With these new demographic patterns, Haddad's Five Point Holdings has taken a new approach to development, which, as he says is to “go back and scramble the egg.” In other words, mixing and crossing real estate asset classes. “We mix everything from asset class to income,” he said. Five Point Holdings, which currently has projects in San Francisco, Los Angeles and Orange County, is creating live-work-play communities with everything from housing and office spaces to retail, entertainment and hotels. “We are changing the way that people live,” he said.

LOS ANGELES—This is the age of major demographic shifts, and they are directing everything from the way that we plan and build real estate to our politics. Emile Haddad, chairman and CEO of Five Point Holdings, talked about the demographic shifts at the 2017 USC Gould Real Estate Law and Business Forum and how these shifts are informing their community developments in California.

“We are at an interesting moment in history in terms of demographics,” said Haddad. “We live in a time today that is very similar to the turn of the 20^th century.” Haddad compared the current trends in demographics to the industrial revolution, saying that our tech disruption is similar. During that time, people moved to cities and major cities grew. We also saw the rise of political movements, like Fascism and Nazism, and Haddad drew a parallel between our countries current political climate and the political movements in the early 20^th century. “We are seeing many things disrupt the economy and we are seeing political disruption,” he explained.

For the last five decades, the world has been catering to baby boomers for the last five decades, because they have been the dominate demographic; however, in 10 years, the oldest millennial is going to be 50 and the youngest is going to be 35. “Millennials are going to be driving the economy going forward,” Haddad added. Now, Gen Z is the next demographic set to inform the market. The demographic is now starting to graduate from college. “We don't even talk about Gen Z, but in 10 years, the oldest will be 32,” said Haddad, adding that they both want similar living environments that focus on live-work-play.

With these new demographic patterns, Haddad's Five Point Holdings has taken a new approach to development, which, as he says is to “go back and scramble the egg.” In other words, mixing and crossing real estate asset classes. “We mix everything from asset class to income,” he said. Five Point Holdings, which currently has projects in San Francisco, Los Angeles and Orange County, is creating live-work-play communities with everything from housing and office spaces to retail, entertainment and hotels. “We are changing the way that people live,” he said.