What Gen Z Wants: A Homeowner’s Guide to the New Wave of Renters

Millennial renters have peaked. As this generation hits their 30s and 40s, Gen Z is now the only generation adding renter households to the market.

Learning what drives young adults is a smart play for rental homeowners of any age. As Generation Z (or Zoomers) enter the rental market, it’s time to look at this cohort’s wants and needs to determine what your home and marketing efforts need to keep demand high. 

Born between 1997 - 2012 (aged 12 - 27), the over 18’s of Gen Z are already renting and offer a glimpse at the future. According to Statistica, Zoomers accounted for ~22% of rental applicants in the US in 2020. By 2030, Gen Z will dominate the rental market as they make up all adults under 35.

Quick facts about Gen Z Renters

• They are the most tech savvy of any generation – even the oldest Gen Z’s were only 10 when the first iPhone launched.
  
  
• Gen Z adults don’t pick up the phone. Most have never written a check. The option to manage a rental home and accept payments online is becoming essential.
  
  
• Gen Z are often attracted to suburban living over big-city life, with many dreaming of a single-family rental home. A NAAHQ survey found that 43% of adults aged 18-23 were seeking to swap an apartment for a SFH after graduation.
  
  
• About two-thirds of adults under 35 live in rental homes. By 2030, Gen Z will be 18-35 and the majority of renters.
  
  
• 1 in 3 Gen Z adults think homeownership at any point feels out of reach financially and 72% appreciate the flexibility of renting (Freddie Mac, 2022).

What Gen Z adults want in a rental home

Understanding what this generation wants from a rental home is a great way to stay ahead of the pack during the ebbs and flows of the market as time goes on. Here are 5 things Gen Z renters want in a home so you can focus on what will drive demand today and in the future.

1. Air-conditioning 

According to the Freddie Mac survey, 78% of Gen Z adults want air conditioning in a rental home – topping their list of priorities. This should come as no surprise with temperatures rising across the globe. 

Cooling is also on the agenda for tenant rights. At the moment, homeowners have to provide heating for a comfortable living environment. A number of campaigns across the country including New York, Arizona and Florida are looking to have cooling included in this to tackle heat stress in rental homes. 

2. High-speed internet and WFH flexibility

Gen Z are starting their careers at a time when a hybrid model of working from both home and the office has cemented itself in modern workplaces. 

This (and their insatiable appetite for online video content) makes fast internet and flexible spaces a must. 75% of Gen Z adults say a rental being ‘wired for high-speed internet’ is a top priority. 

It could be as simple as ensuring there are enough outlets for laptops and chargers or installing a wifi extender such as Amazon’s eero or Google’s Mesh wifi. 

Other ideas include adding a floating desk that folds out in a common area or highlighting home office features in your home listing. 

Related: How Remote Work Trends Are Impacting Rental Demand

3. Tech-savvy management

If you want to keep Gen Z residents, don’t make them pick up the phone to report maintenance issues. Let them pay rent online. Respond fast. This is a true digital native generation and they’re looking to innovative proptech solutions to make their rental experience better than past generations. 

As a company on a mission to upend the outdated property management industry, Belong focuses on innovation and human-led services that support everyone. 

Here are five ways we’re making renting lovable for Gen Z (and everyone else!)

1. Our residents can choose their rent payment schedule, paying via the app on a cycle that suits their income. We guarantee rent to all homeowners monthly or yearly, so you get paid the same no matter what your residents choose.
   
   
2. Our customer support teams are available to residents 24/7 via the app so they never have to make awkward phone calls or wait until business hours to discuss their needs.
   
   
3. Belong residents are rewarded for every on-time rental payment by building up credit towards priority access to future rentals or even buying an eligible home on the Belong network in future. 
   
   
4. We include video in our rental listings (no hidden fees), to appeal to the video-loving Gen Z market.
   
   
5. We don’t call renters ‘tenants’ or treat them like second-class citizens. We prefer residents and respect that they want a place to belong. 

Related: 9 Ways Belong Flipped Property Management on its Head

4. Smart home appliances

Gen Z has grown up with Siri, Alexa and Google at their fingertips. They want to use their phone to control their world and appreciate smart appliances for their easy of use and cost-saving potential. 

A 2022 survey from Rent.com found that 82% of renters already want at least one smart device or system in their home. Expectations aren't wild either — 41% say 1-2 devices would be their preference.

Cost-effective picks that can benefit both homeowners and their residents include:

• Smart thermostats
• Smart smoke and carbon monoxide detectors
• Video doorbell
• Package locker

Related: What Smart Home Tech Do Renters Want Most?

5. Homes with a smaller carbon footprint

Growing up with climate change hitting crisis point, Zoomers are more likely to be environmentally conscious than other demographic segments. Research suggests that 61% of renters would pay more each month in rent for an eco-friendly apartment, which likely applies to single-family homes which cost more to run. 

You don’t need to be an eco-warrior to know that running an energy efficient home makes sense. The energy use in our home has a big impact on our utility bills, but it’s also the top contributor for our individual carbon footprint. Home energy accounts for almost a third (32%) of the average American’s carbon footprint. 

For years, sustainability measures have targeted homeowners, leaving renters to put up with emission-heavy homes. It’s unlikely that Gen Z will let this continue. Imagine you’re a Gen Z renter choosing between two similar houses. One has energy efficient upgrades, the other untouched — which would you choose? 

Related: 7 Cost-Effective Ways To Make Your Rental Home Sustainable

6. Security and safety

Another finding from the Freddie Mac survey was that 69% of Gen Z adults prioritized wanting to rent in a “low-crime neighborhood”. Now, you can’t help what happens around your rental home – but there are ways you can make residents feel safer, including:

• Installing deadbolts and security gates to reduce the risk of break-ins
• Respond quickly to repairs and damage to the home to reduce unauthorized access
• Provide a lockable mailbox to protect against mail fraud and identity theft
• Provide good lighting in and around the property, especially in common areas such as hallways, staircases, and parking lots
• Change the locks after evicting a nuisance or violent tenant
• Develop a security plan to respond to threats and install security measures as needed

Related: Criminal Activities in Rentals: Can Landlords Be Held Responsible?

Discover the modern way to look after your rental home

What if you could get future-ready and modernize your entire rental experience for Gen Z and beyond? Belong does exactly that, combining industry-busting technology with human smarts to make renting lovable for both homeowners and their residents. 

Belong is simplifying the rental experience and helping more homeowners reach their financial goals through real estate. Visit our homeowner's page to find out more about how our services are helping people to ditch outdated property management to attract residents of all generations in Seattle, Sacramento, Austin, Oakland, Miami, San Diego, Los Angeles, Charlotte, Orlando and many more.