We talk about Millennials a lot. After all, Millennials make up 75% of the workforce, and a quarter of the whole US population. This groups preferences, desires, and fears are essential to the real estate market and have fundamentally changed how real estate agents interact with their clients (were thinking the rise of automatic texts, affordable rentals, Youtube videos!) But, what comes after Millennials? Who’s next? Welcome, Generation Z. This young generation, consisting of individuals born between 1995-2015, is just now coming of age. The eldest members born closer to 1995 are graduating college and starting to decide what type of home they’d like to live in and where. Here are Rental Beast, we’re dedicating to following the most critical real estate trends and getting real estate agents everywhere up-to-date with and informed about the latest and greatest. Scroll down to learn up on this generation’s key characteristics–Is Gen Z renting? Do they want a home? How do they like to communicate? — and to get ready to capture their business.
Related articles about different age groups and their activities in the market:
Most Real Estate Agents Don’t Know This About Millennials
Renters Over 60 Set to Dominate the Market
Gen Z’s are Risk Adverse and Practical
Congratulations, Generation Z! This generation’s rates of alcoholism, teen pregnancy, and drug use are lower than any pervious generation. We’re not psychologists, but some have pinned Generation Z’s lack of risk taking activity on growing up in an America shaken by the 2008 financial crisis, haunted by 9/11, and perennially anxious about international terrorism. They’re not just opting to stay sober for longer; members of Gen Z have also proved to be economic pragmatists. 88% report choosing a college major with a career in mind, and many of them name creating their own business as an important personal goal.
What does this mean for Generation Z’s activity in the housing market?
Prudent, or even timid spending habits means they won’t make any rash or unaffordable choices. Instead, members of Gen Z crave stability and will make smart choices about the future. One of these smart choices might mean they’ll opt to get the advice of a professional real estate agent when deciding to move. Maybe many of them will follow in their predecessor’s, the Millennials, footsteps and opt to live in an affordable rental to save money while preparing for the big move.
Lots of student debt
As we mentioned above, members of Generation Z are likely to keep a potentially lucrative future professional goal in mind when choosing a college major. However, also like their older Millennial counterparts, Generation Z is feeling, or fearing, the effect of crippling student loan on their spending habits. 46% of them feel that the money they’ve taken out on loan to fund their further education challenges their spending habits.
What does this mean for Generation Z’s activity in the housing market?
Is Gen Z renting the solution? Like Millennials, members of Generation Z might be living in rentals for a long period of time while they pay off their debt before they can scrape together a down-payment for a home.
Members of Generation Z Want a Path to Homeownership
While many members of Generation Z might be renting right now (after all, the largest proportion of renters has always been those in their late teens and early 20s), they still consider homeownership an important part of the American Dream. And, what’s more, most of them think that they can! Nearly every member of Generation Z— 97% of them— believe that they will own a home in the future.
What does this mean for Generation Z’s activity in the housing market?
They’ll pursue a path to homeownership (maybe while hunkered down in a rental paying off their student debt). Also, they’ll need the advice of a real estate professional to get themselves into a home.
Digital Generation
All members of Generation Z were born when the internet was up and (mostly) running. Practically since they’ve been children, digital interaction has been an integral part of their communication. As a result, members of Gen Z are fluent in #Hashtag, up-to-date with the latest social medias, and much prefer texting over calling.
What does this mean for Generation Z’s activity in the housing market?
Digitize. Everything. OK—maybe not everything needs to be digitized. A nice handwritten card every once in a while will certainly help you stand out from the competition. However, working with a generation of digital natives will mean that they expect every part of the leasing application process—from apartment hunt to lease signing—to involve a screen. Also, (right or wrong), they’ll expect their real estate agent to have the same sort of know-how that they do when it comes to navigating the internet. Rental Beast makes it easy for real estate agents to capitalize on the growing trend of young, digital apartment hunters and share Rental Beast listing with prospective clients. With only a few clicks, Rental Beast agents can share listings to social media. Also, Apply Now by Rental Beast allows clients to fill out an application paper-free!
Get up-to-date with the latest social media trends and best practices with these articles from your friends at Rental Beast:
7 Huge Mistakes Real Estate Agents Make on Youtube
How Many Hashtags to Use and 6 Other Instagram Tips For Real Estate Agents
4 LinkedIn Tips You Need to Know
Facebook For Real Estate Agents: 5 Essential Tips
Is Gen Z Renting Right Now?
If these young people have left the home, many of them are opting to live in rentals. While the goal is, eventually, to move into a (spacious!) starer home, they’ll enjoy renting an apartment right now.
What does this mean for Generation Z’s activity in the housing market?
Real estate agents need to get ready to welcome the oldest members of generation Z into the housing market by working with rentals and by brushing up outreach schemes for when these younger renters are ready to make the move to rentals.
There’s 60% of Gen Z renting— that’s almost 44.4 million Americans. Get ready to get their business. To learn more about the Rental Beast platform or to request a no-obligation demo visit Rental Beast for Real Estate Agents.