Why Gen Z renters rent, what they want from renting and how operators are attracting them.
It seemed like a natural progression of life. Finish school, move out of the parents’ house to an apartment, then eventually purchase a dream home.
That isn’t necessarily the desired path for those of Generation Z...
“Gen Z on the Lease,” a recent Entrata report produced in collaboration with Qualtrics, offers a detailed look into the preferences and ambitions of Gen Z renters—and homeownership doesn’t appear to be a high priority. The report, based upon a survey of 2,000 renters, found that 72% of Gen Z renters view renting as a smarter choice and better financial approach than homeownership.
With that in mind, rental housing operators would be wise to cater efforts toward this subset, which largely views renting as more than a temporary option. Members of Gen Z (born from 1997 to 2012) are already firmly amidst the rental landscape, of course, but many more will be arriving in the next decade—along with their unique preferences.
“Attracting and retaining Gen Z renters requires an ecosystem that combines technology-first convenience, authenticity and values-driven brand experiences,” said Whitney Kidd, Senior Vice President of Innovation and Technology at Preiss, a North Carolina-based multifamily and student housing operator. “This generation doesn’t just lease an apartment—they expect to lease a lifestyle.”
Why Gen Z prefers to rent
To Kidd’s point, 63% of respondents indicated they prioritize a technology-first experience, including digital leasing and app-based communication, when choosing where to live. Additionally, 83% said they prioritize experiences over ownership, noting that leasing better enables them to save money for life experiences. More specifically, 45% indicated they prioritize travel and career growth over buying a home.
Another factor contributing to Gen Z’s rent-centric perspective is that homeownership is becoming less attainable—particularly for younger generations. Today’s increased interest rates aren’t meteoric from a historical perspective but are exceedingly high when compared to the lower rates that arrived in the aftermath of the Great Recession in 2008. Pair that with a difficult housing market in which prices continue to climb due to a lack of new inventory in many key markets, and it’s easy to see why younger generations prefer the relative non-constraints of renting when compared to a 30-year mortgage.
Freedom from maintenance is another significant factor, as 37% of respondents said they prefer the convenience of on-call maintenance rather than handling home repairs themselves.
How operators should approach Gen Z
Kidd and her Preiss colleagues have worked diligently to understand Gen Z’s expectations, which differ vastly from older renters with simpler expectations. As such, the company aims to create a mobile-first living experience.
“Gen Z expects seamless, app-based control over their environment—from leasing to unlocking doors, managing guests and submitting work orders,” Kidd said. “We’ve leaned into this concept with mobile credentialing, Apple Wallet integration and self-guided tours, which directly align with their expectations for speed and convenience.”
Gen Z’s penchant for a tech-enabled experience goes beyond smart home automation, Kidd said. They crave an integrated experience, AI-enabled support and seamless automation. Gen Z individuals also prefer brands that communicate with transparency and empathy, she said.
“Purpose-driven engagement, such as sustainability, inclusivity and mental wellness, matter deeply to Gen Z,” she said. “Communities that align with these values are more likely to keep Gen Z engaged beyond the lease.”
Amenities and services
While resort-style swimming pools and engaging resident events might be flashy, they don’t always rate highly on the Gen Z importance meter. Asset Living, the nation’s largest third-party operator of student housing, has a firm pulse of the types of amenities and services that genuinely matter to this demographic.
“Gen Z renters are drawn to modern, well-designed spaces with features that make life easier and more social,” said Alex Abernathy, Executive Vice President of Marketing for Asset Living. “In-unit laundry, smart access controls and strong bulk Wi-Fi are now considered standard, not luxuries.”
Community-wide amenities like co-working lounges, coffee bars and outdoor gathering spaces remain popular, Abernathy said, “but what really sets communities apart are curated experiences and services that feel thoughtful and elevated, offered in a way that reflects each community’s unique identity.”
Having a special event means more than a pizza party in the lobby or clubroom. “Gen Z values events that are intentional, inclusive and [worthy of sharing on social media],” Abernathy said. “Whether it’s a wellness-themed pool party, a sourced matcha bar or a custom hat station, the most successful events offer both community and shareable moments.” Such events should always be optional, according to Kidd.
“They crave connection, but on their terms,” she said. “Events, digital communities and shared experiences should be opt-in, not forced.”
Wellness-related spaces also are appealing to Gen Z renters. While fitness centers are an expectation at nearly any rental community, these renters desire accompanying wellness-
oriented spaces, such as meditation rooms and yoga spaces.
Challenges
Gen Z has grown up with smartphones and on-demand everything, so they expect technology to work seamlessly in all aspects of their lives, including where they live. Beyond convenience, technology also needs to feel personal and responsive, according to Jessica Mancuso, Vice President of Student New Development for Asset Living.
“One of the biggest challenges is living up to the highly curated digital experience Gen Z expects,” Mancuso said. “They’re accustomed to receiving instant responses, transparent information and polished branding online. If the post-lease experience doesn’t match that energy, satisfaction can quickly dip.”
For instance, if communication becomes inconsistent or service requests fall through the cracks, Mancuso said, it creates friction from a generation that isn’t afraid to call out any shortcomings—often publicly.
“This generation brings us back to the basics where ‘the customer is always right,’” Mancuso said. “They want everything from lightning-fast Wi-Fi to sustainability commitments and inclusive community vibes—and they want it all to feel genuine. That means teams need to be proactive, responsive and constantly listening. The communities that succeed aren’t just reacting to issues. They’re creating feedback loops, building trust through consistency and evolving in real time.”
Another challenge cited by operators is balancing Gen Z’s high expectations with operational realities. If the leasing process promises digital ease but the move-in experience is manual or outdated, dissatisfaction sets in quickly. Additionally, they often have little patience for operational delays and inefficiency. Slow maintenance, unclear communication or clunky interfaces quickly impact perception, according to Kidd.
They can also become fatigued from overmarketing and experience burnout from overcommunication, she said.
“They’re adept at spotting inauthenticity,” Kidd said. “Leasing and marketing strategies must reflect genuine values, cultural awareness and real community engagement. And while communication is critical, irrelevant or too-frequent messages can backfire.”
Bottom line
Where Gen Z individuals want to live—and what they view as attainable—is remarkably different from preceding generations. And this digital-first demographic has more idiosyncrasies than perhaps any of its predecessors.
It puts the onus on rental housing operators to provide a tech-centric, autonomous living experience, in addition to a brand that inspires trust and feels authentic to these renters. That’s especially true when considering that 59% of Gen Z respondents view renting as a way to enjoy the freedom to live life on their terms, while only 41% see it as a steppingstone to homeownership.
“When technology is thoughtfully integrated, it builds trust and shows that the property understands how Gen Z navigates the world,” Mancuso said. “Pair that with a strong brand identity, inclusive community engagement and a high standard of service, and you have a winning formula for attracting and retaining this generation.”
Paul Willis is a Content Director for LinnellTaylor Marketing.