With its oldest members turning 29 this year, Generation Z makes up a growing share of the workforce. This means their work, lifestyle and housing preferences are increasingly relevant to employers, developers and policymakers.
Generation Z places a high value on wellness and community, looks to the workplace for social connection and early-career development and faces greater housing affordability pressures than older generations. These are all closely linked: housing costs influence where younger people live, which in turn shapes how they commute and what they want from workplaces and local amenities. These findings come from a Savills World Research survey of 645 people worldwide, which assessed respondents’ housing, workplace and lifestyle preferences.

Lifestyle on a budget

Restaurants are the highest-rated local amenity across every age group, but beyond that, preferences diverge. Generation Z rates gyms, wellness centres and bars more highly than any other generation, while cinemas, theatres, museums and galleries appeal more to older generations. Within the fitness category, Generation Z rated Pilates and yoga studios and sports courts such as padel and tennis more highly than other generations do.

Importance of local amenities by generation
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Gen Z wellness preferences compared to all other generations

Source: Savills Research

Despite placing a high importance on lifestyle, Generation Z respondents are the most likely to report that cost limits their ability to socialise outside of their homes. This strengthens the case for affordable places to meet, such as coffee shops, parks and other ‘third spaces’ outside home or work.

Does the cost of going out prevent you from doing so as often as you like?

Source: Savills Research

Longer commutes, but a continuing need for connection

Work-life balance is a core priority for younger generations, including Younger Millennials and Generation Z, yet the office remains important to Generation Z as a place for learning, development and social connection. Generation Z respondents report the longest commutes, with 46% travelling for more than 40 minutes each way. However, Elder Millennials are the least satisfied with the cost and quality of their journeys: 44% are ‘not satisfied’ or ‘very unsatisfied’ with their commute. Despite their longer travel times, Generation Z is the most likely to be ‘very satisfied’ – evidence that they value the opportunity for interaction the office brings.

One way commute length by generation

Source: Savills Research

Satisfaction with cost and quality of city travel by generation

Source: Savills Research

The office as a place for connection and development

What respondents want from their ideal workspace also varies by generation. High-quality Wi-Fi is the top priority across all age groups, while social events and public transport connections are particularly important to younger respondents. These preferences suggest that younger employees value offices that are both well connected and designed to facilitate interaction. Interestingly, access to meeting rooms matters less to Generation Z than to any other generation.

Top five office amenities, Generation Z vs other generations

Source: Savills Research

For those at the beginning of their careers, collaboration, learning and social connection are particularly important. The office can make each more accessible through regular contact with colleagues and opportunities for in-person development. Generation Z prioritise social connection in the office more highly than any other generation, adding additional pull to the office.

HIGHBROOK INFOGRAPHIC
Source: Savills Research

Generation Z deviates from the broader tendency for younger respondents to prefer fewer days in the office. Respondents across all generations currently report attending the office for an average of approximately four days a week but would prefer fewer. Generation Z would prefer 3.4 days, slightly more than Millennials (3.2 days for Younger Millennials and 3.3 days for Elder Millennials) and close to Generation X (3.5) and Baby Boomers (3.5).

Current vs. preferred office days per week by generation

Source: Savills Research

Regional variations are also evident. Respondents in the Americas report fewer average days in the office, in line with the region’s more established hybrid-working patterns. Across every region, however, respondents would prefer to spend fewer days in the office than they currently do.

Current vs. preferred office days per week by region

Source: Savills Research

Elder Millennials are most likely to work from a home office, while Millennials and Generation X are the heaviest users of flexible office providers. At the other end of the spectrum, Baby Boomers are the most likely to work in traditional cellular offices – enclosed private rooms rather than open-plan spaces.

What type of office are you based in?

Source: Savills Research

It’s all about balance

Although Generation Z wants to spend most of the week in the office, the cohort still places significant value on work-life balance. All Generation Z respondents rate work-life balance between ‘moderately important’ and ‘extremely important’.

Importance of work-life balance by generation

Source: Savills Research

Importance of work-life balance by region

Source: Savills Research

Home ownership aspirations meet affordability pressures

Housing circumstances may partly explain why younger people are drawn to the office. Most Generation Z respondents either rent (45%) or live with family or friends (24%). For some, the office may offer a change of setting as well as access to the social connection and professional development that this cohort values.

Current housing tenure by generation

Source: Savills Research

Generation Z shows no distinctive preference for long-term renting. As with older generations, most respondents aspire to own a home, but housing affordability constraints and other barriers are holding many back: 38% say their progress towards home ownership is taking longer than they expected, the highest proportion of any generation.

Progress towards home-ownership vs. expectations by generation

Source: Savills Research

Generation Z allocates a larger share of its income to housing than any other generation surveyed. More than a third of respondents in this cohort (34%) spend more than 40% of their post-tax income on housing costs, while 47% spend more than the commonly used affordability threshold of 30%.

HIGHBROOK INFOGRAPHIC
Source: Savills Research

Affordability pressures appear more acute among respondents in the Americas and EMEA than in APAC. In the Americas, 46% of respondents spend more than 30% of their post-tax income on housing costs, compared with 42% in EMEA and 25% in APAC.

Proportion of income spent on housing costs by region

Source: Savills Research

Implications for housing, workplaces and connected places

Overall, social connection shapes Generation Z’s preferences across housing, work and local amenities, with respondents from this cohort valuing restaurants, gyms and community. Meanwhile, many spend a high proportion of their income on housing and report comparatively long commutes. These findings suggest potential demand for more affordable, community-focused housing in well-connected locations, including areas beyond major urban centres. Convenient public transport and accessible social amenities would be essential if lower housing costs are to support a viable lifestyle.

For workplaces, the survey indicates that Generation Z values the office as a place for social interaction, collaboration and early-career development. This generation’s desire to spend most of the week in the office does not diminish the importance it places on work-life balance. Employers should therefore prioritise reliable technology, accessible locations and spaces that support teamwork, alongside a workplace culture that gives employees meaningful reasons to attend.

For governments, the survey shows that home ownership remains an aspiration for Generation Z, even though affordability prevents many from realising it. Increasing housing supply can help to ease this constraint, but new homes also need effective connections to employment and amenities. Whatever the constraints to building more homes, younger residents need affordable, well-connected places where they can participate in working and social life.

Real estate cannot resolve every financial or social pressure facing Generation Z. It can, however, reduce some of the tensions identified in the survey by providing more affordable, connected and adaptable places in which people can build relationships, access opportunities and participate in community life.