The more we explore real estate trends expected in 2024, we'll find many different perspectives. One notable trend is the growing number of millennials buying homes. This is likely due to their maturing life stages and improved financial stability. Experts project that, keeping in view the track record, next year there will be up to 34% of millennials, a generation-spanning from the early 1980s to the mid-1990s and comprising around 70 million individuals, will become homeowners. They have already surpassed baby boomers and now they are America’s largest generation.

As millennials enter the homebuying market in droves, real estate agents and marketers must adapt to this new demographic. To be effective, they must understand the concerns of millennials, address them, and identify the factors that will motivate them to buy a home. Millennials are known for seeking information through peer recommendations and online resources, and they have a "recession mindset" that shapes their spending habits. Real estate agents who understand these unique attributes will be best positioned to succeed in this new market.

Gen Z's Path to Maturity: What We've Learned So Far

In the 2020 election, Generation Z, the demographic born after 1996, made up one in ten eligible voters. The oldest members of this generation turned 23 in 2020, and approximately 24 million Gen Z individuals cast their votes. As more Gen Zers reach voting age, their political influence is poised to grow steadily.

Gen Z stands apart from Millennials, who came of age during the Great Recession. Unlike Millennials, Gen Z was initially set to inherit a strong economy with record-low unemployment. However, the COVID-19 pandemic has dramatically altered the social, political, and economic landscape. Instead of embarking on a future filled with opportunities, Gen Z now faces an uncertain and unpredictable path.

The oldest members of Gen Z have borne a disproportionate burden during the initial phases of the coronavirus crisis. A March 2020 Pew Research Center survey found that half of the oldest Gen Z individuals (ages 18 to 23) reported job losses or wage reductions within their households due to the pandemic. This percentage was significantly higher than that of Millennials (40%), Gen Xers (36%), and Baby Boomers (25%). Additionally, an analysis of employment data showed that young workers were at an increased risk of job loss even before the pandemic, as they were disproportionately employed in high-risk service sector industries.

Aside from the unique set of circumstances in which Gen Z is approaching adulthood, what do we know about this new generation? We know it’s different from previous generations in some important ways, but similar in many ways to the Millennial generation that came before it. Members of Gen Z are more racially and ethnically diverse than any previous generation, and they are on track to be the most well-educated generation yet. They are also digital natives who have little or no memory of the world as it existed before smartphones.

Landlords and their Adaptation to the Gen Z Wave

As a landlord or property owner/manager, it's essential to establish a foundational understanding of the factors motivating these teenagers and young adults. This knowledge will help you prepare for your upcoming group of tenants.

Social Media Consumption Perspective

Applying the strategies that have worked for millennials won't cut it for the emerging Generation Z. Gen Z has carved its own path when it comes to media consumption, favoring unique social media platforms and substantially decreasing traditional TV viewing. If you're in the business of marketing rental properties, adapting to this new landscape is vital. Engaging with Gen Z requires meeting them on their digital turf, primarily through online video content rather than traditional television ads. Your messages should be concise, easily digestible, and shareable, as this generation thrives on peer interaction and values personal connections just as much as online information when making housing decisions.

Active Engagement 

From crafting vlogs to establishing their own video channels, Gen Z has been equipped with the necessary tools to express their creativity on a significant scale right from the beginning. This inclination towards participation and creation is a fundamental aspect of their identity, and it's reasonable to expect that this inclination will extend to other aspects of their lives as they step into adulthood. For property owners of rental complexes, it's worth contemplating amenities that foster a sense of community and encourage collective culture-building. Consider initiatives such as group art projects, community events, and contests, as these are likely to resonate with this generation's co-creative spirit.

Tech Reliance

As digital natives, they have grown up in a world where constant and immediate connectivity is the norm. They expect seamless access to every facet of life through their smartphones. Consequently, if you are a landlord or investment property owner, it's imperative to carefully consider how you engage with your tenants. They will insist on electronic means for routine tenant activities such as rent payments, maintenance requests, basic communication with the landlord, and accessing services like securing renters’ insurance.

Financially Cautious

A recent survey by Business Insider has revealed that, despite their youth, a significant portion of this generation already considers economic challenges and debt to be among their foremost concerns. Growing up in the midst of a global economic crisis and in the wake of the relatively financially strained millennial generation has instilled a sense of financial unease in them. Consequently, they are likely to prioritize affordability over added square footage or superfluous amenities.

An investigation by Business Insider underscores that a considerable segment of this generation, despite their youth, has positioned economic challenges and debt at the forefront of their concerns. Having come of age during a global economic crisis and witnessing the financial strain experienced by the millennial generation, they have developed a heightened financial consciousness. Consequently, their preferences tend to lean toward prioritizing affordability over additional living space or extravagant amenities.

Conclusion

The real estate landscape in 2024 is being shaped by the increasing number of millennials becoming homeowners and the emergence of Generation Z as renters. To succeed in this evolving market, real estate professionals must adapt their strategies to cater to the unique preferences and concerns of each generation. This includes leveraging digital platforms, fostering community engagement, and prioritizing affordability. Understanding these generational dynamics will be essential for success in the ever-changing real estate industry.