Bringing a little joy into people's lives should be a guiding design principle.
Why can modern life be such a drag?
Let's not kid ourselves, modern life can be tough.
The permacrisis of the last few years have often made one want to watch the news from behind the sofa. There's the non-stop barrage of push notifications direct to your phone updating us on the latest global disaster live as it happens. Everything from geopolitical uncertainty and wars raging, to the Cost of Living crisis, the rise in use of food banks, and dare I mention the dreaded C word?
On top of these, there is the invasive nature of social media. Often making us question our own self worth. Was I really a failure for not being able to afford my own private jet to Ibiza at 25? Sometimes Instagram would have me believe so. The vile nature of the comment sections online often makes me question whether there are any decent people in the world, or if everyone is just a troll or a bot.
Here in the UK, we have some of Europe's least happy young people. Behind all the likes, LOLS and "Ok Boomer" comments there's a growing number of disenfranchised people. This isn't just the typical melancholy of a hormonal teenager, nor can all their financial worries be blamed on buying too many avocados. Since around the time of the GFC, Western societies have seen a sharp increase in the levels of unhappiness in young people. Not surprising if we think about all the challenges they've lived through, following a time of relative stability at the end of the Cold War.
The findings of the World Happiness Report 2024 makes for some concerning reading, if, like me you're a person from Western society under the age of 43.
Those in Gen Z (defined as being born between 1997 and 2012) and Millennials (born between 1981 and 1996) in the US and Western Europe are unhappier than older generations. This goes against the previously held assumption that people generally get unhappier in later life following a peak of happiness in their 20's.
This is not the case in other parts of the world, where improvements in quality of life, access to health services, job opportunities and improved levels of education have created a sense of optimism amongst their younger populations. The feeling in these countries is that their lives will be better than those experienced by their parents generation.
The malaise of the younger generations in Western Society shouldn't be discounted as "just a phase they'll grow out of". After all, elder millennials are in their 40's now, where traditionally they'd be seen as being at their peak.
The problem is that without happiness people disconnect with society. It can lead to a feeling of isolation, helplessness and desperation impacting every single part of a sufferers life. They find themselves unmotivated and uninspired to work, less likely to interact with wider society impacting our national GDP. It can lead to a decline in not just our mental, but, our physical health putting extra strain on the NHS, that perennially flogged beast of burden. This shoulder of responsibility ultimately putting greater strain on the public purse. The domino effect is truly staggering, happiness is a metric that creates value and protects the bottom line. Whilst there is no panacea or silver bullet for addressing this issue, it is my belief that the property industry and those related to it can do their bit to help.
According to the World Happiness Report 2024, the UK is the 20th most happy country globally. Not too bad at first glance. However, taking age demographic into account, the look towards the future is less rose tinted. The happiest age demographic are those aged 45 - 59 (Generation X) and 60+ (Baby Boomers), which come in at 19th and 20th in the world when looked at individually. Rather bleakly the happiness levels of those aged 30 - 43 (Millennials) and the under 30's (Gen Z plus some Gen A) drops of down to 27th and 32nd. This does not make for positive reading, the future used to be a place of optimism.
The power of the property industry in making us happier
It is no surprise to me that the level of happiness in the UK and the level of home ownership are intertwined. Famously, according to Maslow, shelter is a basic need for all humans, along with other extravagances such as food and water.
For many younger people the dream of home ownership is so far out of reach without the support from the bank of mum and dad, that many have given up on it. In markets such as London where buying a house requires not only a huge deposit, but large salaries with the cost of an average home is over 10 times the average annual salary, buying is not an option. Couple this with inflationary pressure, it is no surprise that it is out of reach for so many and this is a national issue.
The rental sector is providing an opportunity to help with this issue, historically associated with grubby HMO's and dodgy landlords but times are changing. The arrival of professionally managed and specially designed homes for BTR and the emergence of Co-Living, the industry pin-up could be a zenith for the sector.
It is my belief that it is up to the industry to help create environments that encourage interaction between people and help nurture those relationships. Connected communities have huge positive impacts on place. People make friends, fall in love, set down roots where they feel a part of a community. With what seems to be the preferred working hybrid of WFH/office, people are spending more time in their communities. We need to make those environments as joyful as possible to ensure people feel connected. Placemaking is not a new philosophy, however, there are still too many developers who think of it as an after thought and not a credible value generator. After all if someone loves where they live, they won't want to leave and as we learn more about the world of residential investment, developers views on legacy are changing for the better.
It isn't just the Developer who benefits. Those who feel connected with a place are more prone to acts of benevolence and giving back to their areas. Going for coffee with a friend, or, buying a pint of milk from the shop are more likely to happen if you like where you live. The wider knock on effects are huge, just ask any socio-economist.
The issue for the rental sector is that demand far outweighs supply. With listing times often being snapped up in a matter of hours there are still many issues to overcome. This competition for rental accommodation result in prices hiking up, and we find ourselves back at the start of the problem. The issue is so bad that official figures suggest the UK has 3.5m under 35's unable to rent and are living back in the family home, delaying their lives in the process.
The answer of course, is that we need to build more homes to alleviate the strain and clearly this includes many more affordable homes. We don't just need one type of home, or, in one location as some politicians would want us believe. We need lots of different typologies, in a variety of different locations and tenure types to mirror the nuanced and myriad demands required by our society. Just saying developers should build homes on brownfield land is not the answer. It can play it part of course, just not all.
It is not about if one generation does better another should not. Why should it mean that if one cohort experiences an increase level of happiness, another should surely have to pay for it? In property the rise of quality products within the retirement sector has been great. From an investment stand point this is now a multifaceted and attractive sector which will only be in more demand with our aging population. The rise of desirable products in this space no longer makes one think that this is just a place for people to go before pushing up the daisies. Thankfully, the emerging retirement products often share the same goal of creating connected communities.
In reality property is just part of the human condition, it mirrors society. If we create places full of joy, with the human experience at the forefront of our intentions, then surely we all benefit?