Sustainable housing the new trend

Younger generations demand real estate that reflects their environmental values, writes Kanana Katharangsiporn

- Kanana Katharangsiporn

Sustainability has become a defining factor in the housing market, with younger generations demanding homes reflect their environmental values — pushing developers to move beyond green labels and deliver truly responsible, future-proof residential solutions.

Rising environmental awareness is transforming buyer expectations, prompting developers to adopt authentic, forward-looking sustainability practices that span the entire development process — not just surface-level features or end-stage certifications.

Residential projects that integrate sustainable living concepts such as energy-saving systems, green space and water conservation are increasingly shaping purchasing decisions.

These considerations are especially pronounced among Gen Z, who are emerging as influential homebuyers.

ESG-ORIENTED GENERATION

SCB Economic Intelligence Center (EIC) identified Gen Z as placing a high value on housing aligned with environmental, social and governance (ESG) principles, showing greater interest than any previous generation.

ESG criteria include responsible construction methods, eco-friendly materials, reduced pollution, and integration with the community. These values align with Gen Z's growing preference for sustainable and ethically responsible products and lifestyles.

Nearly 99% of Gen Z respondents in SCB EIC’s 2024 housing survey said they are interested in ESG-oriented residential projects. For other age groups, the rate ranged from 90% to 94%, which is still significant.

Some 68% of Gen Z buyers also indicated they are willing to pay more for ESG-aligned homes, compared with 61% of baby boomers, 58% of Gen Y and 55% of Gen X, according to the survey.

This willingness to invest more reflects a long-term value mindset. For Gen Z, buying a home is not only about ownership, but also aligning lifestyle choices with their environmental and ethical values.