With the rental market active yet again, you must be wondering what is the newest generation of renters? Well, contrary to popular belief, they’re not millennials. In fact, according to one new study, the renters that have just begun entering the market are not unlike baby boomers in many ways. But don’t worry! That doesn’t mean they have the same preferences, or that your property needs to be completely different from your last set of tenants. Let’s take a look at what defines London’s newest generation of renters and how this could affect the way you market to these customers in the coming years.
1. Younger Generation Renters
Generation Z is making its mark on London’s housing market, bringing with it new lifestyle trends and preferences. With younger renters preferring to rent in London, particularly in South East London, compared to their older counterparts (who are increasingly showing a preference for homeownership rather than renting), it appears that young people today are increasingly prepared to make compromises. Many younger-generation renters see renting as a stepping stone between college or university accommodation and homeownership. Indeed, for some of them renting is simply an extension of their parents’ home until they have saved enough money for a deposit on their own place. These renters are looking for places that meet their lifestyle requirements and has space for them to work and to entertain.
What makes Generation Z so different from millennials? In a nutshell, their priorities. If you’re looking to lease a residential property in London, it pays to learn more about how younger renters think and feel about home ownership. While they may be living in London for a shorter period than their millennial predecessors, they’re making a point to enjoy every minute by living in an environment that suits them best. Thus they are looking for a property that meets those expectations.
3. Work life balance
Generation Z is now entering its prime renter years. With almost ten years separating millennials and Gen Z, it seems likely that these groups will have very different priorities when choosing where to live and what to rent. While there has been much said about London’s millennial population (because they like avocado toast), comparatively we are still learning how to accommodate the newer generation. What we do know is that these renters are more keen to have a good work-life balance while making time for their hobbies and things that bring them joy. Properties with space, a community and access to other like-minded individuals is something that Gen Z really value. BTR developments and with a focus on providing renters a place where they can work and play is a place that would work well for them.
4. Experiences over Material Goods
Gen Z grew up with technology. Their lives revolve around social media and their smartphones while experiencing the new and different. They prioritise their experiences over material goods and want to explore travel opportunities before establishing themselves in a career. We’re seeing them flock to London for its sense of community, vibrant nightlife and culturally diverse community which is much different from other major cities like New York or Los Angeles; they want to be where it’s happening right now. They aren’t afraid to experiment or try new things. It’s why they don’t mind living in small spaces; because they can easily rent out extra rooms if needed.
Gen Z, now forming a sizeable minority in London’s rental population. Compared to millennials, they differ in significant ways: they’re more likely to be working full-time and living on their own; they’re more likely to live with family or as part of a shared household; and though many would like to buy, far fewer actually will. While we can safely predict that Gen Z will grow even further—and we already know plenty about how it differs from older generations. What is clear is that London has changed enormously over recent decades, and that will continue to change.
With the return to normality and the ever consistent demand of renters we are here to support you close more deals. XChange connects and local agents with a vast network of developers, BTR operators and international agents.