Forget the white picket fence and two-car garage. Instead of chasing traditional wants like square footage in the suburbs, a growing share of Millennial and Gen Z homebuyers are looking for walkability, nightlife, and access to cultural amenities. More importantly, they are willing to pay more to get it.
The work-from-home factor
Remote and hybrid work has changed how younger buyers think about where they live.
"For a lot of buyers, their home has also become their office," said Mike Roberts, Co-Founder and President of City Creek Mortgage. "Because they end up spending over 40 hours a week staring at their screens, they have a pretty desperate need for a 'third place' that isn't home."
Roberts says these buyers are often willing to pay more for walkability because they need to shut their laptop and step out the door into a different environment. A short walk to coffee, a patio, or a park can be the reset that makes the day feel lighter.
Paying for public space, not private space
Buyer priorities have shifted since the last decade, and what’s inside the home itself is starting to matter less than what is right outside the front door.
"A lot of these buyers are looking for public access over private luxury," he said. "A decade ago, a borrower might have stretched their budget for a bigger garage. But today, that same borrower is happy with a 900-square-foot condo if it affords them access to a walkable entertainment district."
There’s less of a need for a massive kitchen if one is eating out multiple nights a week.
"They're outsourcing their amenities to their neighborhood," Roberts said. "And they're okay paying a premium to do so."
That premium can come with tradeoffs. While walkable neighborhoods often cost more upfront, buyers may save elsewhere: by driving less, avoiding a second car, cutting commuting costs, or reclaiming time typically spent in traffic.
Townhomes are the new starter home
A lot of this demand is landing in the middle. Buyers want walkable, active neighborhoods, but in many fast growing markets, single family homes in these desirable areas are out of reach for first time budgets.
"Townhomes have become the starter home of this generation," Roberts said. "And what's interesting is that we're seeing developers build communities with fewer parking spots and smaller private spaces."
Developers are building around that reality. Instead of leading with bigger lots and bigger garages, more projects are being planned around convenience and connection. Homes are showing up closer to existing main streets and commercial corridors, with everyday stops nearby and more of an infill mindset that fits into what is already there rather than pushing farther out. Smaller footprints, shared amenities, and proximity to retail are becoming intentional design choices rather than compromises.
While much of this trend is being driven by millennials, Gen Z buyers are beginning to follow a similar path as they move from renting toward ownership. Many are earlier in their housing journey, but they are showing the same preference for walkable neighborhoods and lifestyle-driven locations, even if that means starting smaller.
The hidden risk buyers overlook
For all the appeal of living above a coffee shop or next to a trendy restaurant, Roberts warns buyers to think about what could come next.
"The one thing I always tell my clients to look for, which is something they almost never think about, is future commercial zoning of the surrounding area," he said.
A quiet block today might not stay that way.
"It's pretty easy to fall in love with a condo because it's tucked away above a quiet little bookstore," Roberts said. "But if that district is zoned for late-night entertainment, that quiet little bookstore could very well become a loud bar next year."
His advice is to look beyond what's currently built and consider what could be built there a year from now.
What buyers should consider
Buyers drawn to entertainment district living should go in with their eyes open.
Walkable neighborhoods usually cost more, so it helps to be clear on what you are getting in return. Choosing a condo or a townhouse usually means an HOA and all the fees that come with it. But it also might mean you can skip a second car, or just drive a lot less, and trade private space for proximity to restaurants, parks, and culture.
The bottom line
Younger buyers are increasingly treating location as the amenity. For many, that means paying more for neighborhoods where life happens right outside the front door.
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