Samma Keetsin

Board Member, Sena Development Public Company Limited

Social scientists categorize people today into different generations based on age or birth year, which may vary slightly in detail, especially regarding the cut-off years. For the convenience of this article, the author will categorize people starting from the oldest to the youngest as follows:

Traditionalists

Divided into two sub-generations: The Greatest Generation and Silent Generation.

The first sub-generation, The Greatest Generation, includes those born in 1927 or earlier. Currently, very few remain alive, as they were born during the reign of King Rama VI to the early reign of King Rama VII, or during World War I until about nine years after its end. They are now at least 93 years old. This generation lived in homes that were simply built or constructed collectively within their communities, with no tall buildings or housing developments created by developers.

The next sub-generation, the Silent Generation, consists of those born between 1928 and 1945, the year World War II ended. Currently, this generation is aged between 75 and 92 years. They are known for their conservative values, communicating through word of mouth or written letters, and later using landline telephones. They are savers, with education levels not particularly high, living in homes that were either self-built or constructed by the government in larger cities. They began to see the early high-rise buildings, as the Empire State Building in New York started construction in 1930 and was completed in under 14 months, while Japan opened its first subway line, the Ginza Line, in Tokyo in 1927.

Baby Boomers

This generation includes those born between 1946 and 1964, the year World War II ended until Tokyo hosted the first Summer Olympics. They are currently aged between 56 and 74 years and most have already retired.

This generation was born during a time of global peace following major wars, leading to a disciplined, hardworking, and industrious mindset. They created the large housing markets we see today, as millions of soldiers returning home began to start families and had a significant demand for housing. The previous method of building homes individually or relying on government-built housing was insufficient. Additionally, many governments began constructing extensive infrastructure and transportation systems, such as the interstate highway system in the U.S. under President Dwight D. Eisenhower, and large-scale reconstruction in Japan and Europe after the war, leading to the emergence of new communities and a high demand for housing in major cities. This resulted in the rise of housing developments, particularly in the U.S., while in Thailand, a few projects like Economic Village, Phibunwet Village, Friendship Village, and Prachanivet Village emerged and developed further over time. As this generation aged into middle age, they began accumulating more debt, but it was generally good debt, as most borrowed from banks to purchase homes with long-term repayment plans.

Gen X

This generation includes those born between 1965 and 1980. Currently, they are aged between 40 and 55 years. Some sources may define this generation as those born between 1960 and 1976, but this distinction is not crucial. The key difference between this generation and the subsequent ones lies in their use of communication technology and cultural or ideological shifts.

This generation seeks independence from past norms, learning not only from classrooms but also through external exploration. They desire stability in life, having witnessed their parents work hard throughout their lives. This generation began changing jobs more frequently compared to previous generations, who often held the same job for life. Gen X individuals are more adaptable to different living arrangements, and those born towards the end of this generation grew up alongside the early development of personal computers.

In urban society, Gen X has ascended to managerial positions, typically forming smaller families with fewer children than previous generations. Most have already purchased their first home and may currently be looking for a second home for themselves or their children.

Gen Y

This generation is relatively new but not the newest (as there are younger generations). Gen Y includes those born between 1981 and around 2000. Currently, they are aged between 20 and 39 years, often referred to as Millennials in the U.S. This generation is stepping up to take the baton from the previous one. They frequently change jobs or pursue freelance work, often juggling multiple roles simultaneously. They grew up with advancing communication technology and are impatient when it comes to waiting for information, preferring immediate access to answers. They learn in a networked manner from peers rather than through traditional top-down methods.

Gen Y tends to live independently, start families later, and have fewer children, typically one or two. Consequently, their housing preferences do not require large spaces. This generation dislikes the burden of maintaining extensive properties, such as lawns, preferring to hire others for maintenance or opting for convenience like takeout instead of cooking. Therefore, they are likely to seek condominiums or townhouses due to lower costs and maintenance responsibilities. Research indicates that while Gen Y desires single-family homes, surveys often reveal a common preference for single-family homes across all generations, which the author refers to as an “ideal demand.”

Another factor influencing this generation's choice of condominiums or townhouses is their budget, as housing prices continue to rise annually. Their ability to purchase single-family homes has diminished compared to previous generations (except for affluent Gen Y individuals).

Studies in the U.S. show that about half of this generation still rents rather than buys due to significant student loan debts, and many recent graduates continue to live with their parents, which is unusual compared to previous American generations.

In Thailand, similar issues arise with educational loan debts, with more than half of borrowers unable to repay their loans, adversely affecting their ability to purchase homes. However, since this generation may come from families with varying economic backgrounds, and includes both older Gen Y (aged 30-39) and younger Gen Y (aged 20-29), a more nuanced analysis of their housing purchasing behavior and potential is necessary. What remains consistent is that this generation has access to abundant information about housing products, allowing them to easily compare available properties for sale or rent through mobile technology and various applications. Therefore, the housing market must respond sincerely to this generation's needs, providing more than just information, as they value peer opinions over family advice when making decisions. Thus, creating a positive impression on one customer can lead to word-of-mouth referrals or social media mentions.

Gen Z or iGen

This group consists of those born after Gen Y. They are currently students and are more attached to new technologies than any previous generation, relying heavily on portable devices. Life is challenging without the internet, as they have grown up with it. They have matured alongside rapidly advancing communication technologies and continuously follow trends like Gen Y. Although they tend to have a higher degree of privacy than any previous generation, they sometimes reveal their identities in subtle ways, such as using pseudonyms for profiles.

This generation currently has little influence on the housing market. However, those from affluent families may live in condominiums provided by their parents for easier access to educational institutions. In about 5-10 years, this generation will begin to play a more significant role in the housing market.

In summary, the age group most likely to make housing purchasing decisions is approximately 26-35 years old, with a heavier emphasis on the 30-35 age range (which corresponds to Gen Y), as this is the age where individuals have sufficient experience and growing income levels that enable them to purchase housing. The next significant age group is approximately 36-45 years old (which overlaps with both Gen X and Gen Y).

Thus, Gen Y will increasingly influence the housing market moving forward, before the next generation takes over. However, within each generation, while there are many shared characteristics, the wide age ranges and differing economic and social statuses (such as Gen Y in urban areas versus rural areas, or affluent versus less affluent families) necessitate a more tailored approach to studying consumer behavior in this generation or any other.