CREJ

Page 22 — Multifamily Properties Quarterly — May 2021 www.crej.com L iving in big coastal cities might be the dream for some genera- tions, but certainly not for Gen Z, one of the most important players in the U.S. real estate market. According to a recent study from RentCafé based on analysis of over 3 million rental applications, Gen Zers are heading toward small towns in the heartland, attracted by the affordable cost of living and the local scene that promises stability and authenticity. The COVID-19 pandemic might have had a role to play in Gen Z’s location preferences as most recent graduates are embracing remote work, thus making it easier for them to choose more affordable markets that are closer to home. In contrast, prepandemic graduates were mov- ing to cities where they had access to more job opportunities. For Gen Z’s, the possibility of a wider pool of job opportunities does no longer suffice. In order for cities to be appealing to this generation, they would have to provide affordable prices, state-of-the- art access to tech- nology, as well as proximity to natural amenities. The study also shows that this generation is the fastest-growing active renter cohort in the country, having increased its share by 36% in 2020 compared with 2019. At the same time, the share of other genera- tions decreased. n Top trendiest cities for Gen Z renters . With a considerable increase of 84% in the share of Gen Z, Greenville, North Carolina, is the top trendiest U.S. loca- tion for the youngest generation of renters. This college town, the only one in the top, saw its share climb from 19% in 2019 to 35% in 2020. It’s followed by Little Rock and North Little Rock in Arkansas, with a change in share of 70% and 63%, respectively. Given the average apartment rents of $800 and plenty of job opportunities, it’s easy to see why these two cities are ranking so high in the top. Proving that big cities are not Gen Zers cup of tea is the fact that even the largest cities in this list are actu- ally midsized. Columbus, Ohio, is the largest one, ranking 20th with a popu- Boulder sees nation’s highest share of Gen Z renters Florentina Sarac Research analyst and real estate writer, RentCafé Market Trends Please see Sarac, Page 38