IN-PERSON London. Section A

Abstract

The surge in compact real estate, typically measuring less than fifty square meters, has emerged as a trend in global cities. This phenomenon correlates with the concentration of intellectual and creative professions within urban centers that show a flexible approach towards their living situation if it is seen as temporary. It also relates to demographic shifts such as generations Y and Z delaying family formation or choosing alternative lifestyles. Concurrently, the financialization of real estate, driven by technology companies offering streamlined rental processes, plays a pivotal role in reshaping urban housing landscapes when focusing on these transitory cohort of urban dwellers. Our research aims to explore these intertwined factors and discuss the hypothesis that financial strategies in real estate markets target increasing urban space profitability by promoting housing turnover through a rhetoric emphasizing the detachment of contemporary life from the traditional dream of owning real estate. Despite this trend, the aspiration of homeownership persists, albeit delayed by the allure of compact, hassle-free residences. These smaller dwellings serve as a steppingstone for younger generations, granting access to the real estate market considering the mounting challenges in attaining larger properties due to low income and soaring prices. Consequently, decisions regarding acquiring larger properties are contingent upon the professional trajectories of generations Y and Z and their familial progressions. This research offers insights into the transformative impact of compact real estate trends on urban housing markets in Brazil, shedding light on evolving consumer behaviors and preferences. The results point out to upcoming challenges for livable cities concerning how young generations access the real estate market.