Mark Stapp, executive director of the Master of Real Estate Development program at the W. P. Carey School of Business at Arizona State University, talks to GlobeSt.com
The recession, coupled with a host of other factors, has created a demographic with shifting priorities—namely, the Millennials, Mark Stapp, executive director of the Master of Real Estate Development program at the W. P. Carey School of Business at Arizona State University, tells GlobeSt.com exclusively in this NAIOP Development ’14 preview. Stapp will be speaking on a demographics-session panel titled “The New World: The Influence of Social Trends, Workforce Issues and Population Growth on Development.”
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Excerpt from the article:
GlobeSt.com: How are the composition and structure of where and how people live and work shifting?
Stapp: Although there are changes, I wouldn’t say there are necessarily wholesale changes. Growth and development patterns will remain pretty much the same as we know them—there’s not a wholesale movement to cities, and suburban growth is not going to stop happening. But there is growth in cities as the Millennial population emerges into the consumer segment of their life.
That is occurring at the same time that technology has created opportunities for disruptive business models, and that is occurring at the same time that we had this incredible disruption to the status quo because of the economic crisis or recession. So, you’ve got this large, 86-million-person segment of the population that has not been a part of the consumer economy until several years ago when the recession started, but they became adults at the same time that some profound things occurred that affected their psyche. They lived during some of the longest wars in history, and they were either participants or had relatives who participated in those wars. At the same time, their families were impacted by the economic crisis by losing jobs, having foreclosures on their homes or forced home sales, coupled with incredible amounts of student debt. This is the first population group to emerge into adulthood in the consumer segment of the population carrying incredible amounts of debt the day they start. All of these things combine to change your value systems, beliefs and the things you want in life.
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