Sustainable Housing: A New Standard Driven by the Next Generation

Young buyers are reshaping the real estate market with their demand for eco-conscious living.

Sustainability is no longer just a buzzword in real estate—it's becoming a core expectation, especially among younger generations. Gen Z and millennials are leading a shift toward homes that reflect their environmental and ethical values, compelling developers to move beyond surface-level “green” features and build truly sustainable living environments.

This growing eco-awareness is influencing how developers plan, build, and market homes. From the earliest stages of design to final construction, there’s a rising demand for energy-efficient systems, green spaces, water-saving technologies, and materials that are both environmentally and socially responsible.

Gen Z Sets the Bar Higher

According to the SCB Economic Intelligence Center (EIC), Gen Z stands out for their strong interest in housing that aligns with Environmental, Social and Governance (ESG) principles. Their preferences are more pronounced than those of any previous generation, with nearly 99% of respondents in SCB EIC’s 2024 housing survey expressing interest in ESG-compliant homes.

In comparison, interest among older age groups still remains high—ranging from 90% to 94%. But it’s Gen Z who are most willing to invest in sustainability, with 68% saying they’d pay more for ESG-aligned homes. That’s significantly higher than baby boomers (61%), Gen Y (58%), and Gen X (55%).

For Gen Z, buying a home is about more than just ownership—it’s about living in a way that aligns with their values. They prioritize materials that reduce indoor heat, save energy, and improve health for both people and pets. In fact, over 90% of consumers surveyed said they value these kinds of features, while 76% said they would pay up to 5% more for eco-friendly materials.

Beyond the Home: ESG as a Lifestyle

The push for sustainability isn’t limited to home buying. A 2022 survey by Amundi and The Business Times in Singapore found that 82% of Gen Z and 63% of millennials had invested in ESG-focused funds or assets—compared to just 41% of Gen X and baby boomers. This highlights how deeply integrated ESG values are in the financial and lifestyle decisions of younger generations.

Net-Zero Carbon Homes Gain Traction in Thailand

In Thailand, a November 2024 survey by Terra Media and Consulting revealed that net-zero carbon homes are now among the most desired innovations in housing. The most sought-after features include solar panels, green materials, electric vehicle (EV) charging stations, flood-resilient layouts, and composting systems for food waste.

Interestingly, Gen Z was the only group that showed a strong interest in all these features, underscoring their comprehensive commitment to sustainability. Other generations favored different combinations, indicating that developers need to adapt their offerings to suit diverse priorities.

As Terra’s managing director, Sumitra Wongpakdee, noted: “Sustainable design isn’t one-size-fits-all. Developers need to address generational differences while maintaining strong environmental standards.”

Strategic Shifts for Developers

SCB EIC advises developers to integrate ESG principles from the ground up—starting with responsible land use and eco-conscious designs, all the way to sustainable construction practices. Operational sustainability is just as critical, including energy-efficient infrastructure, smart water systems, waste reduction, and community-driven green planning.

This isn’t just about ethics—it’s about competitiveness. ESG-forward projects can access green financing and government incentives more easily, while also preparing for stricter environmental regulations. Moreover, these developments tend to reduce utility costs, improve resident health, and strengthen a developer’s brand.

Communicating the Value of Green Homes

To win over today’s buyers, especially Gen Z and millennials, developers must rethink their messaging. It’s not enough to promote environmental benefits—they must clearly highlight how sustainable features enhance comfort, health, and long-term savings.

What defines a desirable home is evolving. Today’s buyers are looking for resilient, ethically built homes with long-term value—not just in cost, but in quality of life. Green housing is no longer optional; it’s expected.

Looking Ahead

The move toward sustainable housing is a permanent shift. Developers who embrace this transformation now won’t just stay competitive—they’ll help shape a healthier, more sustainable world for future generations.