INCOMING TENANT PROFILE: GEN Z
We love long-term buy and holds. As far as real estate investment strategies go, this one probably has the lowest “sexy” factor, but one of the best wealth-generating track records. It’s ok, we’re not looking to be the latest, hottest, sexiest thing. We’re in the game for long term financial freedom.
And if we’re thinking 10-20 years into the future, we think it’s time to learn a little bit more about the next generation of soon-to-be renters. Statistics Canada considers Gen Z, or Centennials, or Zoomers to be people born between 1997 to 2012 (currently ages 11 through 26). The more we learn about this cohort, the more we think it’s shaping up to be a really interesting group of people!
Gen Z is now the most diverse generation (race, country of origin, gender identity, etc…). Their social perspective on religions, cultures, and individual uniqueness is unparalleled. They have grown up as citizens of the “global village” due to the internet, global travel and immigration. This gives them a general curiousity and open-mindedness that has the potential to change the world.
Zoomers are coming of age during times of massive and constant change. Their perspective tends to be of a world with no guarantees. Through the schooling paradigms, social media, and digital connectedness, they are wired to be bold problem solvers, and tend to challenge the status quo, “why does it have to be that way?”
Many Gen Z people have a socially responsible identity, and an underlying desire to make a difference (to somehow positively impact the world). They will often lean into activism. Did you see today’s news about a BC behaviour scientist and his “Happy Climate Action?” https://bc.ctvnews.ca/what-is-happy-climate-action-a-b-c-academic-s-plan-to-protect-the-planet-and-spread-joy-1.6365662. This professor encourages people to ask themselves, “will this make me happier” and “will this reduce my emissions,” before they agree to anything. Huh, Gen Z in a nutshell.
Zoomers have only known life with tech, although the older ones didn’t have iphones as a baby! They value tech, and have been led to favour STEM career paths. They tend to consume IG and Youtube, rather than FB or TV. Consumer purchases tend to be influenced by social media but also by socially responsible brands. And many of them are currently pursuing career paths that didn’t exist a generation ago; with AI, their first jobs might be extinct in another generation, who knows?
Interestingly, this generation is showing signs of being highly motivated, almost obsessed by money. In a world experiencing phenomenal inflation, I guess we shouldn’t be surprised. Many are showing conservative spending habits, bordering on being debt-averse. On the flip-side, Zoomers also have a trend towards micro-entrepreneurship, to increase their income beyond payday. There is often anxiety about income, and housing insecurity. Many universities lack accommodation beyond first year students, so this insecurity begins very early (unlike millennials).
We are also fascinated that some of the research is showing that this group of young people clearly desires human connection in the workplace. Maybe a rebound effect of all the isolation felt during Covid? The 4-day-work-week concept fits nicely with their desire for flexibility, work-life balance, and a strong value for health and mental well-being. These young folks are reported to be less tolerant of authoritarian environments, but is that their age or their generation?
Combining several of these personality characteristics, our cohort is coming up with some creative housing solutions. Generation Rent shared a few housing stories of young Canadians in this article, https://www.cbc.ca/news/canada/nova-scotia/affordable-housing-young-canadians-unlocked-creator-network-1.6400360. One of our biggest takeaways here is that affordable housing options aren’t just a buzzword, they’re a necessity.
It’s a bit early to start studying Gen Z’s rental and home buying habits. The 2021 Census data showed ½ of the population in downtown Calgary is made up of millennials! https://www12.statcan.gc.ca/census-recensement/2021/as-sa/98-200-X/2021003/98-200-X2021003-eng.cfm I wonder what the stats will start to show in another 5-10 years? As we start to market to this age group, and “adopt” them as tenants, how can we best serve this generation in the years to come?
Interested in a little more depth?
https://www.thecanadianencyclopedia.ca/en/article/generation-z-in-canada
https://www.insiderintelligence.com/content/generation-z-canada-2021
https://ca.indeed.com/career-advice/finding-a-job/generation-z
https://www.rbc.com/newsroom/news/article.html?article=125727
