The major perception regarding Millennials and Generation Z “Millennials Z” is that they don’t have patience. We must consider that the Millennials and Generation Z are representing the most dominant numbers in the population. So, who classifies as a Millennial Z?
Let’s look at some stats regarding Millennials Z’s. Deloitte did a survey and report in 2019 called the “2019 Deloitte Global Millennial Survey” and I’m only going to consult the South African results as our readership is South African but will compare to the global stats in some cases to ascertain fundamental differences. Millennials are global citizens and are open minded. Only 67% want to own a home and the international equivalent is 49%, 67% want to earn a high salary and be wealthy, ironically the international equivalent is only 52%.
Only 58% want to start their own business and internationally this is even less at 38%. Here is the kicker, in SA a mere 17% are happy with their lives and internationally only 29% are happy with their lives. The question is, why are so few of Millennials happy with their lives? Through all the research I did, I’m starting to think that this current world is not created to suit their needs. On the flip side, they have through modern technology and social media, online shopping, on demand transportation, short term accommodation and delivery services to name a few plusses that feed into the notion of “impatience”. They can chat to anybody they wish to in a blink of an eye. Again, the question comes to mind, what is making them so fundamentally unhappy?
Although they seem to be very unhappy, there is no shortage of confidence; 88% of SA Millennials believe they have all or some of the skills and knowledge required for the working environment shaped by industry 4.0, globally it’s 81%. Around 49% plan to leave their current employment within two years and 28% will leave after five years. 96% in SA and 84% globally would consider the “gig” economy. What is the gig economy? It’s a labour market whereby people provide services by freelancing, flexible and on-work demand instead of the regular eight to five work model. The gig economy is growing with 15,6% of the UK’s and 34% of the US work force in this type of work arrangement. Considering this new trend, should we not provide studies or workspaces in the homes we develop instead of just an additional bedroom; say one bed en-suite, one study with guest toilet and possibly a meeting room.
Are Millennials fundamentally different from Generation X and Baby Boomers? The answer is, yes, they are profoundly different!
It is believed by those in the know that Millennials will change the world more than any generation before. So much so that it is believed that Millennials are changing and will further change travel, hospitality, real estate and accommodation, transportation and higher education. Considering the above, is it not time that real estate and financing houses start changing the way we think about office and workplace facilities and residential amenities? Architects have wanted to explore new boundaries, but real estate developers and bankers want proven monotonous developments that have been tried and tested over the years.
From spending time with Millennials, those old proven concepts are not what they require and at some stage it is going to backfire horribly. They are educated and tech-savvy and know what they want. The problem is, they can’t find it and that is probably one of the major contributors to a mere 17% being happy with their lives. Their homes and workplaces must provide the feeling of connectedness at all times. The same immediate gratification that they have access to through Uber transport and now Uber eats, social media, Google to name a few, they require in the homes and workspaces. They want to be able to emulate that instant gratification from a distance and experience it when they get there.
They don’t want to have to get home and then start preparing a meal or walking into a home or office that is not the favourable temperature. Connect the appliance to a home management system that has Wi-Fi capability for them to remotely switch on appliances or air conditioners, coffee machines and so forth
They are advanced and highly intellectual and we should treat them that way. They earn a lot more than we did at the same age and they are prepared to pay for it. They are very environmentally in tune with the threats of climate change and global warming, they want to contribute by not adding to the problem. Recycling facilities are very important, so too are building management systems that manage energy and water wastage to name a few solutions. For example, an energy usage cost related to daily hours. If you only run your dishwasher and or washing machine between 10pm and 5am in the morning the cost of energy is at a cheaper rate than the other periods. The technology is here, although still rather expensive, but if we all start implementing them now the costs will drop dramatically. This is a “feel good” experience for Millennials now and even more so for Generation Z.
None of us have ever considered the idea of including Millennial Z’s (prospective clients) in the design process and actually designing a product that will possibly increase their happiness levels. Millennials want to be part of the brand. They value their input, and that creates loyalty. The idea that we as Generation X and Baby Boomers believe we know best that they are too young and wet behind the ears doesn’t fly anymore. That’s the old way. When I suggest Millennials Z’s, I mean making prospective clients part of the design. If you think of it, real estate developers and bankers are fitters and turners, we fit happy Millennials into our outdated real estate solutions and turn them into unhappy frustrated people.
Every real estate developer should take note and learn to recognise their preferences and determine how we can cater for their specific needs and likes. The first to adapt and provide the correct product that will uplift them will not only survive but increase revenue.
Author: Rodger Warren
Source: Assetmag Issue 79