials live by. When it comes to finding the best and most desirable to work or live, real estate agents have emphasized the significance of the locations. But knowing what constitutes a suitable location can vary depending on the age of the person looking for a property, their needs as well as their interests.
In 2015, kids born between 1984 to early 2000s or commonly known as millennials surpassed the Baby Boomers or people born in 1940s to 1960s as the biggest generational group in the United States, according to the latest census data.
Combined with the increasing numbers of the senior citizen or Baby Boomers contemplating their retirement or empty-nest status, that is a considerable number of potential buyers and renters. Members of New Jersey’s real estate community are trying to rethink their strategies as well as adjusting to the fast-changing demands of today’s workforce and consumers.
According to the Regional Plan Association’s February 2016 report titled, “The Unintended Consequences of Housing Finance,” 56% of Millennials and 46% of Baby Boomers prefer to live in a mixed-used, neighborhood with easy access to transportation, nightlife, and supermarkets.
And while there is a shortage of multi-family properties, the state’s current supply of single-family houses is estimated to increase in the future, even exceeding the demand for the next 25 years. According to housing experts, a new strategy has been proposed to repurpose selected commercial and office buildings into multi-family houses.
After 2018, the number of residential units more than doubled to more or less 15,000 total units operating or are still in construction. This move reflects the real estate industry’s focus on waterfront properties along the Gold Coast that includes Hoboken, Jersey City, West New York and Weehawken. Even Bradley Beach real estate is starting to gain steam.
The millennials or the younger generation of real estate buyers want to work or live in transit-based areas, most especially in places near the Hudson River. The younger generation has genuinely embraced the concept of “work, play, live” and they are expecting that the area where they plan to live will be closer to where they work or closer to the public transportation.
The place also needs to be close to where bars and restaurants are located because millennials love to party or eat out after their work is done. It is all about convenience for these Millennials. Right now, almost all mixed-use construction project in New Jersey is targeted towards the younger generation.
The property is carefully designed with a lot of efficient unit sizes, different amenities to enhance people’s social living preferences as well as contemporary finishes. Real estate developers are also starting to develop retailers, communal activities, restaurants and workspace centers around the residential site.
Tax abatement, market demand as well as strong support from the state to increase redevelopment efforts, combined with the state’s location and connectivity to one of the busiest and the most expensive city to live in, New York City, has helped increase important residential and commercial projects in the downtown area and around Journal Square.
In 2015, a company called Kushner Companies bought the One Journal Square property, jump-starting a dead residential project and announced a plan for a 40-story residential building in Journal Square. The company also collaborated with KABR group to start a project along the Trump Bay Street, a possible 50-story luxury tower.
Another project is also starting along Journal Square, a mixed-use real property project that features a 54-story tower along with 538 apartments building with a direct connection to the adjoining PATH Station from the KRE Group and their partner, the National Realty Advisors.
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According to real estate experts, a notable change in land planning is happening. A lot more balanced downtown area is the key to development. Millennial’s philosophy of lifestyle convenience is driving it. Since not all young people can afford to live in cities with a high cost of living, real estate developers focus on redeveloping areas near public transportation, close employment areas, bars, and restaurants.
The property should also be walkable to the downtown area. In return, most successful suburban locations see the result and they are working on mixing the traditional suburban environment with the urban or big city lifestyle.
While the preferences and the trends from the younger generation that include renting versus owning residential property, orientation in the urban transit village and marrying and building a family, might suggest a potential problem with the single-family housing market in the stat’s suburban communities, the situation is not that simple.
Issues have been raised over the capability of turning urban communities to accommodate the younger generation or the Millennials and their needs. We believe that owning a home is any less desirable in the younger generation compared to the Baby Boomer generation.
No complicated model or pattern can describe how the young people are looking for properties, yet real estate developers are providing offers for a full spectrum of demand. Buying a new property or new house is one of the most common milestones that most young adults that have an outstanding student loan debt will put off (along with a new car, a million dollars in their bank account, and paying their student loan).
The recent recession of 2008 that results in the plunging of home values are combined with the increase in employment competition, make property ownership lose its appeal temporarily. However, the housing market has been leisurely and steadily improving for the past seven years.
Do you want to know the cause of the 2008 great recession? Visit https://en.wikipedia.org/wiki/Causes_of_the_Great_Recession.
It seems unbelievable, especially to people buying real estate in hot markets like New York or San Francisco, but the United States houses remain very affordable. This affordability is giving the Millennials a second thought on whether to rent, live with family or to buy and own a home. Despite the younger generation’s difficult start into the real estate world, there are still signs of hope that most next generation of real estate property buyers is ready to capitalize when it comes to home ownership.
