There’s a new wave of renters just beginning to enter the real estate, particularly the rental, market: Generation Z. This generation is made up of those born between 1995 and 2010; they represent 21 percent of the U.S. population, and they are just starting to become a factor in the rental market, many of them as students looking for rental housing. They come with their particular values and needs, and if you’re an investor in student housing Eugene or multifamily apartment complexes Eugene, then I’d like to help you understand this coming influx of renters.
This article offers an insightful look at this next generation:
Introducing Generation Z – Zillow Group Consumer Housing Trends Report 2017
A new group is making their entrance into the housing market. Generation Z, defined as those born between 1995 and 2010, already comprises 21 percent of the American population-66.3 million people-a small portion of whom are beginning to enter the housing market as renters.17 In fact, Generation Z is expected to outnumber their older Millennial …
They are they first generation to grow up entirely in the Internet age, but Generation Z considers home ownership just as much a part of the American dream as older generations. They are also community oriented, and they bring that community into their process of searching for a place to live. They turn to friends and family as well as their online social media contacts to help them in their search.
Proximity to work seems to be one of their values as they make their choice about a place to live:
Most Generation Z renters (86 percent) are either currently attending college or working at an entry-level first job, making proximity between their work and home a key driver in their home selection. In fact, Generation Z renters would rather be closer to work than live in their preferred neighborhood. Two in five (40 percent) Generation Z renters list being close to work as a requirement when choosing where to live, while half of that amount (17 percent) require being in their preferred neighborhood. In fact, neighborhood selection isn’t even important for many Generation Z renters; 36 percent say it had no influence on their decision of which home to rent.
Many members of Generation Z are looking for short-term leases and furnished rentals. Understanding their needs and wants is an important part of making the most of the latest wave in the rental market.
A good commercial broker can help you understand how to capitalize on the latest rental trends. The professionals at Pacwest Commercial Real Estate are Eugene multifamily and student housing experts. Call us today if you would like to discuss this further at 541-912-6583.
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