Gen Z Residents: Expectations and Strategies for Multifamily Communities

Where older generations may fumble, Generation Z glides through the digital world with near-supernatural speed, their phones seemingly hardwired to their palms. These digital natives, sandwiched between millennials and Generation Alpha, aren’t just tech-savvy — they’re tech-embodied. And they’re about to revolutionize multifamily housing for decades to come.

Understanding Gen Z: The Next Generation of Renters

Gen Z, born between 1997 and 2012, are moving out of their parents’ homes and mainly into the rental market thanks to inflationary constraints, paycheck-to-paycheck living, high mortgage rates, and a lack of housing inventory. Every 1% drop in the share of 25–34-year-olds living at home translates into more renters in the market.

Zoomers’ presence in the rental market has exploded, with their renter households surging from 3.2 million in 2019 to a staggering 7.9 million in 2022 — a seismic shift reshaping the rental landscape.¹ This generation – and their preferences – are going to have a significant impact on the way communities market themselves, incorporate amenities and services, and cultivate the resident experience.

The Impact of Zoomers on the Multifamily Industry

As the generation that spends six hours or more per day on their phones, this cohort demands online tools for every step in the rental process.² Zillow research reveals that 70% of renters prefer digital first interactions when looking for an apartment.³

• Virtual Tours — 360-degree tours have morphed from a luxury to a necessity. Recent statistics demonstrate that 67% of people want more businesses to offer virtual tours. Customers aged 18-34 are 130% more likely to rent an apartment if there is a virtual tour.⁴
• Authentic Testimonials and Reviews – Unlike other generations, Gen Z relies heavily on authentic experiences over traditional advertising. They turn first to social media reviews from actual residents on platforms like TikTok and Instagram, wanting to see genuine day-in-the-life content before considering a property. Only 39% start their apartment hunt through conventional rental websites — the lowest rate of any age group.⁵ For this cohort, seeing is believing, and social proof matters more than polished marketing campaigns.
• Online Rental Journey — Digital tools such as EliseAI and Funnel Leasing allow for AI-enhanced responses, 24/7 chatbots, physical tour scheduling, answers to FAQs, and online applications that facilitate the rental process. Gen Z is so comfortable using AI that 23% state they are comfortable communicating through an online chat, and 9% would use readily available tools such as ChatGPT or Gemini to compare rental properties.⁶

Sustainability: More Than Just a Buzzword

Gen Z isn’t just talking about sustainability — they’re voting with their wallets. In 2023, a third of these consumers cut ties with brands that didn’t meet their environmental standards, while nearly half (49%) actively chose sustainable products, according to Afterpay research.⁷ “Sustainability is the new amenities race,” notes Noel Carson of The Bozzuto Group, and multifamily properties are racing to keep up.⁸

Eco-friendly property management extends beyond LED lights to connected thermostats controlling energy use. Motion sensors trigger lighting, heating, and blinds, conserving energy in common areas and vacant apartment units. Today’s most advanced technology employs artificial intelligence for predictive analytics, alerting maintenance teams before issues arise. Leak detectors, shut-off valves, and smart meters work in tandem to create an intelligent water management platform, while connected appliances further optimize water conservation. According to a Johnson Controls survey of the company’s Building Efficiency Panel, 70% of respondents believe that the ability to predict and diagnose problems and provide or propose solutions will be a “game changer.”⁹

Despite many advances in the industry, multifamily communities lag significantly in recycling, with EPA data showing just 14% participation compared to single-family homes.¹⁰ Three core challenges drive this gap: insufficient resident education, outdated infrastructure, and limited property management engagement. Yet the financial benefits of overcoming these barriers are compelling: Patrick Malloy, Resource Conservation Specialist at the King County Housing Authority, reports one property saved over $21,000 annually by right-sizing recycling and garbage services.¹¹

Gen Z: The Price-Conscious Resident

This is the generation that demands value for their dollar – a point of importance for multifamily operators. 46% of Gen Z’ers are happy to pay less for a cheaper product, and a startling 71% would rather wait for a product to go on sale than buy it at full price. This mindset translates into a delicate balance whereby Gen Z renters are looking for a bargain but also believe in quality. For 64% of this demographic, quality is the most important purchasing factor – including when committing to a lease.¹²

Exceeding Gen Z Expectations with Smart Lockers

Given Zoomers’ preference for on-demand, 24/7/365 access, smart lockers are a perfect fit for communities looking to add amenities that maximize value for residents.

With the rapid growth of e-commerce and rising consumer expectations for same-day delivery, efficient and secure parcel management systems are essential. Lockers are already a universal amenity; according to recent research from the National Business Research Institute, almost 90% of residents at properties that have lockers take advantage of them weekly and 73% receive 1-3 weekly deliveries. Combined with its purchasing power of $450 billion in the US, Generation Z will be a heavyweight in this area.¹³ As a generation of online shoppers, lockers are an amenity that they will use regularly, unlike other big ticket community investments like gym, swimming pools, and clubhouses or common areas.

Smart lockers offer a reliable and secure solution for package storage, significantly minimizing the risk of theft or damage. Always available, they allow residents to retrieve their parcels at their convenience using unique access codes or mobile apps. This flexibility eliminates the need for residents to adjust their schedules or rush home, ensuring packages are never left unattended. As a result, this amenity more than meets Gen Z’s requirement for convenience and on-demand service.

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Gen Z residents are reshaping the multifamily industry with their tech-driven lifestyles, value-conscious spending, and eco-conscious values. Amenities like smart lockers cater to their need for convenience and accessibility. Multifamily communities that adapt to these preferences will thrive in a market increasingly shaped by Gen Z’s expectations.

Ready to meet the needs of Gen Z? Speak to a Parcel Pending representative today!

Sources:

1. Yan, Matt. Who is Driving Rental Demand? Hint: It’s Not Millennials Anymore. www.nytimes.com. July 25, 2024. https://www.nytimes.com/2024/07/25/realestate/rental-homes-millennials-gen-z.html
2. Dua, A., Finneman, B., Hutchins Coe, E., et al. What is Gen Z?. www.mckinsey.com. August 28, 2024. https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z
3. Leasing Chat. From Lead to Lease: How Funnel Leasing’s Tools Are Transforming Apartment Rentals. www.leasing.chat. December 11, 2024. https://www.leasing.chat/blog/from-lead-to-lease-how-funnel-leasings-tools-transform/
4. Digital in the Round. 13 Mind-Blowing Virtual Tour Statistics. digitalintheround.com. July 11, 2021. https://digitalintheround.com/virtual-tour-statistics/
5. Zimmerman, Michael. How Gen Z renters are changing multifamily marketing norms. www.rentvision.com. August 19, 2024. https://www.rentvision.com/blog/how-gen-z-renters-are-changing-multifamily-marketing-norms
6. Ibid.
7. Afterpay. Beyond the Crocs & TikToks: How Gen Z Are Shopping (U.S. Edition). afterpay-newsroom.yourcreative.com.au. n.d. https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2022/11/Afterpay-Gen-Z-US-Report-2022.pdf
8. Kraus, Blake. For Gen Z, Sustainability Is the New Amenities Race. www.multifamilyexecutive.com. June 10, 2010. https://www.multifamilyexecutive.com/design-development/for-gen-z-sustainability-is-the-new-amenities-race_o
9. Deloitte University Press. Smart buildings: How IoT technology aims to add value for real estate companies. ww2.deloitte.com. 2016. https://www2.deloitte.com/us/en/insights/focus/internet-of-things/iot-commercial-real-estate-intelligent-building-systems.html
10. Metzler, Michelle. Cracking the Code to Better Recycling. www.multifamilyexecutive.com. April 2, 2018. https://www.multifamilyexecutive.com/property-management/cracking-the-code-to-better-recycling_o
11. Ibid.
12. Sukhraj, Ramona. Gen Z Buying Habits: What Gen Z Spends On & Why Marketers Need to Care. blog.hubspot.com. May 20, 2024. https://blog.hubspot.com/marketing/what-gen-z-spends-money-on
13. Ibid.