What are Gen Z Looking for in Housing and How Can You Appeal to this Demographic?
When Business Insider magazine published an article titled, ‘Gen Z is coming for the housing market,’ it raised questions. Namely, who is Gen Z, and what housing, exactly, are they looking for?
The National Apartment Association (NAA) explains: ‘Generation Z covers those born between 1996 and 2012.’ This is the most recent generation to reach adulthood and take their first steps into the world of housing, whether that be renting, homeownership, or securing property for a passive income investment.
Multi-Housing News points out that, ‘With the oldest of Gen Zs entering their prime renting years, it’s crucial for multifamily operators to know the preferences of the newest generation of renters and homeowners.’ And as, ‘Mintel’s data shows that there are approx. 10 million Gen Z’s in the UK, which accounts for around 15% of the population,’ this is a large pool of consumers that you don’t want to miss out on.
So, what is this new pool of customers looking for from housing providers, and how can you make sure you appeal to the new generation of home users?
What Makes Gen Z Different from Previous Home Users?
Although the generation before Gen Z, the Millennials, are fluent in the language of technology and the internet, this was not a part of their lives in their early years, like it has been for Gen Z. And the presence of this technology has had a large influence on the behaviour and outlook of this ‘coming-of-age’ generation.
‘The first generation born in an internet-reliant world, this generation is characterized as tech-savvy, goal-oriented, and values-driven,’ says NAA. A finding that would not surprise many.
However, these ‘values’ are not as straightforward as we might imagine. Research carried out by Mintel shows that although often portrayed as the most socially and environmentally-conscious generation, which might be true when comparing them to other generations, this isn’t actually the top priority for Gen Z. ‘Improving appearance, travelling abroad, and pursuing hobbies all rank higher in priority than acting sustainably,’ found Mintel.
This is also the generation who has grown up with social media, and the idea of having an online presence. The desire to improve appearance and travel abroad could very well be linked to the upkeep of an online persona to share with the outside world.
And this aura of perfection has filtered down into shopping habits, whether it be fashion or home furnishings, hairstyles or homes.
How Do Gen Z Want to Source their Housing?
Gen Z have a strong online presence and they look for that in the companies they buy from. ‘With nearly 40% of 18- to 24-year-olds using social media as a search engine, according to Google, Gen Z is also more likely to use social media for rental information,’ says NAA.
Although the idea of looking for a new home on social media would have been unthinkable a decade ago, when it comes to Gen Z, ‘They prefer video content, especially short snippets. If you don’t have a presence on platforms such as Instagram, TikTok, and Snapchat, you may be missing out on attracting this demographic,’ explains NAA.
They go on to advise that, ‘One in four Gen Zers report spending over five hours a day on their phones, so it’s no surprise they’re looking for mobile-friendly content. Design your website for mobile first, and advertise on internet listing services that offer mobile apps and mobile-responsive websites.’ And as time goes on, and the younger generation become the larger pool of renters and homebuyers, this is an update to your marketing that will only become more and more necessary.
Multi-Housing News also reveals that, ‘Google ranked 12 percent higher than apartment listing sites for how these renters look. So having a good website with strong SEO is paramount. Also important, then, is having videos and images of current units that are available to rent.’ Whether this might lead to the end of the house listing platforms in future is an (interesting) conversation for another day.
The main takeaway for today is that for housing providers to attract the next generation of residents, they need to ramp up their online presence and make sure they’re always thinking with smartphones in mind. But what should they be marketing to Gen Z, to get their attention?
What Do Gen Z Want from Housing?
1. Renting or Homeownership?
However, a preference for renting isn’t necessarily the reason behind the large portion of this cohort staying away from homeownership. According to ABC Finance: ‘2018 saw a lot of coverage aimed at ‘generation rent’, implying that younger people were content to stay in rented accommodation with no ambition towards buying. The truth is that many don’t have the means to save for a deposit.’
According to Freddie Mac, their survey found that, ‘Gen Z has strong, positive views of homeownership, and the overwhelming majority (86%) want to own a home someday. Gen Z does, however, see the following as obstacles to homeownership: home prices (92%), saving for a down payment (82%) and unstable job or job change (68%).’
In the meantime, ‘Gen Z acknowledges the positive aspects of renting, such as having flexibility over where to live (68%), lower stress than owning a home (63%) and affordable proximity to a medium or large city and the ‘action’ associated with urban living (62%),’ explains Freddie Mac. This ties in to the earlier observation about Gen Z's desire to travel, with renting affording them the flexibility of exploring the world, free of attachments.
So, it seems that although Gen Z do want to own their own homes, they are probably most likely to be looking for rented accommodation at this moment in time. ‘Of note, more than one-quarter of respondents think that owning a home at any point in their life seems out of reach financially,’ Freddie Mac sadly revealed.
Unaffordable house prices are undoubtedly the catalyst for this feeling, which is an ongoing battle that needs to be addressed by the government. However, Gen Z’s financial priorities might also play a part. As we have learnt, personal appearance, travel and hobbies rank high in importance for Gen Zers. Travelling abroad is expensive, and so is maintaining an online presence if it means buying new items to accentuate a lifestyle on social media. The emphasis for spending, therefore, for this generation, might be steered towards short-term wins on social media rather than long-term gains, putting the ability to save for a deposit even further out of reach.
Even so, to see no opportunity for homeownership is not a particularly uplifting prospect for Gen Z - but most certainly food for thought for housing providers. So, what do they look for in their rented accommodation, and how can you ensure you advertise these features correctly?
2. Desirable Features of the Property
Considering what we have so far learnt about the prevalence of Gen Z’s time online, it comes as no surprise that, ‘94 percent of Gen Zs—a generation that has no recollection of the world without the internet—consider internet connections inside the apartment a significant factor when shopping for a place to live,’ according to Multi-Housing News. This is so important to them that, as Multi-Housing News reports, ‘Gen Z ranks high-speed internet as the number one amenity they look for, beating fitness centers, parking and laundry.’ And the preference for technology goes further than their phones and laptops: ‘Gen Z expects technology such as smart locks—and, surprisingly, they ranked it twice as high as Millennials did in terms of importance,’ adds Multi-Housing News.
Also noteworthy is that, ‘Gen Z’s focus on social media also changes their apartment expectations. Make sure your community is Instagram-worthy with new décor, fashionable plants, and a splash of personality,’ says NAA.
‘Beyond technology, Gen Z is motivated by authentic experiences and personal recommendations,’ explains NAA. And Multi-Housing News goes further, saying, ‘Apartment reviews are the top way that Gen Z renters research apartments, so make sure your renters are leaving you good reviews! Go on and ask your current residents for reviews, but, be warned—if your resident has a mediocre experience at the community, they probably won’t leave a review, even if you request one.’
So, to tap into the Gen Z market, use cutting-edge technology to market homes that benefit from cutting-edge technology. And make sure they are looking top notch in their photos and video footage, peppered with fantastic reviews, while advertising their facilities and the amenities close by.
What do Gen Z Expect from their Home Providers?
Now you have the homes and marketing of those homes ready for your up-coming wave of Gen Z customers, what are they expecting from you and how can you make a lasting, positive impression?
Although we have already found that sustainability is not top of the list of priorities for Gen Z, it is still significant and will be an important component in your ability to secure customers from this demographic. NAA explain that, ‘Over half of this generation is drawn to socially conscious brands, according to MNI Targeted Media. Highlight your brand values, contributions to the local community, and sustainability practices.’
Another great way to secure your reputation as a conscientious housing provider, further than promoting your ESG credentials as a business, is to help your home users to live more sustainably in their new homes. Supplying Sustainability and Community Guides allows you to do exactly that. These helpful documents provide all the information your tenants need to live sustainably in their new home, as well as suggesting small lifestyle changes that can be made, to reduce household bills and make environmentally-conscious decisions.
And as social media is so important for this demographic, consider helping with an Insta-worthy move-in day photo for your Gen Z customers to post, by providing an Eco Lifestyle Welcome Gift, which will also do wonders for your online followers and reputation.
Finally, but arguably most importantly, Gen Z are ‘Looking for the latest digital solutions for everything from touring the unit to paying rent and reserving the community clubhouse. Highlight your digital tools, including smart tech,’ suggests NAA. With everything available to them at the tap of a button since the moment they were old enough to scroll, you need to be offering a similar solution with your housing.
The preference for digital bookings, payments and admin tasks is also appealing to other demographics, so your investment into a PropTech solution that helps you provide this service will be money well spent.
Our Spaciable Living app enables your home users to perform all of the administrative tasks associated with living in the home at the tap of a button, including bookings, payments, key and parcel management, visitor access and sourcing information. This integral part of Gen Z tenant satisfaction will help you secure those all-important positive reviews, thus attracting even more customers from this growing demographic.
And don’t forget to advertise your PropTech offering and how it will enhance life on your developments, with some extra photos and videos for Gen Zers to enjoy on TikTok, SnapChat and Instagram.
