1. Generation Y: What Kinds of Real Estate Do They Really Want? M. Leanne Lachman Lachman Associates April 11, 2013

2. Who is Gen Y? 3.3% Silent Generation (84+) 9.7% Depression & War Babies (68-83) 24.6% Baby Boom (49-67) 17.2% Gen X (36-48) 25.0% Gen Y (18-35) 20.1% Gen Next (<18) Source: U.S. Census Bureau, 2010

3. Two Big Generations Gen YBoomers 2010 Size77.4 million76.2 million Birth Years1978-19951946-1964 Age Now18-3549-67 Hispanic21%10% Black15%12% Asian/Other10% 5% Live to Work16%28% Work to Live85%72% Expect Never to Retire10%25%

4. Gen Y Descriptors Techno-savvy Social Connected High Maintenance Outspoken Educated Multi-cultural “Emerging Adulthood” High Performance Entitled Civic-minded Tattooed Pampered Optimistic Underemployed Entertainment-oriented

5. “When I was your age, I was an adult.”

6. Pew Survey Results Optimism undiminished from 2004 91% expect to sustain preferred lifestyles Only 30% consider today’s job a career Historically high % enrolled in school 24% moved back with parents Source: Pew Research Center, December 6-19, 2011 Survey

7. ULI’s Gen Y Surveys Nationally representative samples: n=1241 responses – housing n=1251 responses – retail Focus on people over 18 Finished high school Working, attending college or vocational school, parenting 45% are 18 – 25 27% are 26 – 30 28% are 31 – 35 Confidence level of + 3% Distributed across U.S.

8. Current Gen Y Housing Source: ULI/Lachman Associates Survey, January 2013, n= 1251

9. Marital Status by Age Total Survey Single 63.5% Divorced/Widowed 2.0% Married/Partnered34.5% 100.0% n=1251 Source: ULI/Lachman Associates Survey, January 2013.

10. Gen Y’s Self Characterization I consider myself: n=1251 Source: ULI/Lachman Associates Survey, January 2013.

11. Gen Y Housing Tenure by Age - 2010 *Living with relatives or in student housing n=1182 Source: ULI/Lachman Associates Survey, Summer 2010 RentersOwnersOther* 18-24 yrs 38%15%47% 25-29 yrs 38%44%18% 30-32 yrs36%54%10% Total38%36%26%

12. Gen Yers Turning 22 Source: U.S. Census Bureau

13. Ava by Avalon Bay

14. Gen Y’s Pets Pet Owners71.5% Dog(s)53% Cat(s)35% No Pets28.5% n=1251 Source: ULI/Lachman Associates Survey, January 2013

15. Gen Y as Consumers 37% love to shop 48% enjoy shopping when it’s required Not accumulating possessions Research online; may buy in stores 61% view shopping as entertainment Sensory aspects important

16. Gen Y’s Online Shopping Electronics/Computer Equipment44% Women34% Men54% Gifts43% Personal Clothing41% Women47% Men36% Books39% CDs/DVDs33% Source: ULI/Lachman Associates Survey, January 2013

17. Gen Y’s Sharing Economy “Access to stuff we want without having to own it” Rented dresses (RentTheRunway.com) Zipcars Tools & electronics Chefs & errand runners Toys (BabyPlays.com) Modern art “Owning less offers more”

18. Gen Y Hotels Aloft Indigo Hyatt Place Gen 4 New York’s Standard & Ace Hotels Motel One Yotel

19. Gen Y as Office Users <100 sq ft/person No private offices Counters replace desks Creative interaction/fun spaces Work from home/car/Starbucks Green is preferable Incubator/temporary spaces in demand

20. Zynga Headquarters

21. Zynga Interiors

22. Gen Y as Office Users <100 sq ft/person No private offices Counters replace desks Creative interaction/fun spaces Work from home/car/Starbucks Green is preferable Incubator/temporary spaces in demand

23. Why We Call Them Gen Y Y should I leave home and find my own place? Y should I get a car when I can borrow yours? Y should I get a roommate? Y shouldn’t I have a dog? Y shouldn’t I treat myself well? Y should I stop traveling?

24. Generation Y: What Kinds of Real Estate Do They Really Want? M. Leanne Lachman Lachman Associates April 11, 2013