San Diego has a healthy population of young professionals, and they have an impact on every asset class.
Millennials make up a huge portion of the population in markets throughout the nation. In San Diego, millennials alone represent a quarter of the population, and in combination with gen-Z, young people account for half the population. These demographic groups—along with their wants and needs—have a major impact on real estate.
“Millennials are the largest generation group in San Diego, representing 798,000 or 24% of the total population. Based on this calculation, San Diego ranks as the seventh in the US as having the highest concentration of millennials compared to the total population living in the metro area,” Jolanta Campion, director of research for San Diego at Cushman & Wakefield, tells GlobeSt.com. “1.9 million or 56% of the approximately 3.4 million residents in San Diego are 39 years old or younger, which means millennials, also knows as gen-Y, are influencing trends along with gen-Z, who represent 1.06 million or 32% of San Diego residents.”
These two demographic groups aren’t simply using real estate, they are looking for an experience through real estate, including where they live, work and play. “These younger generations typically offer a vibrant energy and drive, an existing and future talented labor pool and therefore potential job growth and economic expansion, new ideas and concepts that are helping shape and advance the region,” says Campion. “Furthermore, as consumers their purchasing power also helps to expand our local economy, which for Gen Z also includes influencing their parents’ spending behaviors—as well as the demand for real estate supporting experience based entertainment.”
In the office market, companies are meeting the demand for a seamless experience to attract and retain talent, or rather companies have been forced to comply. “Attractive, amenity-rich real estate is one of the ways companies are able to attract talent in this highly competitive market,” says Campion. “To meet the expectations of today’s Southern California workforce, more and more projects are providing on site, or at least proximate if not walkable amenities, such as health/fitness, outdoor space, dining, shopping, and other services.”