Exploring the Complexities of Millennial Housing Choices: An Analysis of the Influence of Neighborhood Factors
AbstractThe varied behaviors and values exhibited by individuals from different age groups have had a significant impact on the availability of housing options in the residential market. Housing preferences are highly personalized, with observable differences in choices across generations. In today's housing market, the most influential consumer group is the millennial generation, born between 1981 and 1996, who are considered to be optimistic, open-minded, innovative, confident, motivated, and intelligent. The housing choices made by millennials are particularly influential in the performance of the housing market, and the factors associated with neighborhoods have played a critical role in determining such choices over recent decades. Nevertheless, previous studies have primarily focused on the general housing buyer's perspective, without considering the unique perspectives of the millennial generation. In this context, this study seeks to investigate the diverse neighborhood factors that shape the housing decisions of millennials in Colombo district, Sri Lanka. Four dimensions of neighborhood factors were identified as social neighborhood, natural environment, neighborhood safety, and accessibility, and hypotheses were tested for each dimension concerning housing choices, which were evaluated as a single dependent variable. The study employed a sample of 145 millennials in Colombo District, with data collected through a survey questionnaire utilizing the convenience sampling technique. PLS-SEM was used for data analysis. The results suggest that accessibility has a significant impact on housing choices, while natural environment has a moderate influence. In contrast, the research showed that neighborhood safety minimum influence on the housing choices of millennials. The finding confirms that social neighborhood does not have a significant impact on housing choice. The result of the study makes significant implications for real estate market investors and planning professionals, as it provides insight into the neighborhood factors that impact a buyer's purchasing decision and enhances understanding of millennial consumer behavior in urban areas.