LOS ANGELES—At the annual USC Gould Real Estate Law and Business Forum yesterday, Leanne Lachman, president of Lachman and Associates and the Executive in Residence at the Columbia Business School, joined a team of Gen Y'ers to discuss how this new generation is changing consumerism and affecting the real estate market. The Gen Y response panel included Alexander F. Knott, VP at Wells Fargo; Jamie Lee, CEO of Jamison Realty; Daniel K. Liffmann, Sidley Austin LLP; and Matthew Lucido, CEO of Porter Inc.

According to Lachman, Gen Y, which includes those born between 1978 and 1995, is now larger than the baby boomer generation, and as such of are major source of demand in the market. Four in 10 millennials consider themselves to be urban people, living either downtown or in another neighborhood within urban boundaries. Because of Los Angeles' unique urban geography, Los Angeles has a higher percentage of millennials who consider themselves suburbanites.

Due to this focus on city living, millennials crave a entirely different consumer experience than their baby-boomer parents. Millennials value “interest over comfort,” according to Lachman, and would rather pay for experiences than goods. This means that customer service and design are extremely important to the millennial consumer, who would shop in the traditional brick-and-mortar store so long as they get an experience and service they wouldn't otherwise have shopping online. Likewise, millennials will pay for services, like laundry and dog walking, to by back leisure time in their lives. These are consumers who are looking are goods and money in a very different way from past generations.