What Gen Z Wants in a Multifamily Property

Gen Z. You know, that late 90s and early 2000s generation who fall somewhere between Gen Y and the Millennial. The Pew research center defines Generation Z as those born after 1996. Mathews & Co. says qualities shared by Gen Z’ers are a reliance on technology, a preference to save/cut costs, and wanting experiences over buying “things.” With over 60 million people in this age range representing over $140B in buying power, it’s time to think about what this generation wants as they enter a traditional multifamily property.

Targeting Gen Z means looking beyond the confines of traditional living or traditional brand targeting in order to capture their attention. To target Gen Z, you need to get a little creative and cultivate relationships with youth culture while creating a sense of community.

Nat Kunes, Vice President of product at property management software company, AppFolio, says that Generation Z is “…looking for a sense of community and an experience… that means branding through some sort of amenity programming, like pool parties or movies.” They’re also “motivated by personalization… property managers are creating personalized offers, like free memberships at nearby fitness studios… or free dog walking services for those with pets.”

Jay Pearlman, The Scion Group Senior Vice President of Advisory Services, says the generation is “…typically a lot more risk-averse when it comes to finances and is less likely to spend the money on the luxury properties… therefore, they will trade off larger floor plans or luxury amenities in exchange for a more affordable residential experience.” 

Some of the most sought-after amenities by Gen Z are high-speed technology, package lockers, cold-storage lockers, rooftop areas for socializing and relaxing, and curated clubhouse and fitness center experiences.

With an expansion in remote work, bringing in the amenity of a co-working space might be a wise idea. Yoga, happy hours, coffee areas, organized trips to local bowling alleys, and other community-building activities could keep Generation Z members happy and also help with retention. Residents with one friend in the community are 75% more likely to renew. Those with two friends are 90% more likely.

For Generation Z, being in touch with technology is 24/7. Some new technologies in multifamily facilities could include smart thermostats, electric car charging stations, or package lockers where packages can be stored and not stolen. Many property managers are now including an Amazon Alexa device in units, some taking the added step of offering the ability through Alexa to pay rent or file maintenance requests.

Marketing to this group directly often leads to social media.  Many multifamily owners who are reaching out to Gen Z renters are doing so through Snapchat and Instagram. But this group is less inclined to believe the marketing that you put out and more inclined to believe the word of their peers, so offering incentives to existing renters with a broad social media footprint or even courting new social media influencers and celebrities to rent can be very effective, with studies finding that Gen Z’ers are swayed by them even more so than millennials. 

Gen Z’ers also tend to cook less, causing some developers to not include ovens in their units. With grocery and food delivery catching on, many owners and developers will now include a separate drop-off area for ride-share pickup and food delivery drop-off into their planning. 

Sense of Community. Use of technology. Lower prices, fewer in-unit amenities. Just a few of the qualities members of Generation Z are looking for as they move into the renting world.  

Are you exploring ways to make your commercial investment more appealing to a younger target audience? Let’s look at the data surrounding your investment to inform your strategy. We are here to help.