As the rental landscape evolves, a transformative shift is taking place, leading to a fresh wave of renters who belong to Generation Z. With the oldest members of this group successfully completing their college education, making their entry into the workforce, and embracing the rental market, the time has come to pivot our attention to a new era. For property developers, owners, and managers, catering to this rising generation is not only a challenge but also an unprecedented opportunity.

The dynamics that once primarily encompassed Baby Boomers and millennials are undergoing a transition. The baton is now being passed to Gen Z, the latest demographic poised to redefine the landscape of multifamily living. To stay relevant and competitive, it's imperative to explore the distinctive characteristics, preferences, and values of Gen Z renters, and to shape your property development, management, and marketing strategies accordingly. Join us on this journey as we delve into the realm of Gen Z renters, uncovering what appeals to them and how you can meet their evolving demands in the rental market.

Gen Z's Unique Demands

Gen Z, born between 1997 and 2012, is the first cohort to grow up immersed in the world of social media and smartphones. As a result, they have emerged as a significant and increasingly influential demographic within the multifamily resident population. Their presence is so impactful that, by 2030, Gen Z is projected to supersede millennials as the most extensive group of renters in the multifamily market.

Already, Gen Zers are making their mark, accounting for more than a quarter of lease applications nationwide. To thrive in the multifamily industry, it is imperative for communities to not only acknowledge but also deeply comprehend the distinctive preferences and needs of this burgeoning generation. Gen Z's unique characteristics and demands hold the key to success, making it essential for the multifamily housing sector to adapt to their evolving requirements.

Is money enough to attract Gen Z?

Attracting Gen Z talent goes beyond traditional compensation methods. Organizations aiming to expand their Gen Z workforce must consider factors beyond salary and benefits. The oldest Gen Z members were merely 10 years old when the inaugural iPhone graced the world in 2007. These "digital natives" barely recall a time when there wasn't "an app for that." Surprisingly, a  95 percent of them possess smartphones, perpetually connected for around 10 hours daily.

Texting is their preferred mode of communication, with each Gen Zer sending an average of 3,000 text messages per month. Interestingly, over 88 percent favor texting over phone calls, and 81 percent experience phone call-induced anxiety. This generation showcases a remarkable penchant for self-improvement, with 85 percent acquiring a new skill from YouTube every week, dedicating two hours daily to the video-sharing platform.

The pressing question for multifamily property owners and operators is whether their leasing qualification criteria can keep pace with the evolving Gen Z landscape?.

Given Gen Z's inextricable link to technology, early adoption of robust tech solutions in the multifamily sector is poised to provide not only a competitive edge over the next three years but also a precursor to shaping the industry's new standard. As the digital pioneers of our age, Gen Z is ushering in a transformative era for the multifamily industry, where technological innovations and adaptability are paramount.

Some Distinctive Characteristics

While elements like a healthy work environment, a positive corporate culture, and mission-driven company values resonate with Gen Z, this generation has distinctive preferences and motivators, including:

• Consumer-Grade Technology Expectations: Gen Z, often referred to as the gamer generation, anticipates a robust digital work experience. They seek workplace technology that seamlessly integrates with their workflow, offering a user-friendly experience. They are proficient at adopting new technologies but have high expectations for a consumer-grade tech experience, ideally provided during onboarding.

• Flexibility in Work Arrangements: Growing up in the digital age, Gen Z believes work can be accomplished from anywhere. While remote work is appealing to many, they also value in-person interactions, such as engaging with customers, connecting with mentors, and building relationships with colleagues.

• Emphasis on Mental Health and Well-Being: Gen Z experiences higher stress levels compared to other generations. Prioritizing mental, emotional, and physical well-being is a critical motivator for them. Addressing burnout and promoting work-life balance is essential for retaining Gen Z talent.

• Alignment with Values: Gen Z looks for employers that align with their personal values, such as making a positive impact on the world. They seek organizations that address diversity and inclusion, equal pay, environmental sustainability, work-life balance, and protection from workplace harassment, focusing on accountability, systemic change, and measurable results.

• Cognitive Diversity: Diversity and inclusion, especially in terms of various perspectives and points of view, is highly valued by Gen Z. They believe this cognitive diversity drives innovation, creativity, and problem-solving.

• Financial Transparency and Support: Gen Z expects fair compensation and transparency from employers regarding pay and promotion decisions. They are motivated by benefits that enhance their financial security, such as tuition reimbursement, 401(k) matching, and student loan repayment.

• Feedback, Coaching, and Mentoring: Gen Z employees seek strong coaching and mentoring while emphasizing personal success over team success. They value timely, direct, and frequent feedback and prefer multiple feedback opportunities each week.

• Emphasis on Learning and Skill Development: Learning and skill development are crucial to Gen Z's career success. They prioritize hard skills and seek opportunities for online learning and on-the-job skill development. Organizations should consider their training methods to develop critical soft skills like in-person communication and interpersonal dynamics.

Some most Demanded Amenities from Gen Z

High Speed Internet

Gen Z renters hold high-speed internet in the highest regard among all amenities, surpassing priorities like parking, gyms, and laundry facilities. They are a generation deeply rooted in internet usage, with a significant portion dedicating over four hours daily to online activities. This reliance on the web is further underscored by their desire for immediate WiFi access upon moving in, mirroring their expectations for technology services akin to their experiences with platforms like Amazon Prime. Gen Zers, known for their technological acumen and high-tech familiarity, place an unparalleled emphasis on internet connectivity, making it the most effective way to demonstrate a perfect alignment with their tech-centric lifestyle. The inclusion of free high-speed internet, or its incorporation into the rent package, conveys a compelling message to Gen Z renters that your property is well-suited to their digital-driven way of life.

Elevating Your Property's Appeal with Outdoor Amenities for Gen Z Renters

In the wake of 2020, when lockdowns confined everyone indoors, a collective yearning for the great outdoors and green spaces has swept across the population, including the dynamic Gen Z cohort.

Incorporating outdoor amenities into your property not only enhances its overall value but also fulfills the growing demand for green expanses among your residents. Generation Z, in particular, places a significant emphasis on community living, and outdoor spaces serve as ideal hubs for gatherings and social interactions.

Consider the inclusion of various outdoor amenities, such as a community garden, a rooftop terrace with panoramic views, an outdoor kitchen equipped with grills and inviting dining areas, and a community dog park. These additions not only elevate the appeal of your property but also cater to the desires of Gen Z renters seeking a harmonious blend of nature and community in their living spaces.

Smart Homes

Smart home technology is of paramount importance to Gen Z renters, with a resounding 62% considering it a top priority in their search for a new apartment, as highlighted by a Rent Cafe survey. Interestingly, smart locks and thermostats have even eclipsed the significance of having an extra bedroom. Being digital natives, Gen Zers exhibit a remarkable aptitude for leveraging technology to simplify their lives. They revel in the convenience of remotely controlling thermostats and lighting or effortlessly granting access to their smart locks, all aligning seamlessly with their tech-driven lifestyle. 

Furthermore, this tech-savvy generation places a premium on property technology, notably high-speed internet. The integration of smart home features, like smart locks and thermostats, serves as the technological prowess that perfectly caters to the preferences of Gen Z residents, elevating their experience through heightened convenience and harmonious alignment with their lifestyle. To truly captivate Gen Z renters, the unification of various smart systems under one umbrella is key. Seek integrated solutions and invest in a cohesive mobile app platform to deliver an unparalleled technological experience that resonates with this generation.

Gen Z's Coworking Space Craze 

While a significant portion of Generation Z has yet to embark on their professional journeys, the most senior Gen Z members have already made their presence felt in the workforce. Recent college graduates at a time when remote work has become the new standard, many Gen Z renters are expected to embrace a work-from-home lifestyle. Hence, it comes as no surprise that coworking spaces rank high among the desired amenities for this upcoming generation of apartment residents. For instance, you can reconfigure a community lounge by replacing sofas with desks or enhancing lounge chairs with tablet arms, ensuring that your property caters to the evolving work preferences of Gen Z renters.

Pet-Friendly Policies 

Many Gen Z pet owners adopted their pet at the height of the pandemic, and surveys show that they are more likely to think of their pets as their “children” than any other generation (33%). They are also more likely to celebrate their pet’s birthdays (81%) and dress their pets up for festive occasions (43%). Pet-friendly policies are important for Gen Zers. As one Gen Z renter affirmed in an article in the Indianapolis Business Journal, “I wouldn’t leave my kid behind if I moved, so why would I do that to my dog?” Pet-friendly policies and amenities like dog runs and pet washes are a great way for properties to win Gen Zers’ hearts. In fact, a recent Pet Inclusive Housing Initiative report showed that residents in pet-friendly housing stayed 21% longer.

Gen Z Demographic 

In contrast to millennials, who came of age in the aftermath of the 2008 recession, Gen Z began their journey into adulthood during an economic upswing marked by low unemployment. However, the COVID-19 pandemic significantly disrupted this optimism, reshaping Gen Z's outlook on the future. Like their predecessors, this generation now places a premium on security and convenience.

Here are key insights into Gen Z:

• Digital Natives: Gen Z has grown up in an era of advanced technology, with smartphones, laptops, and devices being integral to their lives. Many have little to no memory of a world without these gadgets.
• Diversity Matters: Gen Z stands out as the most racially and ethnically diverse generation in the United States, reflecting a rich tapestry of backgrounds and perspectives.
• Education Focus: This generation places a strong emphasis on education. Gen Z is more likely to graduate from high school and enroll in college compared to millennials and Gen Xers at a similar age.
• Tech-Driven Social Media: A staggering 89% of Gen Z individuals report using the internet almost constantly or several times a day. They have a particular affinity for platforms like TikTok, YouTube, and Instagram.

Mastering Multifamily Marketing for Gen Z Renters

Gen Z's lifestyle preferences are at the forefront of transformative changes in multifamily development. However, what do these shifts imply for multifamily marketing? The answer is simple: understanding what matters most to Gen Z enables you to know how to captivate their attention, embodying a truly customer-centric approach.

Yet, it's crucial to recognize that merely grasping multifamily marketing trends is just the initial step. The most valuable insights into your target demographic will spring from the research you conduct independently. A powerful method for gleaning deeper insights about your market is through the creation of resident personas. For comprehensive guidance on crafting these personas, you can explore our blog.

By uncovering the priorities of prospective residents, you can not only understand how to entice them but also how to genuinely engage with them.

Conclusion

Adapting to the needs of Generation Z renters is crucial for success in the evolving rental landscape. Understanding their reliance on technology, emphasis on mental health, and desire for amenities like high-speed internet and outdoor spaces is key. By bringing these preferences and crafting targeted marketing strategies, multifamily properties can position themselves as attractive options for Gen Z renters, driving growth and innovation in the rental market.