What Millennials and Gen Z Want in a Home
May 1, 2025
There is a higher influx of millennials and Gen Z. Understanding the preference of this generation of individuals, it is safe to say that there is a shift in what an ideal home would look like. Considering this as more than just a generational shift, there is also a lifestyle transformation driven by technology, sustainability, affordability, and flexible living.
Technology is not a luxury for young buyers. It is the standard they expect with smart home integration. It is exactly what they look for while looking to rent or buy a property. This fact is what has prioritised features like remote-controlled lighting, keyless entry, and in-built charging stations. Also, with the rise of digital jobs and remote workers, there would be the need for fast and reliable internet.
Still on the topic of working from home, millennials and Gen Z are sometimes particular about flexible living spaces. They want multipurpose homes that can afford them comfortable living and also a conducive environment for them to work. Some of these homes have in-built desks, dedicated Speaking of work-from-home, flexible living spaces are increasingly sought after. Many young professionals want spaces that can shift between productivity and relaxation with ease.
There is also the need to be environmentally conscious, as this plays a huge role in attracting the younger generation that has grown to be more environmentally conscious. This has amounted to ensuring that you add more eco-friendly features such as solar panels, energy-efficient appliances, and even sustainable building materials. These generations are often willing to secure homes that align with their environmental values and save on utilities in the long run.
In the midst of all of these, the home in question has to be affordable, as this is a major consideration. Unlike past generations that are on the lookout for large homes in suburbs, the younger generation is more particular about securing smaller and more affordable properties. These smaller properties are easy to maintain and found in central areas closer to urban amenities. Compact living is often a deliberate choice for lifestyle reasons, not just financial ones.
These younger generations are particular about the location of the property. They strongly look for urban access and walkability. They would prefer homes that are close to restaurants, public transport systems, gyms, and even social hubs. A neighbourhood’s walkability score can influence buying decisions as much as the home itself.
Finally, many Millennials and Gen Z buyers are open to alternative paths to homeownership. Co-living arrangements, rent-to-own models, and fractional ownership are gaining traction, especially in expensive markets. Flexibility is key for generations that value experiences and mobility as much as—or more than—property ownership.
In essence, Millennials and Gen Z are not just looking for a place to live—they want homes that support their values, lifestyle, and aspirations. Developers, landlords, and real estate professionals who understand these needs will be better positioned to meet the demands of the future housing market.