Short answer
When targeting Millennials and Gen Z for real estate investments, prioritize messaging around financial gains, value appreciation, and robust security measures over purely environmental or social sustainability claims, especially in volatile economic conditions.
- Field
- Innovation & Markets
- Source
- Sustainability (2023)
- Method
- Quantitative survey research utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM).
- Sample
- 400 participants
- Evidence
- Strong effect
Younger generations in the Philippine real estate market are primarily motivated by risk tolerance and perceived property value, with sustainability taking a backseat, especially during inflationary periods. This innovation & markets research insight is drawn from a 2023 study published in Sustainability. Using Quantitative survey research utilizing partial least squares structural equation modeling (pls-sem). with 400 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When targeting Millennials and Gen Z for real estate investments, prioritize messaging around financial gains, value appreciation, and robust security measures over purely environmental or social sustainability claims, especially in volatile economic conditions.
Millennial and Gen Z Real Estate Investment Driven by Risk Tolerance and Perceived Value, Not Sustainability
Younger generations in the Philippine real estate market are primarily motivated by risk tolerance and perceived property value, with sustainability taking a backseat, especially during inflationary periods.
Sustainability · 2023
Key Findings
- 01Risk tolerance significantly influences real estate investment intention.
- 02Perceived property value significantly influences real estate investment intention.
- 03Aversion from illegal practices significantly influences real estate investment intention.
- 04During inflation, these factors lead to a prioritization of profitability over sustainability.
Application
Design takeaway
When targeting Millennials and Gen Z for real estate investments, prioritize messaging around financial gains, value appreciation, and robust security measures over purely environmental or social sustainability claims, especially in volatile economic conditions.
How to apply
Develop investment pitches and marketing materials that clearly highlight potential ROI, property value appreciation forecasts, and safeguards against common market risks and illegal activities. Consider offering tiered investment options that cater to different risk appetites.
Project actions
- 01When researching target audiences, consider their financial priorities and risk appetites.
- 02Use surveys with Likert scales to measure attitudes towards risk, value, and sustainability.
- 03Analyze market trends and economic conditions to understand how they might influence consumer behavior.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Utilizes a robust statistical method (PLS-SEM) for model assessment.
- +Includes a diverse sample across different regions of the Philippines.
Limitations
The sample is limited to Filipino Millennials and Gen Z, so findings may not apply to older generations or other nationalities. The study was conducted during a specific economic period (inflation), which might skew results.
Reliability & validity
The use of PLS-SEM provides a robust framework for assessing the model's reliability and validity. The study's findings are supported by statistical significance, indicating a strong influence of the identified variables on investment intention.
Think critically
To what extent do cultural factors within the Philippines amplify or mitigate the observed prioritization of profitability over sustainability in real estate investment?
Design Principles
"Investment appeal is often driven by perceived financial benefit and security, with sustainability being a secondary consideration for younger demographics in certain market conditions."
Understanding the core drivers of investment intention for emerging consumer groups is crucial for market strategists and developers. This insight highlights a potential gap between market offerings and consumer priorities, suggesting that marketing and product development should focus on perceived value and risk mitigation rather than solely on sustainable features.
What This Means for Your Design
Young people in the Philippines looking to buy property are mostly thinking about how much money they can make and if the property will be worth more later, and if it's safe from scams. They don't worry as much about if it's good for the environment, especially when prices are going up.
How to use in your project
- 1.Reference this study when discussing the target market's investment drivers and how they might influence design choices for marketing materials or property features.
- 2.Use the findings to justify focusing on specific value propositions in your design proposal.
Add to My Project
Quick Cite
Paragraph starter
Research indicates that for Filipino Millennials and Gen Z, real estate investment intention is significantly influenced by risk tolerance, perceived property value, and aversion to illegal practices, particularly during inflationary periods where profitability is prioritized over sustainability. This suggests that design strategies for this demographic should emphasize financial security, potential returns, and robust anti-fraud measures.
Source
Sustainability
Antecedents of Real Estate Investment Intention among Filipino Millennials and Gen Z: An Extended Theory of Planned Behavior
journal · 2023
View sourceQuestions About This Research
- What does the research say about millennial and gen z real estate investment driven by risk tolerance and perceived value, not sustainability?
- When targeting Millennials and Gen Z for real estate investments, prioritize messaging around financial gains, value appreciation, and robust security measures over purely environmental or social sustainability claims, especially in volatile economic conditions. Evidence: Sustainability (2023).
- Why does "Millennial and Gen Z Real Estate Investment Driven by Risk Tolerance and Perceived Value, Not Sustainability" matter for design?
- Understanding the core drivers of investment intention for emerging consumer groups is crucial for market strategists and developers. This insight highlights a potential gap between market offerings and consumer priorities, suggesting that marketing and product development should focus on perceived value and risk mitigation rather than solely on sustainable features.
- How can designers apply this research?
- When targeting Millennials and Gen Z for real estate investments, prioritize messaging around financial gains, value appreciation, and robust security measures over purely environmental or social sustainability claims, especially in volatile economic conditions.
- What were the main findings?
- Risk tolerance significantly influences real estate investment intention.. Perceived property value significantly influences real estate investment intention.. Aversion from illegal practices significantly influences real estate investment intention.. During inflation, these factors lead to a prioritization of profitability over sustainability.
- What research method was used?
- Quantitative survey research utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM). with 400 participants.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2023 journal from Sustainability.
- What should I do differently in my next project?
- Develop investment pitches and marketing materials that clearly highlight potential ROI, property value appreciation forecasts, and safeguards against common market risks and illegal activities. Consider offering tiered investment options that cater to different risk appetites.
- What are the limitations?
- The study is specific to the Philippine context and may not be generalizable to other markets. The focus on inflation as a specific economic condition might influence findings.