6 minute read
Meet Gen Z: Understanding the Next Generation of Renters
Special from the National Apartment Association
Social media and fast website loading times grab the attention of the Digital Generation
Maybe they weren’t born with a mobile device in their hands, but that’s not an extreme exaggeration; the Gen Z demographic has grown up exclusively in the digital age.
While the same is essentially true for many of their Millennial predecessors, Gen Z’s tendencies as renters are vastly different from prior generations. From search behavior, fondness for video clips, occasional frugality and preference for simple over flashy, the generation has its share of idiosyncrasies, as panelists discussed at NAA’s Apartmentalize 2021 session, “Meet Gen Z: Understanding the Next Generation of Renters.”
Having grown up on social media, their attention spans might be shorter than usual. But that doesn’t mean it’s impossible to capture their attention. As such, multifamily marketing teams are aiming for quick-hit engagement on the front end.
“We’ll start with a 15-second video that links to our website, where we have a one-minute video that lives there,” said Garin Hamburger, Senior Director of National Property Management for Cushman & Wakefield. “When they are already engaged and want to learn more, they will be more inclined to watch a little bit longer of a video. That’s our strategy and it’s been great so far.”
While it might be difficult to catch their immediate attention, Gen Z individuals are more detailed in their initial searches. According to the REACH by RentCafe Gen Z Renter Study, they average 4.9 words per search—more than any other generation—and are inclined to use words and phrases such as “best,” “cheap” and “how to.” And despite their fondness for social media, only 13% start their search there, with 43% beginning with a search engine and 39% in a marketplace environment.
“Gen Z renters might not start their search on Instagram or social media, but I think it’s still a super important part of your marketing mix,” said Brooke Atsalis, Marketing and Training Manager of The Management Group. “They might not be starting there, but they are definitely going to go there throughout their journey, and it’s going to be a big factor in their decision.”
According to the REACH by RentCafe study, when asked to rate their top three social media outlets, 46% rated Instagram in their top three followed by Facebook (43%), YouTube (39%) and TikTok (33%). While the latter two
are of no surprise, the data dispels the notion that Facebook is becoming an afterthought to younger generations.
Additionally, studies show that 69% of Gen Z individuals tend to like a mix of professional and user-generated videos, and they prefer faster loading times and clean, soft colors as opposed to anything hyper-flashy. An overwhelming 88% indicated that fast loading times are critical to them during a search as opposed to a website with a lot of motion and animation, according to the REACH by RentCafe study.
Hamburger noted that “a broad marketing strategy to hit all the key touchpoints” is needed given Gen Z’s unique and wide-ranging search habits. If it doesn’t already, the generation, which will account for 30% of the U.S. workforce by 2023, should have the attention of the apartment world.
For more on understanding Gen Z’s housing preferences, read “The Complexities of the Digital Generation,” containing insights From the NAA/ SatisFacts/ApartmentRatings Survey on Gen Z.
About the Author:
Paul Willis is a Content Manager for
LinnellTaylor Marketing.
Retrofits — continued from 22
point where it is no longer habitable. This can create severe financial hardship for property owners who not only lose their monthly rental income, but who are simultaneously facing the costs of repair or rebuilding, while still making monthly mortgage payments.
Seismic retrofits also provide an important value enhancement to buildings. A retrofitted structure is worth more because its life has been extended, based on its ability to withstand a major earthquake.
Retrofitted structures also enjoy enhanced market value and marketability. They are more sought after by tenants because they are safer and better able to withstand the force of our region’s frequent quakes.
Don’t bet your apartment building, income, equity, and other assets that an earthquake won’t strike in your neighborhood. It’s too big a risk to take.
Find out how great a risk your apartment building faces with a free consultation. For more information visit optimumseismic.com or call us at 323-978-7664.
About the Author: Ali Sahabi, a licensed General Engineering Contractor (GEC), is a co-founder and principal at Optimum Seismic, Inc. The Optimum Seismic team has been operating since 1984. The company performs seismic engineering, steel fabrication and retrofit construction, and has completed more than 3,500 seismic retrofits and adaptive reuse projects for multifamily residential, commercial, and industrial buildings throughout California.
Do you know… AAOC offers ongoing Educational Opportunities? Visit www.AAOC.com or call 714-245-9500 for more details!
your own units, you too may be struggling with how much additional effort. While some owners have escaped without significant income losses, others have had to cope with COVID-related non-payment of rent and recalcitrant residents. And there are also rising costs for repairs and shortages of materials and skilled labor that have become common issues for everyone.
These challenges may total up to the question of why continue? What is the purpose?
The reason remains the same — to provide financial security for yourself and the assurance of a better life for your heirs. However, defining what “a better life” means may be a lot different today than it was just a year ago.
Perhaps one of your children is now in the position to take a more active role in managing your rental properties. Having an heir involved and participating is possibly what you envisioned and hoped would ultimately happen.
At the same time, the complexities of rental housing laws and regulations in today’s world require much greater knowledge and expertise. So, using a professional management service may make the best sense for everyone.
Hiring outside help and/or bringing in closer involvement with a family member is apt to mean some loss of control.
The holidays just might be the time to broach this subject, share your thoughts and concerns, and start asking your heirs about their desires and opinions.
Maybe there is an even more important need requiring a significant cash outlay, such as helping to purchase a house or paying for the education of a child or grandchild. Now may also be the perfect time to create lasting memories through a multi-generational vacation.
Even if you have other resources for cash, you need to look at all the possible scenarios. Include, as well, such considerations as hiring a property manager and other anticipated cost increases.
If you own two or more properties, although the analysis becomes more involved, your options and flexibility are significantly greater. Perhaps there is one property where rents have become harder to collect and the neighborhood is declining. From a purely investment point of view, your IRR is probably in the negative and your cash flow potential may be diminishing.
Most importantly of all is looking at and adjusting your legacy vision. Perhaps letting go just a little may provide the greatest dividends of all.
About the Author: Sonya Loera joined WR Gorman & Associate in 2013. With a background in accounting she serves as not only officer manager, but also as property manager, transaction coordinator and real estate agent.
Founded in 1972 by William (Bill) R. Gorman, this Brea(CA)-based firm focuses on personalized wealth building through real estate. With a client-first philosophy, the firm serves as an expert resource for informed decision-making and transitioning that creates sustainable legacies for investors and their heirs.
SCR WEST
Multi-Family General Contractor
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714-234-0421 scrwest@gmail.com
