While Generation Z and previous generations may have spent a lot of time gaming and paying for entertainment, the new generation seeks balanced activities that allow them to earn and create value online. The Alpha generation, born after 2010 and projected to continue until 2024, consists of 2 billion people, becoming the largest generation that has ever been. What sets this generation apart is their apparent disinterest in the traditional concept of real estate ownership as a source of security. Traditionally, across all generations, owning a home has been viewed as a form of financial security, ensuring stability for oneself and future generations. However, the Alpha generation is likely to see ownership of real-world assets such as homes and cars as a burden.

‍

Today, governments employ real estate as a tool to regulate inflation, imposing property taxes, high electricity bills, and interest rates. Consequently, the once-perceived security of homeownership has transformed into a financial burden. This shift reflects a societal need to address economic disparities, challenging the traditional notion of housing security.  

‍

The Alpha generation favors collective ownership over individual possession. They are more inclined towards digital assets, which afford them greater control and the ability to create value collaboratively. Unlike Generation Z, who may have prioritized leisure and satisfaction, or fulfilment, the Alpha generation values balance and endeavors to utilize their online time for productive and value-driven activities.

‍

Having freedom to travel and explore characterizes the Alpha generation, who do not seek a strong attachment to specific locations like previous generations. They are likely to engage in collective initiatives and participate in token economies facilitated by blockchain technology, changing direction from the rigid ownership structures of previous generations.

‍

Modern authorities, particularly within socialist spheres, increasingly view physical assets as tools for economic control, imposing regulations that hinder individual financial freedom. This contrasts with previous eras, such as the 1980s when high-interest rates were offset by significant interest rate deductions. Today, an entire generation grapples with the consequences of governmental interventions that restrict economic mobility, signifying a clear departure from historical norms.

‍

Join our LinkedIn discussion: How do you think traditional industries and investment sectors will need to adjust to address the preferences and behaviors of Generation Alpha?

‍

I highly recommend reading The Business Case for Understanding Generation Alpha:

https://hbr.org/sponsored/2023/07/the-business-case-for-understanding-generation-alpha

‍