Generation Z will account for 32% of the 7.7bn global population in 2019, nudging ahead of millennials, who will account for a 31.5%, based on Bloomberg analysis of United Nations data.
With this new Generation, born in 2001 or later, (although some class them as those born from 1997 onwards or even 2004 onwards), starting to turn 18 next year, many will begin to enter university, be eligible to vote, drink alcohol and also rent property. With almost 2.5bn members, landlords should start to learn more about this Generation of young people and how they might change the real estate market in their country.
Gen Z have never known a non-digital world and have grown up amid events such as the “war on terror” and the Global Recession. As such, the demographic handover is good news for delivery services, gadget makers and the so-called gig economy. Meanwhile, it presents new challenges to educators, event planners, luxury brands and even golfers - a game where the average age of a player in the US now exceeds 50, (would the demise of that sport free up land for future housebuilding?)
However, the demographics of this Generation differ depending on location. Millennials will continue to represent the bigger proportion in the world’s four largest economies: US, China, Japan and Germany. The combined population just shy of 2bn in those four countries will have a ratio of 100 millennials for every 73 in Gen Z next year.