Gen Z and your rental property
Tenants are tenants, right? Well, that’s not strictly true. You may know we’re all assigned groups according to our birth year and there’s one group that has particular property search traits, and that’s Generation Z – people born between 1997 to 2012.
Why is Gen Z an important audience for landlords?
Simply put, there are millions of people in Generation Z – or Gen Z for short – and they are highly likely to need rental accommodation as this age bracket encompasses undergraduates, those leaving university and young professionals.
This group is vast, with Statista’s most recent figures revealing there were more than 12,698 million people in the UK classed as Gen Z in 2020. Understanding what Gen Z tenants are looking for is therefore vital for landlords hoping to tap into this supply of rental income.
Gen Z pay a lot of rent
In 2020, Simply Business found that Gen Z paid 15% of all rent in 2019, which equated to payments totalling £9.2 billion. This can be compared to a rental share of just 1% back in 2014. Fast forward to 2022, and Gen Z tenants are forecast to pay £11.7 billion in rent this year – around 20% of the country’s total bill.
They look for rental properties more frequently
An article published by Property Reporter claimed 25% of Gen Z and Millennials (those aged between 28-41) have moved home 10 or more times since they left their family nest. A further 25% expected to move at least another five times before they found their ‘forever’ home.
Gen Z are prioritising eco aspects
New research by E.ON has revealed that 77% of Gen Z say a home with energy solutions, such as a heat pump or electric vehicle charger installed, is a priority when looking to rent or buy a new home. This is the same percentage of Gen Z’s for whom outdoor space is important, showing how priorities among the younger generation have shifted.
E.ON’s results were echoed by the findings of another eco survey, which featured in an article published by PBSA News. It discovered 80% of Gen Z said a home’s sustainability credentials were important to them. Respondents said good insulation that would reduce their energy bills was important (67%), while 35% supported the installation of solar panels.
They will pay more for an energy efficient rental
The E.ON research also found 81% of people aged between 16-41 (Gen Z and Millennials) would be happy to pay more for a property if it meant it had a heat pump, solar panels or an electric vehicle charger. Young renters placed importance on these aspects as they want to reduce the amount they paid for gas and electricity (35%) and help the planet (20%).
Gen Z will question a property’s green credentials
Of those taking part in the E.ON survey, 82% thought it was important for renters to ask letting agents more questions so they can understand the energy efficiency of a property when house hunting.
They place emphasis on three eco features
Gen Z are super keen on heat pumps, with 78% believing they are an important sustainable energy solution to have installed on a property within the next five years. Solar panels (77%) and electric vehicle chargers (62%) were also a priority among tenants.
If you’re keen to keep on the right side of Gen Z renters, talk to us about making energy efficient changes and setting the rent to reflect the eco-advantages of your property.
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