Millennials and Gen Z are changing the rental market as we know it. They have different expectations for what they want in a rental, and this is affecting landlords and property managers nationwide. To stay ahead of the curve and maximize rental profit, it’s essential to adapt to these recent changes. In this blog post, we’ll discuss the critical differences between millennials and Gen Z regarding rentals, as well as some tips on how to cater to them.
Who Is Gen Z?
At this point, most people are pretty familiar with Millennials and their traits as consumers. But who is Gen Z?
Generation Z is the demographic cohort that follows Millennials. Born between 1996 and 2010, they have many similarities with Millennial renters. They’re both socially conscious, environmentally aware, and digitally connected.
Some surveys show that Gen Z young adults are more eager to buy homes than Millenials were several years ago. Despite that, Gen Z is on track to become the largest population of renters of multi-family developments, detached homes, and accessory dwelling units.
Sustainability Is a Selling Point
Sustainability is a top priority for Millenials and Gen Z. They’re both interested in reducing their carbon footprints and living more eco-friendly lives.
When it comes to rentals, this means that tenants are looking for properties that use sustainable materials, have energy-efficient appliances, and offer recycling programs. If your rental property isn’t up-to-date with these trends, now is the time to make some changes. You could start by advertising sustainability certifications or new renovations that promote eco-friendly lifestyles.
Fully Digital Housing Searches
Younger Millennials and almost all of Gen Z are digital natives. That means they’ve grown up with social media, smartphones, and tablets on hand at all times. As such, digital marketing strategies are the best ways to reach both generations.
Your rental listings should be easily accessible online to appeal to these renters. Ensure they’re optimized for search engines and that the listing photos are high quality. You might also want to consider using video tours to give potential tenants a better sense of what your rental property looks like.
Gen Z consumers have also contributed to the growth of influencer marketing. Influencer marketing is a type of social media marketing that uses endorsements and product recommendations from highly followed accounts. If you’re looking to reach the current generation of renters, consider working with influencers in your area.
Smart Technology Is Expected in Rentals
Millennials and Gen Z have grown up with technology and expect it to be a part of their daily lives. In fact, renters are willing to pay more for properties that include smart technology.
Some examples of smart technology that renters look for are:
- A smart thermostat
- Voice-activated lighting
- Keyless entry systems
- Wifi-enabled security systems
If you’re unsure where to start, consider adding a few simple features that can be controlled with a smartphone or tablet. This will allow your tenants to customize their living experience and make their lives easier.
The Build-to-Rent Market Must Grow To Accommodate Both
The demand for single-family rentals is higher now than ever before. Millennials are growing out of apartments but aren’t all ready to buy. Meanwhile, Gen Z prefers single-family rentals to multi-family housing. These trends are pressuring growth in the build-to-rent market.
The build-to-rent market is a relatively new development in the world of real estate. They’re often collections of single-family homes that share amenities and are overseen by a property management company. This type of development is appealing to both Millenials and Gen Z, as it offers a variety of single-family homes that can meet their unique needs. The build-to-rent market is still in its early stages, so there are many opportunities for investors and developers.
The More Things Change, The More Renting Stays the Same
Even though Millennials and Gen Z are changing the rental market, some things will always stay the same. Renters will continue to look for safe, affordable, and comfortable homes. They’ll also want properties that are close to work, public transportation, and other amenities. To appeal to the current generation of renters, it’s important to consider their unique values to stand out from your competition. If you’re looking for an edge with the youngest renters, these insights about Gen Z and Millenials are sure to help.