Gen Z is writing new rules for multifamily housing

They’re savvy, and they know exactly what they want. Do you?

The youngest generation of today’s adults, Gen Z, has fully entered the multifamily housing market. Born from 1997-2012 to young baby boomer or Gen X parents, Gen Z is searching for multifamily housing — and prioritizing amenities and services beyond the typical living environment of yesteryear.

As an owner, developer, or leader in the multifamily housing industry, understanding this generation is essential to remain competitive in the marketplace. Do you know what Gen Z wants? Here’s what the research shows.

Understanding Generation Z

With every generation, there’s a recalibration in multifamily housing to appeal to the tastes and preferences of a new generation. Gen Z, or the Zoomers as they are sometimes called, have wants and needs that are very different from those of previous generations who have sought multifamily housing. And analysts say this demographic is on the cusp of being the most influential in the multifamily housing market. By 2030, they are expected to be the largest demographic of renters in the U.S. Simply put, understanding this demographic is key to capturing the market.

There are clear reasons for some of this generation’s preferences.

• Members of Generation Z are “digital natives,” which is to say they’ve always been digitally connected with access to the internet and personal devices.
• The Zoomers face huge barriers to homeownership, including higher costs of living, higher interest rates, and lower housing inventory than their parents faced.
• Many of this generation believe they will be renting for the long haul. A Freddie Mac survey in 2022 found a third of Gen Z adults don’t think owning a home will be possible in their lifetimes.
• Because they value personal fulfillment, Gen Z renters appreciate the flexibility of renting and the low-maintenance lifestyle it affords them. Fewer property caretaking responsibilities frees them up to pursue their interests instead.

Multifamily housing reimagined, courtesy of the Zoomers

So, what exactly does Gen Z want in their rental property? And how can multifamily housing owner/developers and operators appeal to this distinctive and powerful demographic? Here’s what generational researchers and multifamily housing industry experts are finding.

• Authenticity online. You may be surprised to know that attracting Gen Z starts with your online presence. As digital natives, they see through online listing tactics such as paid placement. They’ll dig deeper to find what’s real, what’s authentic and what truly speaks to them. This may include digital strategies you haven’t considered or fully leveraged in the past, such as social media. Keep in mind Gen Z prefers testimonials from real people and even connecting with them.
• Value for money. Gen Z is price-conscious and pragmatic, so we can expect this generation to consider the amenities and weigh them against the cost of living at a multifamily housing complex.
• An experiential living environment. Thoughtful design for spaces that create a strong sense of place speaks to this demographic. Gen Z values art, aesthetics, and local touches that highlight what’s unique and interesting about their community. While spaces should feel homey, elevated touches will be valued and appreciated by residents of this generation.
• A sense of community. Certain amenities in multifamily housing, such as fitness centers and dog parks, have become expected. To go the extra mile to connect with Gen Z, owner/developers will want to create spaces for building community and creating opportunities for social interactions. This may include rooftop gathering spaces near a pool, for example, corners for coworking and spaces for shared recreation.
• Location x3. Where they live and the type of lifestyle it affords them are important to Gen Z, but thankfully, they don’t all want the same thing. Those who are working in offices are seeking a place to call home which is near their work. In urban spaces where land is at a premium, maximizing the potential of your property for this generation’s needs is key. Working with a trusted design and build firm can help clarify priorities and the possibilities for amenities within spatial restrictions. At the same time, some members of this generation are already considering building a family and are prioritizing more space and family-oriented amenities as a result. The good news is wherever you build your multifamily housing complex, you’re bound to appeal to some of this generation from a location perspective.
• Gen Z takes the future of the planet seriously. As a demographic, they value recycling, composting, energy efficiency, and water conservation. They’ll see through greenwashing, so if you’re promoting green initiatives, be sure they’re legit.

Gen Z is ready to embrace the rental lifestyle long-term. Are you ready for Gen Z?

Gen Z is ready to rent, but what they’re looking for differs from what their parents and grandparents wanted in multifamily housing. Getting to know and understand this unique generation will inform your design and build project decision-making from the moment you sit down with our team to discuss your vision. Together, we can build a multifamily housing solution for La Crosse, WI, or Rochester, MN, that satisfies the Zoomer aesthetics, practicalities, and desire for connection. Contact our design and build professionals to get started today.