Sustainability Redefines the Housing Market: Gen Z Drives Demand for Responsible, Future-Proof Homes

Strategic Insights -

Rising environmental awareness is transforming buyer expectations in the housing market, prompting developers to adopt authentic, forward-looking sustainability practices. Gen Z, emerging as influential homebuyers, is driving the demand for homes that integrate sustainable living concepts, such as energy-saving systems, green space, and water conservation. These considerations are especially pronounced among Gen Z, who are placing a high value on housing aligned with environmental, social, and governance (ESG) principles.

Key Takeaways:

  • 99% of Gen Z respondents in SCB EIC's 2024 housing survey said they are interested in ESG-oriented residential projects, compared to 90-94% for other age groups.
  • 68% of Gen Z buyers are willing to pay more for ESG-aligned homes, compared to 61% of baby boomers, 58% of Gen Y, and 55% of Gen X.
  • Over 90% of consumers value building materials that save energy, cool indoor spaces, and support the health of both residents and pets.
  • 76% of consumers are interested in eco-friendly materials, such as those made from recycled content or low-emission processes, and are willing to pay up to 5% more for them.
  • 82% of Gen Z and 63% of millennials invested in ESG-focused funds or assets in a 2022 survey by asset management firm Amundi and The Business Times.
  • Gen Z is the only age group to express interest in all five features of net-zero carbon homes, including solar rooftops, eco-friendly materials, electric vehicle chargers, flood-resilient layouts, and food waste composting systems.

Statistics:

  • 99% of Gen Z respondents are interested in ESG-oriented residential projects.
  • 68% of Gen Z buyers are willing to pay more for ESG-aligned homes.
  • 91% of consumers value building materials that save energy and cool indoor spaces.
  • 76% of consumers are interested in eco-friendly materials.
  • 82% of Gen Z invested in ESG-focused funds or assets.

Sources:

  • SCB EIC's 2024 housing survey
  • Amundi and The Business Times' 2022 survey on ESG engagement
  • Terra Media and Consulting's November 2024 survey on net-zero carbon homes in Thailand