Generation X. Do you know, my friends, which generation you belong to? No, :-) Yes :-). Any other options? Well, I won't keep you in suspense—Generation X is typically defined as people born between 1965 and 1980. That means they/us are now somewhere between 44 and 59 years old. Now, let’s discuss, considering my business is connected with real estate, the general views about the future of Generation X :-).
As members of Generation X approach retirement, they start thinking about their retirement living options. The older members of Generation X are a few years away from finishing their careers, but some are already looking for housing that would suit their "golden age" living, they are beginning to think about where they will live into their 70s, 80s, and even 90s. The desire to age gracefully (well, how else!) in their own homes, rather than moving in with relatives or into a nursing home, is characteristic of many generations. According to 2021 statistics, about 88 percent of elderly people, defined as those aged 65 and older, lived in their own homes, which is great and personally gives me healthy optimism. "The general demand is directed towards maintaining quality of life as we age," said Joanna Frank, CEO and President of the Center for Active Design, a non-profit organization that developed the Fitwel standard, used by architects, designers, and builders to promote health at home and in the workplace. And what about the builders? According to their views, many members of Generation X still have children at home, but soon they will become, and again this fortunate translation "empty nestles" :-), empty nests. This is the turning point... Those who can afford it are willing to pay for extra space in case they need to take care of other family members, such as grandchildren, adult children, and aging parents, and in many cases, they are already doing so. In new construction projects, they seek access to health and well-being amenities such as walking trails and tennis courts, and choose home features such as shower stalls instead of bathtubs, for example, and want to pack their new home with a bunch of modern (as of today) gadgets that will help them as they age. Well, in my view, this is natural. Money often comes with age... :-) Home buyers from Generation X have an average income of about CA$150,000, and they continue to actively accumulate. They also have a significant amount of home equity. Homeownership among Generation X members was 72 percent in 2023, significantly higher than millennials (the next generation guys :-), whose rate was 55 percent.
Do you know what motives/factors are dominant?
- buying a "lifetime" home
- the house size increases: "This is my house for 30 years, not just 5," that's their motive
Many members of Generation X find themselves in the sandwich generation, simultaneously supporting children (some of whom are adults themselves) and parents. To manage care for them, some home buyers choose three- and four-bedroom homes to accommodate their multigenerational households. About 20 percent of Generation X members who bought a house in 2023 purchased a multigenerational home. Generation X members, it seems, care for their parents and welcome back young adults into their homes. Usually, it sounds like this: "Now that the kids have grown up and moved out, we have three spare bedrooms, which means we can accommodate family if needed. "We want our children and grandchildren to return and have a place to sleep when they come," and they also believe they have space for their parents, who are in their 70s/80s/90s, and may have to live with them someday.
And back to the builders. What do people of Generation X want from them?
Thinking about the time when their bodies may not work as well, representatives of Generation X demand features such as high electrical outlets and high-seat toilets. Some ask for individual pull-out drawers, because they do not want to bend down to open a cabinet. Part of the customization also involves incorporating technologies that help people as they age, such as sensors in the floors that can detect if someone has fallen, and even send signals for help. Builders understand that this generation keeps track of their health and is much more technologically advanced. That's the kind of generation approaching the "pension" stage now :-). And what do you think, friends?