Anyone born from 1997 onward is considered to be a part of the so-called Generation Z. As Millenials, their predecessors, already transitioned from renters into homeowners, it’s time that the industry prepares for the next generation.
Gen Zers are different. The primary aspect that distinguishes them from the previous generation is their relationship with technology. When it comes to the purchases and even some life decisions that they make, in many cases, they’re under a strong influence of various social media. They know how to use it as leverage to find the information that they need. Gen Z renters are tech-savvy, living in a fast-paced world – if they want to rent, they look for informative, optimized websites that load quickly.
They are the kids of the Great Recession, meaning many of them watched their parents struggle to make ends meet. The lower price point often attracts them the most – they’ll take affordability over amenities to save money for a bigger purpose: the goal of owning a home in the future. Many of them prefer stability, so instead of relocating for work, they take offers that provide opportunities to work from home.
Continue reading to learn more about Generation Z and their tendencies in the always busy housing market.
The Want-to-Be Homeowners With the Lower Budget
When talking about Generation Z, it’s impossible not to mention the Great Recession of 2008. While many people were already struggling to make ends meet, this generation was born into a world filled with economic uncertainty. They witnessed how their parents struggled with unemployment and barely making the bills, so they’re more cautious with their purchases.
They want to avoid debt, and they’re cautious about keeping a great credit score (you can get your free credit score here.) Being the tech-savvy generation, they look for smart products that are easy to use. This is why they prefer apartment rentals that are tech-friendly and affordable. If you can customize your website to be mobile-friendly, this will help you gain the attention of these renters.
They value affordability over all other factors, and that’s because they want to save money for buying a house in the future. Millennials are already starting to buy homes, so it’s time that the industry prepares for the next wave of potential homeowners – Gen Zers.
A Home Is More Than Just a Place To Live
Gen Z sees it as an investment. When they move out of their family homes, they want their own places. Gen Z wants to live in communities as opposed to just renting properties. They tend to care about where they live and what they live next to – if it happens to be a bunch of other Gen Z renters, so be it. They love the diversity and the opportunity to meet new people and share ideas and experiences with them. Gen Z is all about interactions and community, and this is exactly what most rental communities offer them – a chance to build connections with others by living nearby.
Purchasing Power
Although their total spending doesn’t match that of the Millenials, Gen Zers are still a force to be reckoned with. Lots of them have already started saving for a downpayment to buy a home. As far as the housing market goes, they are looking to rent first, then buy – this is where the industry needs to pay attention to.
According to recent data, 82 percent of Gen Z renters think homeownership is the single most important event in the life of an average American. Another 57 percent are quite sure that they’ll own a home of their own in the future.
Lower Price Points, More Stability
Gen Z renters are looking to spend less on their future homes. They’re looking to spend less on everything – from phones to cars. They’re willing to compromise on the amenities just to have a place to call their own.
However, there is a significant difference between those who want to live in a city and those who prefer a suburban or rural location. The former group is willing to spend more on rent, but they promise to stay put for longer. As for the latter – those who prefer a quiet life far from the city’s noise – they’re not as willing to pay higher prices, but they still expect a certain level of comfort.
Conclusion
As Millennials take on homeownership, Gen Zers are already looking to become the next generation of renters. The industry needs to pay attention to their preferences, wants, and demands in order to cater to them. Gen Zers are tech-savvy, community-oriented, and they want to live in style without feeling the pinch. If you’re able to meet their needs while staying within your budget, you’ll be one step ahead of the competition.
As for Gen Zers themselves, they’re all looking forward to becoming homeowners in the future – the only question is when exactly that will happen.
