Millennials are transitioning renters to homeowners, and Generation Z renters are making their way to student housing properties. The student housing industry needs to prepare their network for the shift to the next generation of residents. In the post Gen Z Renters: What You Need to Know, author Dawn Macri explores the fundamental differences between these groups.
As millennials transition from renters into homeowners, the multi-family industry needs to prepare for the next generation of renters: Generation Z. Though often bucketed together with millennials, Gen Zers are different. The primary difference between these two generations is their relationship to technology. Gen Z relies more heavily on the internet and social media to make purchasing and lifestyle decisions than millennials. Whether it’s a group chat with family or a sponsored YouTube video, Gen Z knows how to leverage technology to find the information they need.
Along with being digital natives, Gen Zers make up almost one-quarter of the U.S. population. They are graduating college, or skipping it entirely, and hitting the rental scene. With 60% of Gen Z looking to rent, an estimated 44.4 million upcoming renters are on the hunt for their own apartment.
Who are Gen Z Renters?
They’re fluent in tech
Having grown up with the world just clicks away, Gen Zers are incredibly tech-savvy, global, and inclusive. They live in a fast-paced world of social media messaging and on-demand media. This innate connection to technology requires you to provide information about your properties online that’s easily accessible via their smartphones. To do so, make sure your website is informative, loads quickly, and is optimized for mobile use.
They are kids of the Great Recession
Unlike millennials, who entered the workforce during the Great Recession, Gen Z watched their parents struggle to make ends meet. Therefore, they are more frugal than their predecessors. This frugality affects everything from the brands they buy to the homes they choose, so offering units at lower price points will help you to attract more Gen Z renters.
They value individuality
Technology has also shaped Gen Z’s expectations of personalization. They can stream almost any show, movie, or song in seconds. Media platforms allow them to build their own channels and playlists, giving them control over what they see and hear. Show that you’re paying attention to who Gen Z renters are as individuals by including questionnaires on your website. You can stick with basic questions such as: “how do you want to be contacted?” or get more creative with a quiz that locates their ideal property based on the amenities they want most.
They’re entrepreneurial
Gen Zers are a highly creative group. Almost three-quarters of current high school students want to own their own business, while 76% want to turn current hobbies into full-time careers. To help them accomplish this, properties need to provide communal workspaces to allow for creativity and remote employees.
How are they different from millennials?
It might be tempting to target millennials and Gen Zers with the same tactics, but there are many differences between the two generations. When you start shifting your focus from marketing to millennials to marketing to Gen Z renters, keep the following generational differences in mind.
They expect more from technology
Gen Zers are true tech natives. Their immersion in technology far eclipses that of millennials, with apps and the internet guiding many Gen Zers’ decisions. Because of this, their expectations of technology are high, so make sure your property supports the fastest internet speeds available in your area. While updating your building’s internet, don’t forget to increase your website’s internet speed and step up your social media game to bring in more Gen Z renters.
They seek stability
While millennials are notorious for renting longer than previous generations, they also crave flexibility and are willing to uproot and move for the right job or a new neighborhood. Gen Zers, on the other hand, want stability. Their practicality makes them less willing to relocate than millennials. Rather than moving to their dream jobs, Gen Zers plan to build them right from their living room. To accommodate this, ensure your units have enough living space for a home-office, even if it simply consists of a desk, chair, and a few shelves.
If your network is having issues with maintaining the demands of millennials, it will undoubtedly have trouble supporting the technology needs of Gen Zers. Having a robust, wi-fi network with ample bandwidth available will be a necessity. Additionally, the expectation of endless entertainment options at their fingertips will be even higher so offering a quality streaming solution is also critical to your property’s success.
