By Brian Rodgers
Understanding the preferences and behaviors of different generations is crucial for real estate developers, agents and policymakers in Southwest Florida to anticipate and respond to changing housing market dynamics. The market is shaped by the ebb and flow of generational shifts, with each wave leaving its distinct mark on the region’s real estate landscape.
At the forefront of this shift are the baby boomers and millennials. Both generations have influences that reverberate through every corner of Southwest Florida.
Although once the largest generation, baby boomers have been surpassed by millennials in terms of population. Our region has historically skewed toward an older demographic, but over the past 30 years or so, the median age has dropped consistently every year.
As older baby boomers are approaching their twilight years, younger adults – those in generation X, millennials and generation Z – are visiting their older relatives or vacationing in Southwest Florida, and they’re falling in love with the area. Eventually, they decide to move here and raise their families in paradise.
This has led to a significant demographic shift in the housing market, with millennials now also at the forefront as the largest group of home buyers, particularly here in Southwest Florida. After many years of focusing on a career, renting an apartment or small home close to their office, they’re now at the age where they’re thinking about settling down. Marriage, children and owning a house in the suburbs becomes their focus.
This group wants their children to live the lives they enjoyed as children a couple decades ago – playing in the yard, safely riding bikes down the street and having friends in the neighborhood. This is the cycle that has been going on practically since the dawn of time.
With this generational shift comes a shift in community styles. More developers are shifting from the country club-style communities in lieu of resort-style communities. Many families are not interested in golf courses and tennis courts, but rather pools with slides and splash pads, indoor gyms, soccer fields and the like.
Also coming into play is the cost. Millennials are trying to be more frugal with their dollars, so they’re not going after the opulence or extra cost of some luxury features such as crown molding, marble flooring, high-end finishes, luxury vanities and other features of million-dollar homes. They’re content with the practicality of a community pool, a clubhouse, a sports center… and a smaller mortgage. “Hyperamenitized” communities such as Verdana Village, Brightwater, Timber Creek or one of the many communities at Babcock Ranch are all the rage among younger buyers.
The generational shifts are reshaping the Southwest Florida housing market in profound ways. Developers, real estate agents and policymakers must understand and adapt to these changing dynamics to effectively meet the needs of a diverse range of homebuyers. Strategies, such as amenity-strong communities, flexible financing options and community engagement initiatives, can help ensure that the housing market remains vibrant and inclusive for generations to come.
By recognizing and responding to the evolving needs and desires of baby boomers, millennials and other generations, stakeholders can foster a thriving real estate market that meets the diverse needs of residents across all age groups.
About the Author
Brian Rodgers is owner and qualifying broker for Worthington Realty, a boutique real estate company specializing in residential sales, rentals and development across Southwest Florida. For more information, call 239-437-3334, email info@worthingtonrealty.com or visit WorthingtonRealty.com.
