A new generation is finally entering the condo rental market. Gen Z, born between the years 1997 to 2012, is redefining the real estate industry as you know it with their values, preferences, expectations, and most importantly, their unique housing choices.
This upcoming demographic of renters has its priorities when it comes to their choice of pre-selling, rent-to-own, and ready-for-occupancy properties. They’re a tech-savvy, sustainability-focused generation that wants their homes to match their need for connectivity, eco-friendliness, and community too.
As a property manager or developer, you need to learn about this new market to adapt to its demands. Their values are changing the way the industry works - so you’ll want a comprehensive understanding of this new wave of prospective tenants for your real estate success.
Need expert insights into the housing needs of this emerging generation? Check out this guide by DMCI Homes to better understand the priorities and preferences of this exciting new real estate demographic.
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Understanding Gen Z values
Want to understand what the new wave of renters is looking for from their next home? Here are some insights into this rising market for yourreal estate business.
Digital native generation
A digital native is someone who grew up with modern inventions throughout their lives. Cellphones and social media are fundamental to their personal and interpersonal relationships, which provide new personal and interpersonal relationships and define how they socialize with others.
The Gen Z demographic grew up with this type of connectivity, leading to patterns and practices innate to the digital age. These include using technology with ease for basic activities like learning, discovery, communication, and more.
Desire for community and connection
Given the sense of hyperconnectivity granted to these digital natives, it's no wonder that this generation also values and desires communal experiences. They seek out shared community spaces at home to satisfy their need for human connection in an increasingly digital world.
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Emphasis on sustainability
Younger generations are becoming more and more susceptible to climate crises and other environment-related woes, so they're more likely concerned about prioritizing sustainability in their lives. If they can afford to make eco-friendly choices throughout their lives, they will - which is why this value is incredibly associated with this demographic.
The upcoming renter market would likely choose green condo living to ensure a sustainable lifestyle. By making eco-friendly initiatives available to them, you can capture their attention and increase their investment in your property.
Flexibility and work-life balance
Since Gen Z is a demographic that makes use of tons of technology, it only makes sense that they take to hybrid work styles incredibly well. Now that they're looking for their own homes, this demographic is also looking for ways to integrate the flexible work-from-home lifestyle into their condos. This means having a strong in-house internet connection, potential co-working spaces within or outside their homes, and more.
Given all these values and characteristics, you might have a better idea of what this market will want when they choose to rent a condo. Continue on to the next section of this guide for more advice on what they look for from their future homes.
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Top condo-for-rent features for Gen Z
Curious about this growing demographic's preferences? Here are some relevant property features that this market is looking for from their pre-selling, fully-furnished, and rent-to-own homes.
Sustainable living options
As mentioned in the previous section, Gen Z values sustainability and eco-friendliness in their daily lives. So by offering sustainable living options at their future homes, you can capture their attention and ensure your real estate success with this demographic.
These living options can include simple upgrades like energy-efficient appliances that reduce costs, opt-ins for renewable energy sources, and simple waste management systems within the building. If your development is near public transport and bike-friendly infrastructure, these can be other key features to highlight for this wave of customers too.
Smart home integrations
Another set of features that you can highlight is your integrations for the digital age. Techy condo upgrades that you can use to attract renters include high-speed internet, smart appliances, and keyless security systems. You can also highlight building amenities like coworking spaces and app-based services to entice potential clients to your development.
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Vibrant amenities and social spaces
Gen Z is shaping the future of apartment life in a lot of ways - one of which is their desire for community and connection within and outside the home. By highlighting the vibrant social spaces within the development, like your rooftop gardens, outdoor recreation areas, lounges, game rooms, fitness centers, and other spaces for community interaction, you can attract this prospective market toward your condo's whole community.
Flexible lease terms and affordability
A young and upcoming demographic often requires flexible lease terms and affordable rates for a first big lifestyle expense like their condo rental. By giving options for short-term leases and co-living arrangements, you can attract more renters to your property. Transparent pricing models and reduced upfront costs can also entice potential clients, leading to a bigger tenant pool for your real estate.
This list of Gen Z preferences reflects the values and realities of condo living for this growing market. With proper navigation and research, you can gain great success renting properties out to this increasingly relevant tenant population.
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Where Gen Zs want a condo in the Philippines
The location of your property is always a huge factor when it comes to pursuing real estate success - and with Gen Z driving rental demand nowadays, a good location is becoming especially relevant to lessors and young renters alike. When you have a great location, you can promote its features to prospective tenants in need of an accessible and livable neighborhood in the metro.
In terms of location, the main things to consider when choosing a condo include its proximity to central business districts, universities, malls, and necessities like hospitals or grocery stores. It should also be close to public transportation hubs, or at least located within walkable neighborhoods. By balancing these urban convenience needs with an accessible and peaceful environment, you'll attract renters in need of the perfect rental home.
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Gen Z’s impact on condo rental contracts
With Gen Z paying more to rent than previous generations, this demographic is making waves in the real estate industry in bigger, more impactful ways. Here are some of the specific ways this market is affecting condo rentals.
Encouraging innovation in rentals
Digital natives are overtaking the housing market, so property managers have to keep up with their need for technological innovation. By driving the desire for modern condo innovations, Gen Z has inspired lessors to innovate their tools with more app-based property management and seamless digital experiences for tenants.
Driving sustainability and inclusivity
This generation’s rise in the housing market has also increased pressure on developers to drive and prioritize sustainable construction practices. They've increased the demand for eco-friendly condo designs, leading to greener innovations in the home development and condo rental markets.
Overall, this demographic is redefining the ways developers and lessors see the market, adapt their designs, and promote their properties. While many other rants and realities exist throughout the property rental industry, it's important for leaders and clients alike to adapt to these major changes over time.
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Promoting a condo unit in Manila to Gen Zs
This next wave of tenants is undeniably shaping the future of the rental market. Developers and landlords must design and market their products in line with the changes these new clients are bringing, to stay competitive and meet the demands of Gen Z renters today.
Technology, sustainability, and community are at the forefront of this demographic’s needs, so leaders like you must emphasize these values and characteristics in your line of work. By adapting your processes and terms to align with Gen Z’s expectations, you'll be able to maintain your success and improve your real estate investment in the long run.
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