Renting to different demographics brings completely different challenges. While most landlords already know what to expect from millennial renters, there is still no accurate description of an average Gen Z tenant and their renting preferences. It’s a general assumption that they prefer affordable housing rather than industry-leading amenities. But the 2020 crisis has reshaped the rental market and the whole picture might have drastically changed.
Despite the shift, property managers have come up with a few marketing approaches that work perfectly with the newest generation and result in attracting more Gen Z renters.
In this article, we’ll cover the renting habits of Generation Z, provide the latest data on their life as tenants, and shed light on their plans for homeownership.
Who are they?
Born after 1996, Gen Z are known as tech-savvy young people with big ambitions and a new mindset focusing primarily on the practical side of the world. They tend to be financially independent, consider jobs with flexible schedules (the 9-5 work routine is not their cup of tea), and enjoy in person interactions but communicate mostly online. Gen Zers are digital fluent- they can hardly imagine a single day without scrolling through Instagram, except for during a digital detox. But that’s a different story.
This demographic has an excess of information and quality education. Unlike the previous generation and due to their competitiveness, Generation Z is more likely to be enrolled in college and get a higher education in the world’s most prestigious institutions.
Growing up in a digital environment, they are used to viewing the world from different angles and look for the answers on the web. So, if you were planning to advertise your vacant rental in a newspaper don’t expect a lot of Gen Zers to apply for it. Regardless of the fact that they prefer reading printed books more than their Millennial counterparts, Gen Zers are a digital-oriented demographic group.
Any renting preferences?
As mentioned above, Generation Z had gone digital before it became a trend. That means landlords should be very careful when marketing to the newest generation of renters.
When it comes to property amenities, in-unit laundry and air conditioning are the most important amenities for Gen Z tenants. For many Gen Zers, an apartment often serves as a home office, meaning they need a functional and practical place rather than a luxury apartment with expensive furniture.
Along with that, you as a landlord should create favorable housing conditions and provide positive renting experience by offering online rental applications and leasing procedures that can be done online, as well as online payments and maintenance management. Luckily, property management systems like TenantCloud provide quick and convenient solutions designed to save time and increase tenant satisfaction.
According to a recent survey conducted by TenantCloud, about 50% of Gen Z tenants spend 10-40% of their income to pay for rent. In general, American Gen Z will most likely spend about $226,000 on rent before buying a place of their own. But 22% of respondents would like to stop renting as soon as possible and become homeowners shortly after.
While they are likely to either move back in with their parents or look for a roommate to rent an apartment, almost 45% of our Gen Z respondents don’t share a rental with anyone else as they appreciate privacy and would better spend a higher percentage of their income on rent payments.
Proven facts about Gen Z tenants
We conducted a survey and asked TenantCloud Gen Z users about their renting experience.
Here’s what we know: