It’s no secret that renting is growing in popularity with every segment of the population– from young Gen Zs just entering the housing market to the Baby Boomers once defined by stable homeownership. However, it’s the Millennial generation leading the charge! This formidable market force is prone to renting everything– from their clothes, to, of course, their housing. As the New York Times put it: “They see it. They want it. They rent it.” Let’s look at why Millennials rent, and see a couple of tips on how you can capture their business.
They Want to Stay On Budget
When Millennials are asked why they opt to live in a rental over a traditional starter home, most name affordability as the most important factor. And, with good reason. Putting down a mortgage payment is out of the cards for Millennials struggling to pay off student debt. Also, many are aware of the way that hidden maintenance fees and costs can pile up and add thousands to the bottom line.
They Want to Be Environmentally Conscious
Go green! Recent studies show that Millennials see sustainability as a big priority when choosing consumer goods. Recycled packaging, ethical materials, and businesses with a conscious appeal to many concerned about rapidly rising temperatures and water levels. Housing is no different! Millennials are likely elect to live in small, communal spaces like tiny homes or apartments with great access to public transport.
No Space? No problem!
Rentals are likely to have less space than houses, but it’s not a problem for this crafty generation. Pinterest-Approved DIY solutions to small spaces like under-bed storage make it easy for many to stay on budget with their housing and make small spaces feel spacious.
They Need Flexibility
A big reason why millennials rent is because Renting offers a flexibility that owning can never match. Those who aren’t settled down completely in their careers, or who crave common changes of scenery love the fact that they can leave when their lease is up. Millennials are likely to move for new job opportunities, and, with the age of marriage and childbirth increasing, there’s significantly more flexibility to travel across the country and start again.
They Want Nice Amenities (And Someone to Fix Them Up!)
While many millennials cannot afford a new house, a hefty average income of $72,000 allows some to pick and choose when it comes to apartments. As a result, landlords are upping their amenity game to beat out the competition. Desirable apartments have stainless steel appliances, marble countertops, The best part about nice amenities in a rental? When there’s a leak, no need to pull out your own wrench and play plumber; a quick call to the landlord can get someone (who knows that they are doing!) in the apartment to fix your faucet.
Millennials can rent anywhere!
Renting isn’t just for urban hubs. The suburbs actually saw a big hike in number of available rentals. As of 2017, suburban areas are outpacing urban areas in 18 out of 20 of the largest metros (check out the article we wrote about this last week). For many, opening up the wallet wide to stay in walking distance of their central business district office is not worth it. So, instead, Millennials are moving to the suburbs and renting one of the many different styles of apartments.
Some Don’t Love Rentals, Some Actually Want to Buy Houses
But… All these reasons why millennials rent don’t always convince some to stay in a
rental, especially those in their early 30s approaching the 32-mark where many begin to buy their own homes and start a family. A lot actually want to buy a house, or want a path to homeownership that’ll settle them down in a few years. The catch? Crippling student debt, low wage growth, and myths about a down payment— to name a few. Sometimes all would-be homebuyers require to take the plunge into homeownership is a good real estate agent to let them know which path makes most sense.
In the meantime, Millennials eager to buy homes will just wait it out in their environmentally conscious, flexible rental.
Here’s Some Smart Strategies to Capture Millennial Business:
Now that we’ve explore why Millennial rent, are you ready to work with the newest consumers and get your share of the rental market? Here’s two savvy tips to working with millennials (more on the way!)
A Social Media presence
Raised by the Internet, Millennials are fully fluent in social media. A robust digital presence confirms your existence, your activity, and is a great place for a potential client to understand what you can do for them, and the great work that you’ve already done. It might be tough and time-consuming, but working on branding and developing a digital marketing strategy is worth the leads it generates. You can easily make business accounts on Facebook, Twitter, Instagram, and LinkedIn, and use them to create compelling visual stories and connect with other agents and potential leads. Sites like squarespace.com or wix.com allow you to create sleek, sophisticated personal websites where you can direct a client to learn more.
Millennials also search the internet regularly. In fact, a staggering X% report searching online to find their next home. Be ready for a client who knows (or think they know) what they want and what’s out there from internet research.
Millennials are used to rapid-speed communication and most text on a daily basis. They also far prefer forms of written communication— text messages and emails— over phone calls, so keep this in mind when you’re trying to get a response. Of course, respond to their messages as a soon possible and make sure that your texts are clear and grammatically sound. Many Millennials feel comfortable with a conversational tone, so aim for a warm voice. An occasional smiley face doesn’t hurt.
Work With Rentals
Why wait for Millennials to buy a home when you could be making money finding them a rental? Working with rentals allows you to access this growing segment of the population.
So, there’s why millennials rent. Get ready to build rentals into your business plan with Rental Beast. We know how hard finding and working with rentals can be, so we made a whole platform to simplifying the process. See all rental inventory available, not just the 20-30% on your local MLS, in our database of over 7 million rental listings. Get leads in the zip codes you work in texted directly to your phone, and share
Ready to unleash the beast? To learn more about the Rental Beast platform or to request a no-obligation demo visit Rental Beast for Real Estate Agents.
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