If you haven’t heard by now, Generation Z makes up 25% of the U.S. population. That means a quarter of the U.S. was born in the mid-nineties to early 2000’s. Gen-Z is unique; they are full of ideas, higher conscious levels and essentially want to save the world.
One huge component of our world that Gen-Z is changing is the way we look at our day to day living and the size of our homes. Tiny houses, anyone? Let’s take a look.
Micro-apartments are becoming more and more popular among Gen-Z. The reason for this is Gen-Z seeks a modern and modest living arrangement, versus a traditional rental. They find micro-apartments and micro homes much more sensible, for both their lives and environmental reasons.
These small homes are around 80 square feet and are extremely popular because they emphasize on lifestyle over space. Renters worry less about costly utility or rent and can focus on the essential things, like living in the best location in the city at a lower cost and having everything they need from their home.
Since there has been such a noticeable spike in micro home popularity, developers and city planners are struggling to make room for more micro apartments in substantially overcrowded metropolitan cities like Denver, LA, and New York City. Several of these micro-unit developments are expected to open within a few years, which will most likely see occupancy rates maxed out almost immediately after completion.
Micro-units are great for investors and developers because they are easy and quick to build. There is much less upfront cost than full-size apartments, and they can fit more units in one building.
Communal living is also being highly used by Gen-Z. Co-living is basically like living in a dorm, but for adults. Each tenant has their own room with their own bed, but instead of having their own kitchen, or living room, these areas are shared. You may ask yourself WHY someone would want to share common areas, but for Gen-Z, it makes complete sense. Not only do you get free utilities, washer and dryer, wifi and sometimes fully furnished housing, but you also get a community of creative and cool individuals to interact with daily.
According to Inc.com, communal living is becoming so popular, that one of the top communal housings called Common has a vacancy rate of less than 1%, and every one of their buildings nationwide is cash-flow positive. No one is ever in a rush to leave either. The renewal rate for traditional multi-family units is 58%; while Common’s rate is 72%.
These types of living situations are entirely opposite of what previous generations are used to, but from the looks of it, it’s working. It seems that people are getting tired of having too many unnecessary things and space they don’t use, as well as being isolated by living alone. What are your thoughts on this type of living and how will it affect your multi-unit? Let us know below!