[EXCLUSIVE] Ipsos x Business Immo study: Young French people and the city of tomorrow

Is each generation that is born a new people, as Alexis de Tocqueville once suggested? Faced with multiple (r) evolutions, from teleworking to e-commerce, including urban densification, the real estate industry must understand today how we will live, work or consume tomorrow. To support it in this projection exercise, which is as necessary as it is perilous, Business Immo interviewed the new generation of real estate users, with the help of the Ipsos Institute.

The vast majority of young people interviewed see themselves living in individual housing (79%) within five years, compared to 10% of young people who plan to still live with their parents. This option is more preferred among 25-30 year olds (85%) than among 18-24 year olds (73%). A sign that this type of offer is still struggling to impose itself significantly in France as a residential solution, only 13 of the 1,080 respondents — ten men and three women — imagine living in a coliving residence offering various services. And this, regardless of the size of the agglomeration.

Despite those who see the residential dream as a relic of the past and who preach for urban densification, half of the respondents (51%) plan to live in a single-family home within five years, compared to 41% in an apartment, and only 3% in a coliving-type service residence. Moreover, even 18-24 year olds are divided equally between the two (45%). People aged 25-30 have a clear preference for single-family homes, while 58% prefer single-family homes compared to 36% for apartments. In the same vein, respondents who are married (68%), in a civil union (77%) or in a common-law relationship (65%) overwhelmingly express their preference for the flag.

“The results also indicate that single-family homes are much more popular with “rural” areas (76%) than by residents of Île-de-France (36%), probably here for reasons of supply depending on the environment”, also notes Ipsos. Again, observing the marginal appeal of collective lifestyles such as coliving or shared living — only 5% of young people plan to do so in five years —, the institute notes, however, that “these are perhaps lifestyles that are less likely to be expected in the medium term”.

A clear consensus is emerging on the attractiveness of outdoor spaces for young people: 88% of respondents consider it important to have access to a balcony, garden or courtyard; and half of them see it as a “very important” element of their future home. Even 92% of 25-30-year-olds find it important to have an outdoor space. This concern is also shared by young people living in rural areas (91%) as well as by those living in a regional metropolis with a size greater than 200,000 inhabitants (90%) or the Paris region (83%).

According to INSEE, 57.2% of French households owned their main residence in 2023, a relatively stable level compared to the 57.7% recorded ten years earlier. Clearly, the tightening of financing conditions and the multiple crises encountered by the housing sector have not affected young people's desire to own real estate. In fact, 77% of respondents hope to have owned their home by the time they reach 35 years of age, compared to only 15% who prefer to rent.

Even in regional cities (74%) and in the Paris region (78%), where prices are however the highest, 18-30-year-olds very much aspire to home.

However, disparities are observed according to the educational level of the respondents. Where 88% of holders of a bac + 5 diploma or more hope to be owners at 35%, only 66% of holders of a CAP or a BEP share this aspiration.

Within five years, only 16% of respondents project themselves in the Paris region and 19% in a regional metropolis. The average city has the most support from young people, at 36%, followed by the village with 22%. It is interesting to note that 72% of young people in Île-de-France see themselves staying in the Paris region or working in a regional metropolis, where only 22% plan to live in a medium-sized city or village. Conversely, 85% of respondents living in rural areas imagine living in a village or a medium-sized town, and 11% see themselves living in a regional metropolis or in the Paris region. “Young people in the Paris region therefore seem to be less likely to want to remain in a similar environment, unlike young people living in rural areas,” concludes Ipsos.

Significant gender disparities are also observed. Twice as many men as women plan to live in the Paris region (22% vs 11%). The survey also reveals a significant gap in the attractiveness of medium-sized cities (42% for women compared to 29% for men).

Metropolitan life seems to particularly attract self-employed workers, with two-thirds of them planning to live in the Paris region or in a regional metropolis within five years. On the contrary, three out of five employees, full time or part time, consider working in a medium-sized city or village instead.

Although their home stands out as the most popular working environment for young French people (38%), the office is not denied and is, on the contrary, the preferred workspace for 34% of respondents. It is even the most popular workplace among young senior managers (55%) and those in middle professions (44%). Moreover, half of graduates with a high school diploma and above prefer to work in an office, while only 24% of young people with only a bachelor's degree plan to do so.

“When it comes to work, the most important thing for young people is clearly proximity to housing for 60% of them, and even 66% of 25-30-year-olds”, observes Ipsos right away. Far behind, access to public transport (31%) and proximity to shops/bars/cultural offerings (25%) are the other two most important criteria for young people when it comes to the location of their workplace. Conversely, proximity to a major city (13%) or the presence of other businesses (6%) are priorities for only a minority of respondents. A

sign of a trend that is as strong as it is obvious, proximity to housing is favoured by a clear majority of respondents, regardless of the professional situation: 70% for senior managers, 57% for intermediate professions and 65% for employees. On the other hand, proximity to a large metropolis is important for twice as many self-employed workers as senior managers (20% vs 9%). Moreover, while proximity to their home is the priority criterion for men as well as for women, it is nevertheless interesting to note a certain disparity between the two (53% vs 66%).

“For young people who want to work in an office, the preferences are not necessarily very clear,” observes Ipsos. It seems that a majority of respondents prefer human-sized tertiary buildings, while 29% prefer “traditional” buildings with only businesses among their tenants, and 28% prefer mixed buildings where the office is not the only real estate use. Conversely, large campuses on the periphery (16%) and towers over 12 floors (12%) only attract the favor of a minority of respondents. Additional proof of the uncertainty of young French people about their preferences in terms of tertiary real estate: 16% cannot make a decision and do not show a marked preference.

It should be noted that, although they prefer mixed buildings (29%) or “classic” office buildings (27%), Île-de-France residents seem to appreciate office towers more than their provincial counterparts. Indeed, 21% of young people living in the Paris region reported a predilection for high-rise tertiary buildings, compared to only 11% for those living in a regional metropolis. In the same vein, barely 5% of young people living in a town of less than 20,000 inhabitants prefer the tower.

“Flex office remains the trend, which is well established”, advanced last April to Business Immo Catherine Saint Geniest, associate lawyer in charge of real estate law practice and Co-Managing Partner at Jeantet, questioned about the real estate strategies implemented by French companies following the health crisis. Also, real estate managers may be disappointed to see that this organization of space is preferred by only 8% of young French people. On the contrary, they very much prefer the assigned seats, whether in an individual partitioned office (39%), in open space (28%) or in a partitioned team office (19%).

This clear rejection of flex office is also confirmed regardless of the age, gender, professional status, place of origin or level of education of the respondents. However, it should be noted that open space is more popular among senior managers (38%) than among middle professions (28%) or employees (21%). It is also the preferred option for young people with a bac+5 diploma and above (40%).

For their food shopping, the vast majority of young people prefer large and medium-sized stores (83%), and more supermarkets (48%) than hypermarkets (35%). Conversely, grocery stores and convenience stores are only popular with 6% of young French people, who also do not use digital solutions such as delivery or drive-thru much more for their food purchases (7%). Even among 25-30-year-olds, who are slightly more adept than their younger counterparts, this option remains very marginal (9%).

And not surprisingly, more respondents who prefer to do their food shopping online are more numerous in rural areas (10%) than in the Paris region (7%).

Who said that e-commerce sounded the death knell for physical commerce? While nearly a quarter of young French people primarily complete their purchases via their smartphone, tablet or computer, a large majority prefer to shop in person. Announced for a long time as moribund, the shopping center is even attracting the favor of 40% of respondents, compared to 16% for the shopping streets. In fact, it is almost twice as popular as e-commerce among 18-24 year olds (42% vs 23%).

In the same vein, where the shopping center is the place of business for one young French citizen out of two, it is the preferred choice of only 36% of respondents living in a regional metropolis and 35% of those living in a medium-sized city. On the other hand, strolling through the shopping streets seems less popular in the Paris region (11%) than in regional cities (16%).

“If we are interested in what drives young people to go to a store, for one in two young people, it is the products themselves (52%)”, observes Ipsos when analyzing the drive-to-store factors that are most powerful among young people. For nearly one in three young people, the proximity to the store (34%) and the brand (32%) are also important factors in their choice. Conversely, some will be disappointed to learn that communication elements such as advertising and social networks (13%), the layout of a store (10%) and even accessibility, whether by transport or by car, encourage few young French people to go to stores. “This proximity/accessibility gap highlights that, even if accessibility by transport is appreciated, it is not enough to compensate for a desire for proximity”, note Ipsos. Even in the Paris region (15%) and in regional cities (16%), accessibility comes well after products, brands and proximity in the priorities of young French people.

While more men are sensitive to the brand (36% vs 28%) and products (55% vs 49%), more women are influenced by the window (21% vs 15%), the layout of a store (12% vs 7%) and communication (15% vs 10%).

Moreover, where the store experience is important for 25% of senior managers, it is only important for 10% of employees.

According to the study “Key e-commerce figures 2024" published on July 10 by the E-commerce and distance selling federation (Fevad), “France is the second largest e-commerce market (products and services) in Europe (€159.9 billion)”, a figure up 10.5% compared to the previous year. It also reveals that “39.4 million French people buy on the internet, or 500,000 more in one year”, and that 85.6% of 15-29 year olds made an online purchase during the year 2023.

However, young French people have not completely turned away from physical commerce. Because while 31% of 18-34 year olds use both modes of consumption equally for their non-food purchases and 29% are more adept at online than physical commerce, 39% visit stores more than e-commerce platforms. In addition, only 7% say they make all of their purchases online, compared to 15% who only visit physical stores.

The penetration of e-commerce into the consumption habits of young French people seems similar regardless of the size of the agglomeration where they live: 29% in the Paris region, 32% in a regional metropolis, 30% in medium-sized cities and 31% in towns with fewer than 5,000 inhabitants. However, some may be surprised to observe that 18-24 year olds prefer e-commerce less than their 25-30 year olds (25% vs 33%). In addition, senior managers (37%) and respondents in intermediate occupations (35%) use online commerce more for non-food purchases than manual workers (27%) or employees (26%).