12 Jul Key Word: Amenities
“What are the amenities” is a question that is prevailing in every sector of real estate. A concept that once existed primarily in the hospitality industry now permeates both residential and commercial trends, with different desired amenities based on the different generations. Between the three main generations in the workforce and housing market (Baby Boomers, Gen Xers, and Millennials), we see a variety of wants for these added perks.
Commercial real estate has seen a rise in amenity-oriented offices as businesses fight to attract or retain employees. Often employers need to boast about their onsite fitness center or proximity to public transit in order to compete in the modern talent war. As Millennials take over more of the workforce, certain traditional thought processes have almost disappeared. Employees are less likely to stay with employers for more than a few years and are more willing to take a job based on the amenities it provides over a possible pay increase.
What Generation Wants What Amenities?
The housing market also sees the same push for amenities to attract residents, especially in the multifamily sector. What are some of the major desires that developers need to consider? It depends on their target market. Baby Boomers and Gen Xers have some overlap, desiring security (like a gated community) and easy parking accommodations. Boomers also note that outside storage is highly preferred, but Gen Xers show strong interest in childcare oriented amenities. Concepts highly desired by all three groups are things like public Wi-Fi or smart home technology (Nests, Ring, Keyless Entry).
The Millennial generation quickly changes the amenity landscape. This is a generation that is highly educated but also comes with higher debt. Due to this debt, Millennials are less inclined to purchase and are now renting longer than previous generations. With their different lifestyle choices come almost radically different desires than Boomers and Gen Xers. After public Wi-Fi, the highest desired amenities are public use items like pools, fitness centers, and clubhouses. Millennials are also more interested in bike storage as ride sharing technology and public transit are on the rise.
The Big Picture for Amenities
What does this all add up to? Amenities are trend-oriented and to maximize ROI on expensive amenities developers need to target key desires their buyers will continue to want while still being able to embrace newer trends. Rest assured though, no matter what generation your property attempts to appeal to, they are looking to see what added perks are thrown in.