Learn how younger generations are changing the multifamily market for good
We recently discussed how millennials are disrupting the real estate market. Now, it’s the turn of Generation Z.
Who is Generation Z?
According to Forbes, Generation Z—also known as Gen Z—is the cohort after millennials, and is defined as those born between 1996 and 2010.
Gen Z will comprise a staggering 32 percent of the global population of 7.7 billion before the end of the year. This will nudge them ahead of millennials, who will account for a 31.5 percent share, according to a report from Bloomberg.
How is Generation Z changing the multifamily market?
With these statistics putting things into perspective, many multifamily investors are now stopping to ask themselves, “What exactly can we expect from this new generation of renters?”.
While millennials are known for their love of high-end amenities, Gen Z is arguably more socially focused. “I think people need to realize that Gen Z is different from millennials,” Eric Burka, Managing Principal of Streetsense, said in a recent interview with commercial real estate news company Bisnow. “They are more community-oriented, socially conscious and really care about brands.”
As the first generation to grow up with consistently reliable high-speed internet, Gen Z is also incredibly tech-savvy and accustomed to being connected at all times.
How can multifamily investors prepare for Generation Z?
One thing that multifamily owners shouldn’t do is underestimate the influence of Gen Z: a recent report suggests that they will make up 40% of consumers worldwide by 2020, with an estimated $143B in buying power.
Our advice to multifamily owners: be careful when making changes to your property. What’s appealing now to today’s millennial renters may lose relevance with tomorrow’s Gen Z renters. However, one thing that’s worth seriously considering right now is smart technology that can adapt to meet evolving needs over time.
At 100Units.com, we’re excited to see what the future holds. One thing’s for sure: the continually changing needs of renters means that the multifamily market will remain a challenging and exciting investment choice for years to come.
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- FOX 13 Tampa Bay