Integrating behavioural economics and sustainability criteria into real estate decision-making: evidence from Generation Z consumer

Purpose This paper aims to investigate the evolving residential preferences of Generation Z (Gen Z) consumers in the context of global urban transformations and socio-economic uncertainty. This study examines the role of rational and behavioural considerations in shaping preferences for traditional, sustainable, digital and smart housing attributes and explores whether these preferences differ between Gen Z consumers in Ukraine and Poland. Design/methodology/approach This study integrates a literature review of residential preferences, behavioural economics, sustainable housing and smart-home technologies with an empirical survey of residential real estate consumers in Ukraine and Poland. Exploratory factor analysis was applied to identify the latent dimensions of residential preferences; Cronbach’s alpha was used to assess their internal consistency; and comparative statistical analysis was conducted to examine cross-country differences. The empirical findings were subsequently translated into a conceptual design of a smart and sustainable apartment, linking identified consumer preferences with relevant residential design solutions. Findings The results of this study indicate that Gen Z residential preferences are predominantly associated with rational considerations, particularly safety, comfort, housing quality, family-oriented functionality, energy efficiency and digitalisation, while smart and sustainable technologies complement rather than replace traditional housing attributes. Importantly, no statistically significant differences were identified between Ukrainian and Polish respondents across any of the four latent dimensions. Despite substantial differences in the current socio-economic, institutional and security contexts of the two countries, this convergence suggests that common generational values may contribute substantially to residential preferences alongside country-specific conditions. Practical implications The findings of this study provide practical guidance for developers, architects, urban planners and policymakers by indicating that smart and sustainable housing solutions should be integrated with fundamental residential attributes such as safety, comfort, functionality and housing quality. Energy-efficient technologies, digital systems, environmental monitoring and smart-home solutions should, therefore, be designed and communicated through their practical contribution to everyday residential needs rather than technological novelty alone. The proposed apartment concept illustrates how empirically identified Gen Z preferences can be translated into user-centred sustainable residential design. Originality/value This study contributes to residential consumer behaviour research by integrating behavioural interpretation with traditional, sustainable, digital and smart-housing preferences and by examining their cross-country convergence among Gen Z consumers. The absence of statistically significant differences between the Ukrainian and Polish samples provides initial empirical support for an emerging supranational model of Gen Z residential preferences, in which shared generational values may transcend national differences. Rather than claiming universal applicability, this study introduces this model as an empirically grounded concept requiring further validation across larger samples and a broader range of national contexts.