As young people increasingly enter the rental market, it is important to understand what they look for. Learn about the Gen Z housing market, young renters, and how to appeal to this generation of tenants.
As a landlord, many of your tenants will be significantly younger than you, and often in different stages of life. Generation Z is set to make up the majority of renters by 2030, so understanding their preferences and preparing for the influx of young renters can help keep your properties competitive in both current and future markets.
As a renter and a member of Gen Z myself, I have observed firsthand the differences between my priorities in a rental and those of my older family members and friends.
Young renters have different priorities from older generations. They look for a variety of elements in their housing, which you should consider accommodating as a landlord. As an added benefit, many of these luxuries will be appreciated by older renters as well. Discover the perks that young renters are looking for.
Pet-Friendly Policies
Generation Z is the most likely generation to own multiple pets, and they are also the most likely to spoil their furry friends. As more of this generation becomes independent of their parents, it can be expected that pet-owning renters will become more commonplace, leading to a significant increase in the need for related policies.
Additionally, Gen Z and other younger generations are becoming more likely to have pets than children. According to a study by the Urban Institute, the 30-44 age range is the only one where it is statistically more likely for an individual to have children than pets. As such, particularly when it comes to young renters, pets will come up frequently. Implement a pet policy that works for your rental to appeal to renters and minimize the chance of pet-related problems.
Learn more: Pet Screening for Landlords and Renters
Flexible Living Arrangements
With 55% of Gen Z renters moving out of apartments within 12 months, it is an obvious conclusion that many of them would enjoy flexible leases. Due to this fondness for flexible living situations, making some changes to your lease agreements might attract more renters. Month-to-month leases or short lease terms could be just the thing your prospective tenants are looking for.
If you want to get tenants to stay for longer periods of time, consider adding some benefits to your rental that they would struggle to find elsewhere. Benefits such as pet-friendly policies, included Wi-Fi, new appliances, or other similar and much-loved amenities could keep tenants around longer. Gradually add these amenities to your rental and see how they improve your tenant turnover.
Learn more: What Landlords Should Know About Lease Renewals
Technology and Amenities
Smart homes, new furnishings, and other modern luxuries are a sure-fire way to attract renters, young and old. However, Gen Z renters in particular are known to seek out high-tech living situations. Young renters typically prefer online rent payments and work orders, as well as other easy, streamlined methods of managing their home.
In-unit laundry, community spaces, and the aforementioned wi-fi packages and advanced appliances are all amenities that young renters love. Air conditioning is another massive perk renters seek out. Finally, a generally clean, comfortable environment appeals to everyone, Gen Z included.
Learn more: Smart Home Technology for Landlords and Tenants
Location and Proximity to Commodities
As has been said many times, location is the one thing that can’t be changed. So, if you’re buying properties with the intention of renting them out, location is exceptionally important. Gen Z renters are a demographic that greatly appreciates being close to things they want and need, particularly their work, school, or favored hobbies.
Many renters prefer walkable locations, and studies claim that 92% of Gen Z renters surveyed said they would pay more in rent to live in a walkable area. Additionally, many members of Gen Z are college students or new to their careers, meaning that being able to walk to their jobs or otherwise minimize their commute expenses is ideal.
Why the Gen Z Housing Market is Unique
Every generation has its unique traits and qualities that make renters in differing age demographics unique. Millennials and younger members of Gen X, for example, are more likely to own electric vehicles than other demographics and may, as such, want a rental that has or is close to a charging station for them.
Gen Z specifically tends to prefer very modern accommodations. While older generations were content to make do without certain luxuries, such as air conditioning or in-unit laundry, these things are considered standard for Gen Z. Other similar differences boil down largely to young renters simply having different, more technology-focused expectations of their living arrangements than those who came before.
Final Thoughts
Convenience, flexibility, and easy enjoyment of a space are priorities for Gen Z renters. This demographic searches for community environments and technological enhancements to make their lives easier and more enjoyable. As such, if you want to appeal to these young renters, add some or all of these features to your rental. Keep up with the times and attract young people to your rentals with these benefits and features.
