To create a marketing strategy for your property, you need data to build the foundation for an effective campaign that will reach your target renters. Data helps you understand renters’ needs so you can home in on how to solve the challenges they face while creating a cohesive experience.

The Zillow Consumer Housing Trends Report 2019 sheds light on renter behaviors and insights you can use in your marketing and business planning. It’s the largest-ever survey of U.S. renters, home buyers, sellers and owners, examining the characteristics and home-related priorities of more than 13,000 households.

Here are three renter findings* to help with your marketing plans!

Generation Z is actively renting today

Even though they are the youngest renters on the block, they are already making an impact in the apartment industry. Generation Z, defined as those aged 18-24, represents 16% of total renters, but combined with millennials (ages 25-39), these two generations represent 65% of total renters. 

Gen Z is the first generation born into a high-tech, connected world of on-demand everything and omnipresent social media. Yet they walk the line between their online and offline worlds when it comes to searching for rental homes. Nine in 10 use online resources to shop for their rental and nearly two-thirds (62%) use the advice from a friend, relative, neighbor or colleague.

As young, often first-time renters, Gen Zers are more flexible and less picky, thus more likely than any other generation to find the right rental home. Only 1 in 5 (20%) Gen Z renters say it was difficult or very difficult to determine the type of home to rent, and nearly 1 in 4 (24%) say the same about determining how much home they could afford.

Multifamily marketer action item: Give great experiences

• Take the time to explain lease terms and renter responsibilities to all your new residents — especially first-time renters. Many Gen Z renters are fresh out of their dorms or parents’ houses. They may need a primer on what is expected of them as residents.
• Bridge the gap between Gen Z’s online and in-person experiences. Make sure your property photos are representative of your communities and that your staff is trained and ready to welcome this new generation of renters. For example, 62% of Gen Z renters say 3D tours would help them get a better feel for the space than static photos. Customer service and seamless digital experiences are key.

Your competition is more than other multifamily buildings

Renters cast a wide net when searching for their new home but tend to choose apartment living — perhaps due to the greater availability of apartment buildings in many markets. Most (84%) multifamily renters say they hoped to rent an apartment when they began their search for a home.

Gen Z is most interested in apartment buildings with 10 to 49 units (41% of Gen Z compared to 26% of millennials). Townhomes appeal nearly equally to Gen Z and millennial renters (15% and 17%, respectively) but to only 8% of combined boomers (ages 55-73) and silent generation renters (ages 74+). In addition, nearly half (49%) of all renters consider buying a home, with 21% seriously considering it.

Multifamily marketer action item: Be aware of opportunities

• Know your competition. While you need to keep up with new buildings and other apartments in your area, you should keep your eye on the single-family rental market and your local for-sale market too. Knowing your market conditions, and how they have changed over time, can help you talk with potential renters and renew current residents.
• Understand what multifamily renters really want. After a safe neighborhood, multifamily renters say their commute to work or school; walkability; and proximity to shopping, services and/or leisure activities are very or extremely important in making their home decision.
• View your community like prospects do. Do you have a three-bedroom floor plan that includes furnishings or community spaces that would appeal to the Gen Z crowd? Target your messaging to match (while staying compliant with fair housing laws).

Searching for an apartment is a fast, sometimes surprising process

Nearly half (49%) of all renters know for less than three months that they will need to find a new place. On average, they spend about 2.48 months searching for their new homes, and the vast majority (84%) use online tools to help the search. 

For some renters, thinking outside the box is a pleasant surprise. Many (42%) say they discovered their home in a new neighborhood — not in their initially preferred area.

Multifamily marketer action item: Control your story

• Word-of-mouth is important. Today’s renter relies on others’ opinions to help make their renting decisions. Actively engage with them via neighborhood businesses like restaurants and shops so that more people can see (and share) how your presence is reflected in the area.
• A strong online presence is vital. Make reputation management a priority. Be sure your online reputation is positive and your social channels reflect your community’s vibe and level of service.
• Response matters. Moving, especially on an accelerated timeline, is stressful. Understanding that stress and helping renters mitigate it can help you win them over. One way to do that is by responding to inquiries in under 24 hours, which more than two-thirds (69%) of renters expect.

 

*All statistics from the Zillow Group Consumer Housing Trends Report 2019 survey data