Gen Z are delaying homeownership, choosing flexibility over permanence, favouring resale over mass production and prioritising access over accumulation.
In our latest Frontiers piece, our Regional Director for EME & North America Alex Baum explore how this generational shift may reshape placemaking, development and the future of cities.
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Urban development often assumes that demand is stable and predictable. Yet cities have repeatedly been reshaped by generational change. Baby boomers suburbanised. Millennials revalorised the inner city, prioritising experience, density and flexibility. Today, another shift is underway.
It is visible first in consumer behaviour. Across global cities, resale platforms have moved from niche to mainstream. Second-hand fashion has grown rapidly over the past decade, outpacing much of traditional apparel retail. Luxury brands now operate certified pre-owned channels. Vintage is no longer countercultural.
The common explanation is environmental consciousness. But the economics are equally important. Gen Z has entered adulthood amid high housing costs, persistent inflation and rising student debt. In many metropolitan areas, rent consumes a historically high share of income. Purchasing new goods at full price is not always practical. Resale offers affordability, but also something less tangible: durability and distinction in an economy that often feels disposable.
This preference signals a broader recalibration of value.
For the past decade, development has been shaped by a millennial logic of curated experience. Boutique hotels replaced corporate chains. Food halls revived declining retail corridors. Coworking redefined office interiors. Masterplanned precincts were designed to feel “authentic,” often through carefully assembled heritage references and independent operators.
That model was effective. It revived urban cores and attracted capital back to city centres. But it relied heavily on controlled curation. The aesthetic of authenticity became standardised.
Gen Z’s behaviour suggests a different emphasis. The appeal of resale lies not only in sustainability, but in authorship. Vintage items carry history. They allow for personal reinterpretation. They resist algorithmic sameness. Translated to urban form, this implies demand for places that feel layered rather than polished, adaptable rather than fixed.
There are early urban parallels. Adaptive reuse projects that retain material patina often command stronger cultural loyalty than pristine new builds. Flexible retail leases have enabled pop-ups, resale markets and independent operators to test concepts without long-term risk. In some cities, community repair initiatives and circular economy hubs are gaining traction, not as fringe movements but as mainstream amenities.
The implication is not that cities should stop building. Housing shortages and climate adaptation require substantial new infrastructure. But generational signals suggest that newness alone may no longer carry a premium. Character, flexibility and circularity may become stronger markers of long-term value.
Developers and city leaders have navigated generational rewrites before. Millennials altered the economics of hospitality, retail and workplace design. That shift restructured investment patterns and urban density. If Gen Z embeds reuse, affordability and expressive individuality into everyday practice, capital will follow.
Micro signals often precede macro transformation. A surge in resale markets may appear confined to retail. It may instead be an early indicator of a broader urban shift – one in which cities succeed not by perfecting curated environments, but by allowing them to evolve.
Talk to Alex Baum about The Next Generational Shift in Cities