What does Gen Z want in an apartment?

Property technology You know that Gen Z renters prioritize high-speed internet. So it shouldn't surprise you that they also seek property technology more than any other generation. In fact, 62% of young renters say that apartment technology is extremely important to them when searching for a new home.

How many Gen Z are renters?

Generation Z, the only renter-majority generation, eclipsed 5 million households in 2022 and will become the largest renter demographic by 2030.

How is Gen Z shaping the future of apartment living?

Renting preferences of Gen Z Additionally, Gen Z values authenticity and individuality in their living spaces, which translates into their rental preferences . They seek rental properties that align with their personal beliefs and values, whether it's an eco-friendly apartment or a unique loft with character.

Can Gen Z afford housing?

Despite Increasing Salaries, Gen Z and Millennials Can't Afford Houses . “This is a resilient response to the very dramatic increase in rental burden. The average proportion of a person's income that goes to rent was 25% in 2000, and it's now 40%. That's really a striking increase,” Wachter said.

What percent of Gen Z can't afford rent?

Of those who currently rent, nearly a quarter (24%) say they can no longer afford to pay their rent. This problem was most pronounced among millennials and Gen Z ( 30% and 27% respectively), compared to just 10% of respondents aged 69 and above.

How old is Gen Z expected to live?

The members of Generation Z, the oldest of which are now in their 20s, on average are expected to live to 100 and beyond . Health technology may or may not eventually lift Gen Zers well past that.

How much does Gen Z spend on rent?

On average, the study found, Gen Z-ers old enough to be in the housing market — those born between 1994 and 2000 — will spend about $145,000 on rent by their 30th birthdays , while millennials — born between 1981 and 1996 — spent $127,000 during the same stage of life.

What things are Gen Z interested in?

Gen Z's standout priorities for 2024 are centered around self-enrichment: things like starting new jobs, learning new skills, reading more, or finding love .

What does Gen Z look for in a house?

For members of Gen Z, their homes might also be their place of work, at least for a portion of their week. So they're looking for properties with home offices or quiet areas where they can log in for the day . Properties that offer a home office or quiet area to do work in is important for Gen Z.

What does Gen Z need the most?

The vast majority of Gen Z respondents reported that authenticity is more important than any other personal value tested, including: spending time on things that will help their futures, independence, changing the world, and being rich or famous . Gen Zs aren't looking for “picture perfect.”

What kind of spaces does the Gen Z prefer in a house?

Most Gen Z's are interested in smaller homes since they are just starting families and are concerned about affordability. They also desire to reside close to work as well as friends and family. Open floor plans are ideal for gathering.

Embracing Gen Z Renters Is the Next Big Opportunity for Investors

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As the real estate landscape continues to evolve, landlords are faced with the challenge of adapting to the preferences and expectations of the emerging generation of renters: Generation Z. Born between the mid-1990s and early 2010s, Gen Z is characterized by its tech-savvy nature, social consciousness, and desire for convenience.

To successfully navigate this changing demographic, landlords must embrace innovative strategies that cater to the unique needs and preferences of Gen Z renters.

Understanding Gen Z

To effectively cater to Gen Z renters, landlords must first understand the key characteristics that define this generation. Gen Z is the first generation to grow up in a fully digital era, with smartphones and the internet playing a central role in their lives.

This generation values sustainability, diversity, and experiences and tends to prioritize flexibility and convenience in their lifestyle choices. Landlords can leverage this understanding to tailor their approach and create rental experiences that resonate with Gen Z tenants.

Gen Z Renters and Technology

One of the most significant wayslandlordscan appeal to Gen Z renters is by embracing technology in property management. Gen Z individuals are digital natives accustomed to seamless online experiences. Therefore, landlords should invest in user-friendly online tools for property searches, applications, and lease management.

Landlord pro tip on Gen Z renters and technology

Technology for landlords often includes online payment options and a mobile app for renters to submit maintenance requests. With95% of the Gen Z population owning a smartphone, you can assume they will use this device to communicate and pay their bills when possible.

These convenient digital tools can increase renter satisfaction with your Gen Z tenants and provide you with the additional benefits of the technology.

Gen Z Renters and Sustainability Initiatives

Gen Z is renowned for its commitment to environmental sustainability. Landlords can attract and retain Gen Z renters by incorporating eco-friendly features into their properties. This may include energy-efficient appliances, sustainable building materials, and recycling programs.

According to GoBankingRates, the majority of Gen Z adults plan on buying an electric vehicle in the next five years. You might considerproviding EV charging stationsor offering to cover the cost of a Tesla charger in a single-family home for residents who drive an electric vehicle or Tesla.

By aligning with Gen Z’s values, landlords not only contribute to a healthier planet but also position their properties as attractive choices for environmentally conscious renters.

Landlord pro tip on Gen Z renters and sustainability

Some jurisdictions arerequiring landlords and owners of commercial properties to implement green initiatives. While most of these laws apply to big cities, it’s natural to think more widespread green requirements are in our future. By thinking ahead and planning for green initiatives now, you can highlight your sustainability efforts in order to meet any current or future laws while also appealing to your Gen Z renters.

Gen Z Renters and Social Engagement

Gen Z is known for its strongsense of community and desire for social interaction. Landlords can create a sense of community within their properties by designing common areas that foster socialization.

Incorporating shared spaces like lounges, co-working areas, and communal gardens can enhance the overall living experience for Gen Z renters. Additionally, organizing community events or initiatives that promote social responsibility and inclusivity can further resonate with this socially conscious generation.

Landlord pro tip on Gen Z renters and social engagement

Multifamily housingcommunities naturally lend themselves to creating social space and opportunities for social interaction, but what about owners of single-family homes?

Landlords who own or manage single-family homes can appeal to Gen Z’s social desires by marketing the property’s walkability or proximity to the community’s social locations, like restaurants, parks, and activities. As a landlord, you can also provide a newsletter highlighting local events and fun places to visit. This can be especially helpful to renters who have relocated to your property from out of town.

Gen Z Renters and Transparency and Open Communication

Clear communication is crucial for building trust with Gen Z renters. Landlords should be upfront about property details,terms of the lease, and any potential issues. Utilizing open and honest communication channels, such as regular newsletters or community forums, can help foster a positive landlord-tenant relationship. Responsive customer service through various communication channels, including social media, aligns with Gen Z’s preference for quick and efficient interactions.

Landlord pro tip on Gen Z renters and communication

While it’s natural to expect Gen Z renters to prefer digital communication options like text and email, given their relationship to smartphones and technology, a study by Stanford researchers found that the majority of Gen Z individuals value in-person communication. So, while you should offer text, email, and mobile communication solutions to your renters, make sure you are also available for in-person meetings and phone calls to truly build a connection with your Gen Z renters.

Final Thoughts

In adapting to the evolving rental landscape, landlords must recognize the unique characteristics and preferences of Gen Z renters. Embracing technology, incorporating sustainability initiatives, offering flexible lease options, fostering community engagement, and maintaining transparent communication are essential strategies for creating rental experiences that resonate with Gen Z.

By proactively embracing these approaches, landlords can position their properties as desirable choices for the next generation of renters, ensuring long-term success in the competitive real estate market.

This article is presented by Rentec Direct

Most Customer-Friendly Landlord Software that gives all the features you need to manage a growing portfolio. Includes full accounting, free ACH rent payments, and unlimited US-based support from an award-winning customer service team so you never feel lost.

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.

Embracing Gen Z Renters Is the Next Big Opportunity for Investors - BTN Realty (2024)