Entrata recently hosted a webinar about the defining characteristics of Gen Z, that massive generation born between 1997 and 2012, and how those characteristics impact their decision on whether or not to rent. The sheer size and diversity of this group – the largest, most ethnically diverse, and most educated generation yet – sets the stage for a fascinating shift in the housing market. As these individuals transition from student housing to conventional rentals, their unique expectations and priorities are reshaping the landscape of multifamily properties.

One of the most surprising revelations from a recent survey of 2,000 Gen Z renters was their perspective on homeownership. More than 72% of respondents indicated they view renting as the smarter financial move. This isn't just a matter of preference. It's a reflection of the economic realities they've grown up with. Having witnessed the fallout of the 2008 housing crisis and facing rising interest rates, Gen Z is prioritizing financial savvy and recognizing the benefits renting can bring. They're weighing the costs of homeownership—from down payments and mortgages to ongoing maintenance and repairs—and often finding that renting aligns better with their current financial goals.

Beyond the numbers, the webinar explored the lifestyle choices driving Gen Z's rental decisions. Freedom and flexibility emerged as key themes. This generation values the ability to relocate for career opportunities or simply to experience different cities and lifestyles. The rise of remote work has further fueled this desire for mobility, allowing them to untether themselves from a fixed location.

This focus on flexibility is closely linked to another significant finding: Gen Z's emphasis on experiences. A striking 83% of Gen Z renters see leasing as a way to save money for travel, personal growth, and other enriching activities. For them, life isn't just about acquiring assets. It's about collecting memories. This shift in priorities is evident in the fact that 45% of Gen Z prioritize travel and career over buying a home.

When it comes to choosing a rental, affordability remains a top concern for 75% of Gen Z renters. However, this isn't solely about finding the cheapest option. It's about aligning housing costs with their desire to fund those travel and career goals. Location is also a major factor, with proximity to work, school, and social activities ranking high on their list.

Interestingly, while amenities are still important, the type of amenities Gen Z desires is evolving. They're drawn to spaces that foster community and connection, with strong Wi-Fi, co-working spaces, and pet-friendly features taking precedence. The influence of student housing, which has long catered to the needs of this demographic, is becoming increasingly apparent in conventional multifamily properties.

Technology, unsurprisingly, plays a pivotal role in Gen Z's rental experience. As digital natives, they expect seamless online interactions, from the initial search for an apartment to ongoing communication with property managers.

In conclusion, Gen Z is a unique and influential force in the rental market. Their financial pragmatism, desire for flexibility, emphasis on experiences, and tech-savviness are reshaping the industry. To effectively attract and retain this generation, property owners and managers must adapt to their evolving needs and preferences.

Want to dive deeper into the data and gain more insights into Gen Z renters?

Watch the full webinar here!