Different jobs are available to Gen Y than were 20 even 10 years ago.
Authentic is cool. Authentic is dorky. Authentic is hip. Authentic is truthful.
Nerd just means that you are tech-savvy and internet-iliterate. Nerds have first-dibs on information and information is power. In previous generations, the ones doing the content filtering where mostly corporations and big media. With Gen Y and its connectedness, that influence has trickled down and spread out. Social news and networking sites have democratized the process, making Generation Y the first generation where broadcasters can actually be the last to hear about newsworthy items.
Region of corporate innovators: Amazon, Expedia, Starbucks, Microsoft Rapid growth in biotech Thousands of jobs in music and interactive media
Generation Y – This tech-savvy generation has a population of about 86 million, more than the baby boomers. Gen Yers place high value on community; on places (either virtual or actual) to gather and share information, ideas and opinions. As they enter the housing market, they will be far less interested in homeownership than their parents were when they were young adults. (The recession, said McIlwain, has “tempered the interest of Gen Yers in buying their own homes and they will be renters by necessity or choice for years ahead.”) Despite having small incomes, Gen Y will gravitate toward walkable, close-in communities, choosing isolated housing on outer edges only as a last resort because it is the most affordable. Green, “net zero” homes powered exclusively by alternative energy will have strong appeal to this group. pedestrian-friendly, transit-oriented, mixed-use environments that de-emphasize auto dependency, whether the location is urban or suburban, McIlwain noted. Among the majors factors driving urbanization: 1) growth of two-person households and single households without children (among both baby boomers and Generation Y); 2) a halt to baby boomer migration to the suburbs; 3) the likelihood of Generation Y to rent rather than own; and 4) public policies encouraging compact development.
Gen Y Brown Bag
<ul><li>What we’ll share… </li></ul><ul><li>Characteristics of Gen Y </li></ul><ul><li>Why this generation is important </li></ul><ul><li>5 Rules of Engagement </li></ul><ul><li>What they mean for the real estate community </li></ul><ul><li>What we hope you’ll take away… </li></ul><ul><li>A new perception/appreciation for this Generation </li></ul><ul><li>Ideas for how to relate to this audience </li></ul><ul><li>Questions to ask yourself when developing your strategies and programming. </li></ul>
They are 28% of the population Gen Y Born roughly between 1980 and 2000 (Under 30 yrs old) $100/weekly in disposable income = $150 billion/year Who is Gen Y? They influence another $50 billion in family purchases. Gen Y outnumbers the baby boomers
<ul><li>Thought they’d be to the ones to transform the world. </li></ul><ul><li>Gen Y is the “everybody is a winner” generation. Criticism/performance reviews can be seen as suggestions. </li></ul>Us (Gen X) vs. Them (Gen Y) <ul><li>Influenced by internet, cable TV, 9/11, Columbine, environmentalism, diversity is the norm. </li></ul><ul><li>Influenced by personal computer, AIDS, single-parent families, growth in multi-culturalism. </li></ul><ul><li>Entered into the hierarchical corporate structure, paid their dues, waited their turn. </li></ul><ul><li>Different job opportunities were available, entrepreneurial spirit, don’t wait, do. </li></ul>
Gen Y has a completely different mindset about work than their baby boomer parents and Gen X. <ul><li>What they DON’T want… </li></ul><ul><li>They do not believe in becoming “slaves” to any company. </li></ul><ul><li>They will not be bound by a steady paycheck. </li></ul><ul><li>They do not want to climb any ladder, corporate or otherwise. </li></ul><ul><li>What they DO want… </li></ul><ul><li>They believe in pursuing the best opportunities for themselves, even if that means changing jobs two or three times a year. </li></ul><ul><li>Perks! Experience-based benefits. </li></ul>I work at Google. I can set aside 20% of my time to work on projects of my own choosing. I work at zappos and get massages in the “nap room”
Authenticity trumps celebrity Niche is the new norm Bite-size communications dominate Personal utility drives adoption Consumers own brands 5 Rules of Engagement…
Gen Y responds to honest, relevant messages from peers over marketing speak and celebrity endorsements. Authenticity Trumps Celebrity The demise of the glamorized celebrity -Only 15% of college students agreed that a celebrity’s endorsement of a product would influence their opinion of that brand.* The decrease of trust in advertising -Increasingly trusts recommendations from fellow consumers. Increase in social connections -In 2008, 14-24 yr olds have an avg of 53 online friends that they consider close friends. - In 1998, they only frequently communicated with 5-10 good friends in their school. *www.mryouth.com
Niche is the New Norm Gen Y does not form a mass market. They relish in choices and look for products and services that speak to them personally. What fuels this insight? There is a lack of one clear path. - Committed to following their hearts - 58% move home after college. - 36% stay at their first job less than a year. Online Social Communities Foster Niche Interests - Fitting into a group is no longer confined to high school cliques. - The term “cool” holds less weight with this generation. Options. Options. Options. - Demand products that more closely fit their individual needs. - Amazon.com Buy.com Ebay.com…
Bite Sized Communications Dominate Gen Y digests short, personal and highly relevant messaging in bulk while growing increasingly adept at blocking out noise. Gen Y lives in a micro-messaging culture. - Teens send 2.5 texts for every e-mail adults send. - IM, Facebook, Twitter, Foursquare, Gowalla Gen Y = ADD - Students jam 222 hours of activity into their 122 waking hours. - This consumer will at best provide divided attention. - Can deal with up to 5 messages at a time. Deluge of Messaging - The know that they’re the target and they’re an expert of tuning it out. - People today are exposed to over 15,000 messages each day. What fuels this insight?
Personal Utility Drives Adoption Gen Y chooses to consume what they find useful in their lives over manufactured needs. What fuels this insight? <ul><li>Decreased power of the brand . </li></ul><ul><li>62% of global teens are apathetic about marketing and advertising. </li></ul><ul><li>They’re not anti-brand, they just don’t care. </li></ul><ul><li>The Facebook Economy . </li></ul><ul><li>Example of the transfer from a push to pull economy. </li></ul><ul><li>Tools are being created to hyper-personalize communications and leverage the most trusted source: word of mouth. </li></ul><ul><li>Lower barriers to entry for entrepreneurs </li></ul><ul><li>Find products that meet needs they didn’t even know were there. </li></ul>
Consumers Own Brands Gen Y will speak about, repurpose and associate with your brand as they see fit. What fuels this insight? <ul><li>The Rise of the Creative Class.. .to new heights </li></ul><ul><li>Expected to grow by 25% over the next decade and already controls nearly 70% of US buying power. </li></ul><ul><li>Empowered by new technologies, consumer-generated content, blogging, product reviews, etc. </li></ul><ul><li>Social Technology Fuels Sharing </li></ul><ul><li>Advertising is now (back) in the hands of the people. </li></ul><ul><li>Viral content (Peer-to-Peer) </li></ul><ul><li>Social media, blogging, easy-to-share. </li></ul><ul><li>Consumers Will Repurpose Brands as They See Fit </li></ul><ul><li>50% of teens can be considered content creators. </li></ul><ul><li>YouTube, Fan Pages, Online Groups </li></ul>
<ul><li>Authenticity Trumps Celebrity: </li></ul><ul><li>Is my audience really motivated by celebrity endorsements? </li></ul><ul><li>Am I utilizing trusted means of communication, like word of mouth? </li></ul><ul><li>How am I leveraging the increase of peer-to-peer communication? </li></ul><ul><li>Niche is the New Norm: </li></ul><ul><li>Am I tapping into niche communities that have an affinity with my brand? </li></ul><ul><li>Is my product differentiated enough to serve niche markets my customer is a part of? </li></ul><ul><li>Bite-Sized Communication Dominates </li></ul><ul><li>Can my message be easily passed along by short communications? </li></ul><ul><li>Can my message be heard and understood while multi-tasking? </li></ul><ul><li>Am I continually trying to increase frequency and change location but ultimately delivering the same message? </li></ul>Personal Utility Drives Adoption - Am I in continual contact with my audience? - Do I know what they’re telling others? Consumers Own Brands - Do my customers feel ownership? - How am I using social technology to enable customers to spread the word?
Gen Y in Seattle… Seattle has been labeled as the #1 “youth-magnet city,” gaining enviable cultural allure and a labor-market edge.* “ Seattle is a high-tech and lifestyle mecca.” - Richard Florida, Who’s Your City? *Wall Street Journal, The Next Youth Magnet Cities . Shellenbarger, Sue September 30, 2009 Of the nation's 110 million households, only 19 million are currently headed by people aged 25 to 34, (the prime group of apartment renters.) But from now through 2015 the number of young households is expected to rise sharply, climbing an average of 290,000 annually .** % of Puget Sound demographic, ages 20 – 34 will increase by 20%+ in 2010/2011. This age group is anticipated to increase by 80,000 people in the next 5 years.*** **Economy.com Chen, Celia, Director of Housing Economics ***Dupre + Scott September 2009
*ULI Fall Meeting, Denver, CO / Gadi Kaufmann, Robert Charles Lesser & Co. Gen Y = Generation Rent Between 2008 and 2020, the U.S. Census Bureau reports that approximately 57 million members of Gen Y will reach the age of 22—the beginning of prime rental age. Student Housing Single + Roomate Rental Rent as a Couple/1 st Home Young Family Own Mature Family Own Empty Nester Downsize Own Retiree Senior Housing 2006 Gen Y Gen Y Gen X Gen X Gen X, Baby Boom Baby Boom Eisen, Baby Boom 2010 Gen Y Gen Y Gen Y Gen X Gen X, Baby Boom Baby Boom Eisen, Baby Boome 2015 Gen Y Gen Y Gen Y Gen Y Gen X Gen X, Baby Boom Eisen, Baby Boom 2020 Gen Z Gen Y Gen Y Gen Y Gen Y, Gen X Gen X, Baby Boom Eisen, Baby Boom
...do not prefer a home in the suburbs like their baby boomer parents did. ...do not want to limit themselves to major metros. Instead, they are more likely to be drawn to urban infill locations. ...want to live in a culturally and ethnically diverse neighborhood. *ULI Fall Meeting, Denver, CO / Gadi Kaufmann, Robert Charles Lesser & Co. ...are more likely to be attracted toward a home designs that emphasize bright, open spaces, with plenty of windows and those that offer flexible use of rooms and space. ...want…no, EXPECT , wireless living. ...prefer homes that have incorporated green features. ...increasingly gravitate to more affordable second tier and third tier cities if they are well-provided with enough entertainment and recreational amenities.* So…what is Gen Y looking for in a home? We’re too cool for “cookie cutter” I hate “vanilla” ...may delay home ownership just as they are putting off other large commitments such as marriage and childbirth until an later age.
<ul><li>- Eliminating Phone Jacks </li></ul><ul><li>- Decreasing Security Deposits (SureDeposit – 17.5% Non-Refundable Premium) </li></ul><ul><li>Roommate—friendly Floor Plans </li></ul><ul><li>Billiards Room, Stage for Music Performances </li></ul><ul><li>Memberships to Area Clubs, Organizations, etc. </li></ul><ul><li>Providing a transit solution: Zipcar on-site, METRO pass. </li></ul><ul><li>Most promotions are online: Craigslist </li></ul>Some folks are responding by…
Deliver consistent, excellent service. Acknowledge the differences. Don’t talk down to them/at them. Talk WITH them/to them. Be honest. Build communities – online and in neighborhoods. Be where there already are. (Concerts, Sporting Events) Engage earlier. The medium has changed. Change yours. How you connect with them…