Real estate developers race to build homes for fitness and wellness-obsessed Generation Z
Gen Z is doing more than just taking over gyms — their investments in fitness and wellness are influencing residential real estate design in the long term.
This group of young consumers is hailed by Les Mills as the “Active Generation” for their passion for fitness. Nielsen IQ Their enormous future spending power sets the stage for new generations to be expected to invest their hard-earned money in measures that support longevity.
Generation Z is a unique group that differs from previous generations – they are digital natives, marrying and having children later in life, and according to recent surveys, the number of Gen Z renter households will reach 7.9 million by 2022. Discover Written by Harvard University’s Joint Center for Housing Studies, the report notes that Gen Z homeownership rates are higher than millennials’ rates at the same age, but the findings suggest that young people have embraced the flexibility that renting offers.
Just as gyms and boutique fitness studios are catering to Gen Z by offering personal training and adding strength-training equipment, real estate developers are quickly following suit—and are on track to complete nearly 520,000 rental units by the end of the year. 30% increase Starting from 2022.
Healthy Home
As the Global Wellness Institute (GWI) points out, health is the new wealth, and the newest luxury is wellness—but when it comes to residential living, it’s not just for high-income earners.
According to GWI Report Exploring the booming wellness real estate market and future forecasts, amenities such as gyms, spas, swimming pools, and elements that promote mindfulness, sleep, and mental and social well-being are expected to soon appear in mid-market and affordable properties.
Mixed-use apartment buildings have opened up opportunities for fitness and wellness brands to set up shop, offering convenience to younger residents who are invested in their health. The new Commodore Apartments in Arlington, Virginia, features an expansive fitness center, a waterfall pool, an outdoor terrace with casual seating, and a coworking space for residents, while the ground floor houses YogaSix, Rumble Boxing Moved in soon.
Other residential buildings are taking a simple approach: outfitting their fitness facilities with high-end equipment to attract younger fitness enthusiasts. In Washington, D.C., The Collective offers tenants a fitness facility with new Peloton bikes and weekly trainer-led spinning classes.
Enjoy health
But other developers are taking it a step further, such as Boston-based real estate developer Redgate, which has created a health and wellness haven. gibson pt. Located in Revere, Mass., this high-end, 291-unit oceanfront property features a fitness center, studio spaces designed for yoga and barre, a Zen garden, a sauna, a cold plunge pool, and a recovery room equipped with massage guns, Therabody foam rollers, and Normatec compression boots. Residents can also book massages and enjoy an indoor/outdoor shared workspace with a standing treadmill desk.
“From our state-of-the-art cold plunge pool to the tranquil onsite spa experience, every amenity at Gibson Point has been carefully curated to nourish your body, mind and soul,” said Damian Szary, principal at Redgate.
Gibson Point follows the philosophy Life Time employs in Life Time Living, a luxury living experience with residential spaces in Connecticut, Florida, Massachusetts and Nevada that emphasizes all aspects of fitness, wellness and socialization — pillars of the sports country club brand. In addition to club access, Life Time Living offers concierge services to residents, including customized weekly meal prep deliveries, personal training, nutrition coaching and massage therapists.
While real estate developers continue to integrate fitness and wellness experiences in high-end and mid-range residences, high-value, low-price (HVLP) chains such as Planet Fitness, Crunch Fitness and EoS Fitness continue to cater to the Gen Z fitness community.
New Planet Fitness CEO Colleen Keating recently told investors that Gen Z continues to make up the majority of Planet’s net new members each quarter.
The fitness giant has been seeding fitness among young consumers through its successful high school summer pass program, which invites local teens to work out at Planet Fitness gyms for free during summer break. The program, now in its fourth year, has paid off, Keating said, with a 5.5% conversion rate to paid memberships in 2023.
