This document discusses strategies for relating to Generation Y (Gen Y). It notes that Gen Y, born between 1980-2000, makes up 28% of the population and influences $150 billion in annual spending. The document outlines 5 rules for engaging Gen Y, including that authenticity trumps celebrity, niche interests are important, bite-sized communication is preferred, personal utility drives adoption, and consumers feel ownership of brands. It also discusses Gen Y housing preferences, such as desiring urban locations with amenities and public transit access. The document advises delivering excellent service, acknowledging generational differences, being honest and engaging Gen Y where they already interact online and in communities.

3. 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

6. Authenticity trumps celebrity Niche is the new norm Bite-size communications dominate Personal utility drives adoption Consumers own brands 5 Rules of Engagement…

7. 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

8. 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…

9. 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?

13. 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

14. *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

15. ...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.

17. 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…