{"id":29688,"date":"2023-01-15T22:31:29","date_gmt":"2023-01-15T22:31:29","guid":{"rendered":"https:\/\/www.parcelpending.com\/blog\/top-5-apartment-rental-trends-for-millennials-and-gen-zers-in-2023-2\/"},"modified":"2023-08-29T09:53:58","modified_gmt":"2023-08-29T09:53:58","slug":"top-5-apartment-rental-trends-for-millennials-and-gen-zers-in-2023","status":"publish","type":"post","link":"https:\/\/www.parcelpending.com\/en-gb\/blog\/top-5-apartment-rental-trends-for-millennials-and-gen-zers-in-2023\/","title":{"rendered":"Top 5 Apartment Rental Trends for Millennials and Gen Zers in 2023"},"content":{"rendered":"

Getting a foothold in the housing market continues to be a significant challenge for Millennials and their younger Gen Z cohorts, now beginning to come of age. In 2022 rising housing prices, decreasing inventory, and overall higher mortgage rate options have made it even more difficult for younger buyers to join the housing market ladder.<\/p>\n

This trend continues in 2023 with expenses continuing to increase and the country in the middle of a cost-of-living crisis has only made it more challenging for young people to save for a down payment and meet the financial requirements of homeownership. Now, younger generations are increasingly having to or choosing to go with rental housing rather than buy their homes.<\/p>\n

With rental property demand expected to remain strong, it\u2019s critical that apartment property management take housing prices, housing market conditions, rental housing market conditions, annual rent growth, and younger residents\u2019 preferences and apartment rental trends into account when evaluating community improvements and resident retention ideas<\/a> for 2023.<\/p>\n

Rental Market Indicators for 2023<\/b><\/h2>\n

2022 and 2023\u2019s unrelenting inflation spikes hit residents hard.<\/p>\n

The Bank of England\u2019s decision to raise the base rate from its historic low of 0.1% to 4.5% caused mortgage rates to soar. Landlords, facing higher borrowing costs, have passed these expenses onto tenants, resulting in increased rental prices. This surge in mortgage rates has made it more challenging for individuals to afford a home, further fuelling the demand for rental properties.<\/p>\n

According to a report by Zoopla, rental prices\u2019 inflation has slowed slightly from 12.3% in mid-2022, but there is no sign of any imminent average rent increase slowdown.1<\/sup><\/p>\n

In addition to rental prices rising 20% in 3 years1, the higher cost of energy and household goods are also squeezing renters\u2019 pockets. With expenses rising much faster than salaries, Millennials, and Gen Zers are feeling the pinch of inflation and rent increase harder than most. Given their lower average incomes, an increase in monthly rent prices represents a more significant portion of wages than it does for older groups who earn more.2<\/sup><\/p>\n

For Generation Z, the economic future increasingly appears to make renting an apartment the most viable option.3<\/sup><\/p>\n

Recent statistics reflect this dynamic, with annual rent growth projected at 4% in 2023.4<\/sup> The rental market doesn\u2019t look likely to get cheaper anytime soon, \u201cgiven higher borrowing costs for landlords and further regulatory changes which will add to the cost of investing\u201d, said Zoopla<\/a>.5<\/sup><\/p>\n

With the cost of living squeeze, renters are likely to be drawn to rental homes that offer the most fair market rent value for money in 2023. For build-to-rent developments, this pushes the need to provide excellent standards of service even greater. To stand out as a viable and affordable housing option for Millenials and Gen Zers \u2013 the service offering must meet the demands of this generation. In this blog, we take a look at the top 5 apartment living trends for millennials and Gen Zers.<\/p>\n

Top 5 Apartment Living Trends for Millennials & Gen Zers<\/b><\/h2>\n

Millennials and Gen Zers are sophisticated consumers with the power to reshape the apartment rental market to better meet their housing needs. According to UK population estimates from Statista, Millennials surpassed Baby Boomers as the largest living adult generation in 2020 and have since been dubbed the \u201cGeneration of Renters\u201d.6 Even more tech-forward and mobile-first than Millennials, the younger \u201cZoomer\u201d (Gen Z) cohort is now entering the market as apartment residents represent around 15% of the population<\/a>.7<\/sup><\/p>\n

Meeting the needs of Millennial & Gen Z apartment residents should be the focus of every multifamily property manager across the country. Being able to provide the right kinds of amenities and services is critical to maintaining healthy occupancy rates. Here are 5 significant trends that are influencing young residents\u2019 decisions:<\/p>\n

1. Technology<\/b><\/h3>\n

Younger residents are looking for in-unit and on-site technology amenities such as mailbox security, smart temperature controls, smart locks or access controls, and smart apartment parcel lockers<\/a> for secure package deliveries.<\/p>\n

2. Package Lockers<\/b><\/h3>\n

Recent statistics show that 4 out of 5 Millennials do most of their shopping online, and 74% of Zoomers turn to mobile-first when they do decide to buy an item.8,9<\/sup> With all the online shopping comes a huge volume of package deliveries in mailboxes<\/a> and the expectation that they will be secure and accessible once they arrive on-site. Smart parcel locker<\/a> solutions are a highly effective, secure, and cost-effective solution to this critical need.<\/p>\n

3. Connectivity<\/b><\/h3>\n

This no longer means a solid WiFi connection! It also means connecting to other people and our environment visually, physically, and socially. Use design principles that allow residents to meet and engage with one another. Rather than enclosed areas or those only designed for a specific use, try and create more open and shared spaces in a building, such as community gardens or rooftop terraces.<\/p>\n

4. Walkability<\/b><\/h3>\n

Access to nearby services and amenities such as restaurants, theatres, entertainment, and workspaces is important to these two demographic groups. Consider ways to make your build-to-rent property a more dynamic and engaging mixed-use community.<\/p>\n

5. Eco-Friendly Amenities<\/b><\/h3>\n

Younger residents, Millennials in particular, are interested in saving water and energy to help the environment and lower their bills. Install energy-saving appliances like low-flow shower heads and ensure recycling stations are available on the rental property. Adding on-site bicycle racks can also encourage eco-friendly commuting.<\/p>\n

Convenience-Based Apartment Amenities Are Key for 2023 and Beyond<\/b><\/h2>\n

From smart home technology<\/a> to residential security, to secure on-site delivery, communities must deliver more for the current and prospective younger generations of apartment residents. Millennials and Gen Zers expect to get what they want, where and when they want it \u2013 often within a day of ordering it. Secure delivery using solutions like a smart electronic locker<\/a> is key to satisfying younger residents \u2013 both in 2023 and beyond.<\/p>\n

\u201cThe residential industry is always innovating and looking for ways to create the best living environment for their residents,\u201d points out Colleen Lambros, Chief Marketing Officer at Parcel Pending<\/a>. \u201cNow the challenge is to provide amenities and services that directly integrate with today\u2019s consumers and their elevated expectations.\u201d10<\/p>\n

Ready to lock in your package management solution? Contact a Parcel Pending by Quadient representative today.<\/a><\/p>\n

 <\/p>\n

Sources:<\/b><\/p>\n

    \n
  1. Donnel, Richard. Rental Market Report – What’s Happening to Rents?<\/em> www.zoopla.co.uk \u00a0March 29, 2023. https:\/\/www.zoopla.co.uk\/discover\/property-news\/rental-market-report-march-2023\/<\/a><\/li>\n
  2. Anderson, Dana, Theodore Velentzas and Sheharyar Bokhari. Millennial and Gen Z Renters Have Personal Inflation Rates Above 11%, Compared with 8.5% For the Typical American<\/i>. www.redfin.com. September 1, 2022. https:\/\/www.redfin.com\/news\/inflation-renters-gen-z-millennials-2022\/<\/a><\/li>\n
  3. Team Poplar. 5 Ways Millennials are Changing the Rental Market.<\/i> www.poplarhomes.com. August 10, 2022. https:\/\/www.poplarhomes.com\/real-estate-investment\/5-ways-millennials-are-changing-the-rental-market\/<\/a><\/li>\n
  4. \n
    JLL Residential. UK Rental Market Update: Insights and Predictions for Renters in 2023.<\/em>https:\/\/residential.jll.co.uk\/insights\/news\/uk-rental-market-update-2023<\/a><\/div>\n<\/li>\n
  5. \n
    Donnel, Richard. Why are there so few homes to rent? www.zoopla.co.uk.<\/em> January 6 2023 https:\/\/www.zoopla.co.uk\/discover\/property-news\/why-are-there-so-few-homes-to-rent\/<\/a><\/div>\n<\/li>\n
  6. Clark, D. Population of the UK 1990-2020 by generation.<\/em> www.statista.com. March 9 2023. https:\/\/www.realtor.com\/research\/2023-national-housing-forecast\/<\/a><\/li>\n
  7. Mintel. UK Lifestyles of Generation Z Market Report 2023. www.mintel.com. 2023.
    \n    https:\/\/store.mintel.com\/report\/uk-lifestyles-of-generation-z-market-report<\/a><\/li>\n
  8. BusinessWire. CouponFollow Millennial Shopping Habits Report Find 73% Changed Shopping Habits Due to Pandemic.<\/i> www.businesswire.com. September 15, 2022. https:\/\/www.businesswire.com\/news\/home\/20220912005909\/en\/CouponFollow-Millennial-Shopping-Habits-Report-Finds-73-Changed-Shopping-Habits-Due-to-Pandemic<\/a><\/li>\n
  9. Martin, Michelle. 24 Gen Z Statistics That Matter to Marketers in 2023<\/i>. www.blog.hootsuite.com. August 30, 2022. https:\/\/blog.hootsuite.com\/gen-z-statistics\/<\/a><\/li>\n
  10. Lambros, Colleen. Rising Consumer Expectations: Creating New Challenges & Opportunities for Multifamily Communities<\/i>. www.parcelpending.com. October 4, 2019. \/en-us\/blog\/rising-consumer-expectations-creating-new-challenges-opportunities-for-multifamily-communities\/<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    Getting a foothold in the housing market continues to be a significant challenge for Millennials and their younger Gen Z cohorts, now beginning to come of age. In 2022 rising housing prices, decreasing inventory, and overall higher mortgage rate options have made it even more difficult for younger buyers to join the housing market ladder. […]<\/p>\n","protected":false},"author":3,"featured_media":23923,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[242,257],"tags":[],"class_list":["post-29688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-en-gb","category-blog-residential-en-gb"],"acf":[],"yoast_head":"\nTop 5 Apartment Rental Trends for Millennials and Gen Zers in 2023<\/title>\n<meta name=\"description\" content=\"Explore the top 5 apartment rental trends for Millennials and Gen Zers in 2023. 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