Growing interest in eco-friendly options among the younger generation, yet rising prices impacting buying decisions
In a significant shift, Generation Z's focus on green and social sustainability in real estate and energy efficiency has intensified in 2023, according to the findings of the "Agos Insights 2023" Observatory. This trend is marked by a preference for customizable, under-construction properties that allow for the integration of sustainable features, a broader emphasis on community-centric living with wellness amenities, and a strategic, future-focused mindset regarding space and quality [1][3][4].
Key trends emerging from this shift include:
- Preference for under-construction properties: In 2025, a staggering 73% of Generation Z buyers are expected to opt for under-construction properties, enabling them to customize homes potentially integrating green technologies and energy-efficient designs, aligning with long-term sustainable investment thinking [1].
- Smart, connected, flexible living spaces: The pandemic has sparked a growing interest in smart, connected, flexible living spaces that accommodate hybrid work. This includes wellness amenities, reflecting social sustainability concerns and improved lifestyle quality [3].
- Quality and affordability: Gen Z values quality and affordability when evaluating products and brands, including sustainable homes and community features such as fitness centers and green spaces, indicative of a socially conscious consumer behavior [4].
- Integration of ESG metrics and energy efficiency scores: The use of digital platforms and fintech tools integrated with ESG (Environmental, Social, Governance) metrics and energy efficiency scores to inform sustainable homebuying decisions has gained momentum, particularly among millennials but spilling over into Gen Z preferences as well [2].
- Adoption of energy-efficient home features: The trend towards energy-efficient home features like solar panels and smart thermostats, especially in suburban developments, is driven by Gen Z's environmental awareness and cost-savings incentives [2][3].
However, the report also suggests a decrease in overall interest in green and social sustainability due to economic and political factors. Purchasing choices in the direction of green and social sustainability are more limited in 2023 than they were in the previous year [1][2].
This shift towards green and social sustainability among Generation Z reflects a growing commitment to long-term environmental and social impacts in real estate and energy use, moving from aspirational rhetoric to tangible investment and lifestyle decisions [1][2][3][4]. The evolution from general interest to a more concrete, actionable integration is a testament to Gen Z's dedication to making a difference in the world.
[1]: Agos Insights 2023 Observatory Report, 2023 [2]: Sustainability Trends in Real Estate: A Gen Z Perspective, 2023 [3]: The Rise of Green and Social Sustainability in Real Estate: A Focus on Gen Z, 2023 [4]: Gen Z's Sustainable Homebuying Preferences: A Deep Dive, 2023
- Recognizing the financial benefits and lifestyle improvements, Generation Z homebuyers have shown a preference for homes with sustainable living features, such as solar panels and smart thermostats, reflecting their commitment to sustainable-living and energy-efficiency [2].
- In the realm of home-and-garden design, a growing focus on community-centric living and wellness amenities has led Generation Z to prioritize properties with under-construction options, allowing them to integrate customized, green technologies, and fostering a sustainable policy for a better future [1].
