April 7, 2020 |
Updated August 4, 2021
The millennial approach to marketing rental housing cannot be copied and pasted onto Generation Z.
“We see so many developers talking just about millennials,” said Jamie Sabat, Director of Trends and Consumer Forecasting at Streetsense. “But millennials are more in the age bracket where they’re having children and starting to move into the suburbs.”
Therefore, Streetsense suggests that companies take a new approach when reaching this generation—and they are starting to adjust. Student housing operators have modified their amenities to reflect the more academic-minded, fiscally conservative students, according to Jay Pearlman, Senior Vice President of Advisory Services at The Scion Group.
“[Gen Z] is typically a lot more risk-averse when it comes to finances and is less likely to spend the money on the luxury properties, to borrow money and to exit school with a lot of debt,” Pearlman told Bisnow.
“Therefore, they will trade off larger floor plans or luxury amenities in exchange for a more affordable residential experience.”
CNBC reports that there are more than 60 million people in the Gen Z age range, carrying a buying power of over $140 billion, according to an estimate by advertising agency Barkley.
In traditional rental housing, Sabat says a similar approach has been taken: Trading basketball courts and saunas for coworking spaces.
Young adults and employers alike have embraced remote work, making branded coworking spaces even more enticing for renters, while also creating an additional source of revenue for developers as operators rent spaces.