How Gen Z Renters are Changing Multifamily Marketing Norms
An emerging story in the multifamily industry is the coming of age of Generation Z, the largest in American history, and their strong preference to rent instead of buy for financial and lifestyle reasons.
They’re also changing how multifamily marketers highlight their apartment communities.
RealPage’s 2023 National Multifamily Renter Study shows that Gen Z renters will use multiple non-traditional marketing tools to find their next apartments.
While establishing a multifamily marketing strategy that follows the typical leasing funnel is still beneficial, communities whose ideal renter profile skews toward the Gen Z age gap may need to look beyond just websites, PPC advertising, and Internet Listing Services to get attention. Here’s why.
Gen Z renters see right through the Internet Listing Service model.
Having spent so much of their life already using phones, social media apps, or shopping online, they’ve developed an innate knowledge of how online marketing works..
When searching for an apartment, specifically, they see right through the Internet Listing Service model.
Younger renters know that apartment communities featured as the top listing on those comparison websites paid to gain that placement, not necessarily earning it because it’s the best option.
In RealPage’s study, only 39% of Gen Z renters say they would rely on an Internet Listing Service during their apartment search—the lowest among all other age groups cited (younger and older millennials, Gen X).
Gen Z’s unique distinction from other renter groups is their desire for authentic online experiences less controlled by how much advertisers pay but by where, how, and when a product catches their attention.
For communities that commonly attract Gen Z renters, creating authenticity in your online marketing presentation may be more impactful than simply paying for the top packages on multiple ILS websites.
Don’t be afraid to grow alternative organic sources, like your social media pages, to connect younger renters to your apartments.
Gen Z renters are comfortable searching for apartments with AI technology.
Another distinction between Gen Z renters and other age groups is their preference to utilize artificial intelligence tools during their apartment search.
In the study, 23% of Gen Z renters say they are comfortable asking questions and communicating through an online chat (presumably with a chatbot), while 9% would compare apartment communities from an AI-generated search like Google’s Bard or ChatGPT.
Chatbots are becoming a staple of apartment community websites. Though chatbots present some design and user experience problems to the website itself, it’s hard to ignore their impact on leasing teams. Chatbots enable 24/7 leasing communication and, when appropriately utilized, help leasing agents prioritize stronger leads over others.
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Since chatbots are also a familiar tool to what is about to become the largest generation of renters in history, the benefits of adding one to your website may outweigh the drawbacks related to design and user experience for this demographic.
Regarding AI-generated search, there’s understandably some concern among multifamily marketers about their communities’ visibility in search results.
Apartment marketers generally attempt to gain more visibility online by targeting specific, relevant keywords for their communities’ digital advertising campaigns, like ‘pet-friendly apartments in Denver’, because that is a very typical search term a prospective resident may use.
An AI search is typically more conversational by nature. For example, a prospective resident using AI may enter (or speak) a search prompt like “Show me two top-rated apartment communities in Denver that allow large breed dogs.”
Why the difference? Unlike a regular search engine results page, which ranks relevant links to websites that are most relevant to the searcher’s query, AI is capable of processing multiple variations of search results in accordance with what the searcher wants.
Below is an example result from Bard.
As you can see, Bard uses the searcher’s prompt to influence how it shows results, showing two separate communities that allow large breed dogs in Denver. While AI-generated search tools are relatively new, the way they’re able to cater searches and results that cut through traditional models, like Google’s standard search, matches the level of control Gen Z renters crave as they look for an apartment to rent.
But take heart—it still relies on information and content directly from essential elements like a community’s website, Google Business Profile, and targeted keywords in marketing messaging. Don’t change what you’re doing with those things!
Gen Z renters prefer real testimonials.
Lastly, 27% of Gen Z renters in the RealPage study have a higher preference than other age groups to want to talk, text, or message a current tenant about their living experience in your apartment communities.
This aligns somewhat with how younger renters see through the ILS model; they also see through ‘sales-y’ marketing messaging.
It’s also probably why 24% of Gen Z renters would attend an event at your apartment community to mingle with current residents and assess the property.
A real testimonial from a current resident is far more authentic and influential to younger renters as they decide which apartment community is best.
From a marketing perspective, capturing the interest of Gen Z renters relies on letting actual customers do some of the selling for you by featuring them on your community’s website or in its social media strategy.
Summary
Gen Z renters are changing multifamily marketing norms by valuing authenticity, embracing AI technology, and placing a high emphasis on real testimonials when searching for apartments.
Multifamily marketers must adapt their strategies to cater to these preferences to effectively attract and engage this demographic—the largest group of renters in United States history.
Source: RentVision
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