Gen Z renters seem to be moving to areas that are primarily attractive tourist destinations. What cities are experiencing the boost in 2022?
Table of Contents
- What Is Gen Z? Explaining Travel Trends
- 20 Leading Cities for Gen Z Renters
- The Perks of Renting Out Property to Gen Z
- Cities for Gen Z Renters: Summing Up
Looking at the numbers, interest in destinations suitable for young people between the ages of 17 and 25 continues to increase. The US real estate market witnessed a 21% jump in rents by the so-called Zoomer Generation—young people born between 1997 and 2012.
As COVID-19 subsides, a large number of Gen Z travel enthusiasts are taking the favorable situation to move away from their suburban homes and seek opportunities in the big city.
Today, our focus will be on younger people in their 20s, and we’ve been able to single out the 20 most popular cities for Gen Z renters.
Continue scrolling to find out what’s on the radar for renters who belong to “Gen Z years” and where they will be searching for accommodation in 2022.
What Is Gen Z? Explaining Travel Trends
Are you among the real estate investors trying to shift their focus to younger generations and attract Gen Z guests and renters to stay on their property? If that’s the case, it would be helpful to start off with a few words about the said generation’s travel trends and expectations and discuss how they differ from Millennials.
One thing to note straight away is that Zoomers and travel enthusiasts see both sides to the story we are trying to emphasize here. They’re aware of the benefits that traveling brings to the local communities they reside in and the personal satisfaction that comes with visiting new places.
Enjoyment and a constant search for entertainment are two inevitable factors for the young people in the Gen Z age range.
As we’ve previously mentioned, “Zoomers” is a younger generation of people born between 1997 and 2012. Now that you’re aware of their age range—the oldest among them turn 25 in 2022—it’s evident that they’ll be highly motivated to change their current residences, be it for school, work, or simply a vacation.
What’s also important to note is that such young adults are interested in mixing luxury with a predetermined budget. They are well aware of the changes happening in the housing market and will gladly take advantage of a favorable situation if that allows them to move to a luxurious location at an affordable price. In short, they won’t hesitate to fulfill their wishes.
Now, what does it mean for you?
Well, suppose their stay turns out to be satisfactory. In such a case, it could mean they’ll be more willing to return—and that automatically means boosting the popularity of an investment property and helping the investor generate revenue.
How are they different from the so-called Gen M or Millennials?
Millennials generally report “taking time off work” and “spending quality time with their family” as the most common reasons for going on trips. Undoubtedly, there’s a much higher sense of responsibility involved with such a group of renters.
While Millennials are focusing on family and pet-friendly accommodation, “Zoomers” seem to be on the lookout for affordable luxury with guaranteed fun.
Related: The Millennial Effect on the Real Estate Market
20 Leading Cities for Gen Z Renters
Gen Z renters definitely took the US housing market by storm with their motivation and drive for travel. Let’s see which cities they’d be most interested in, according to recent reports:
1. Davis, CA
- % Gen Z Renters in the Area: 69%
- Number of Listings for Sale: 5
- Median Property Price: $781,472
- Average Price per Square Foot: $462
- Number of Traditional Listings: 145
- Monthly Traditional Rental Income: $2,684
- Traditional Cash on Cash Return: 95%
- Traditional Cap Rate: 97%
- Price to Rent Ratio: 24
- Days on Market: 57
- Walk Score: 46
2. Boulder, CO
- % Gen Z Renters in the Area: 66%
- Number of Listings for Sale: 45
- Median Property Price: $1,428,333
- Average Price per Square Foot: $673
- Number of Traditional Listings: 518
- Monthly Traditional Rental Income: $2,552
- Traditional Cash on Cash Return: 97%
- Traditional Cap Rate: 99%
- Price to Rent Ratio: 47
- Days on Market: 38
- Walk Score: 49
Related: Colorado Housing Market Forecast 2022
3. Conway, AR
- % Gen Z Renters in the Area: 59%
- Number of Listings for Sale: 59
- Median Property Price: $305,616
- Average Price per Square Foot: $142
- Number of Traditional Listings: 87
- Monthly Traditional Rental Income: $1,111
- Traditional Cash on Cash Return: 14%
- Traditional Cap Rate: 22%
- Price to Rent Ratio: 23
- Days on Market: 93
- Walk Score: 74
4. Lynchburg, VA
- % Gen Z Renters in the Area: 58%
- Number of Listings for Sale: 131
- Median Property Price: $251,451
- Average Price per Square Foot: $145
- Number of Traditional Listings: 214
- Monthly Traditional Rental Income: $951
- Traditional Cash on Cash Return: 86%
- Traditional Cap Rate: 94%
- Price to Rent Ratio: 22
- Days on Market: 52
- Walk Score: 81
5. Bloomington, IN
- % Gen Z Renters in the Area: 57%
- Number of Listings for Sale: 234
- Median Property Price: $462,205
- Average Price per Square Foot: $228
- Number of Traditional Listings: 681
- Monthly Traditional Rental Income: $1,342
- Traditional Cash on Cash Return: 67%
- Traditional Cap Rate: 72%
- Price to Rent Ratio: 29
- Days on Market: 164
- Walk Score: 31
6. Ankeny, IA
- % Gen Z Renters in the Area: 49%
- Number of Listings for Sale: 212
- Median Property Price: $352,034
- Average Price per Square Foot: $224
- Number of Traditional Listings: 0
- Monthly Traditional Rental Income: $1,613
- Traditional Cash on Cash Return: 12%
- Traditional Cap Rate: 18%
- Price to Rent Ratio: 18
- Days on Market: 125
- Walk Score: 73
7. Kenosha, WI
- % Gen Z Renters in the Area: 48%
- Number of Listings for Sale: 14
- Median Property Price: $245,880
- Average Price per Square Foot: $179
- Number of Traditional Listings: 13
- Monthly Traditional Rental Income: $1,188
- Traditional Cash on Cash Return: 53%
- Traditional Cap Rate: 64%
- Price to Rent Ratio: 17
- Days on Market: 25
- Walk Score: 54
8. Jonesboro, AR
- % Gen Z Renters in the Area: 48%
- Number of Listings for Sale: 63
- Median Property Price: $305,993
- Average Price per Square Foot: $116
- Number of Traditional Listings: 103
- Monthly Traditional Rental Income: $1,270
- Traditional Cash on Cash Return: 30%
- Traditional Cap Rate: 43%
- Price to Rent Ratio: 20
- Days on Market: 50
- Walk Score: 21
9. Fayetteville, AR
- % Gen Z Renters in the Area: 48%
- Number of Listings for Sale: 76
- Median Property Price: $731,917
- Average Price per Square Foot: $250
- Number of Traditional Listings: 932
- Monthly Traditional Rental Income: $1,547
- Traditional Cash on Cash Return: 61%
- Traditional Cap Rate: 65%
- Price to Rent Ratio: 39
- Days on Market: 79
- Walk Score: 48
10. Denton, TX
- % Gen Z renters in the area: 47%
- Number of Listings for Sale: 176
- Median Property Price: $428,966
- Average Price per Square Foot: $206
- Number of Traditional Listings: 759
- Monthly Traditional Rental Income: $1,635
- Traditional Cash on Cash Return: 67%
- Traditional Cap Rate: 71%
- Price to Rent Ratio: 22
- Days on Market: 43
- Walk Score: 43
11. Lincoln, NE
- % Gen Z Renters in the Area: 47%
- Number of Listings for Sale: 76
- Median Property Price: $364,723
- Average Price per Square Foot: $210
- Number of Traditional Listings: 105
- Monthly Traditional Rental Income: $1,006
- Traditional Cash on Cash Return: 51%
- Traditional Cap Rate: 53%
- Price to Rent Ratio: 29
- Days on Market: 61
- Walk Score: 45
12. Lubbock, TX
- % Gen Z renters in the area: 46%
- Number of Listings for Sale: 281
- Median Property Price: $345,613
- Average Price per Square Foot: $147
- Number of Traditional Listings: 1,143
- Monthly Traditional Rental Income: $1,311
- Traditional Cash on Cash Return: 88%
- Traditional Cap Rate: 95%
- Price to Rent Ratio: 22
- Days on Market: 41
- Walk Score: 32
13. Columbia, MO
- % Gen Z renters in the area: 46%
- Number of Listings for Sale: 453
- Median Property Price: $250,004
- Average Price per Square Foot: $138
- Number of Traditional Listings: 105
- Monthly Traditional Rental Income: N/A
- Traditional Cash on Cash Return: N/A
- Traditional Cap Rate: N/A
- Price to Rent Ratio: N/A
- Days on Market: 36
- Walk Score: N/A
14. Tyler, TX
- % Gen Z renters in the area: 46%
- Number of Listings for Sale: 180
- Median Property Price: $434,504
- Average Price per Square Foot: $186
- Number of Traditional Listings: 167
- Monthly Traditional Rental Income: $1,504
- Traditional Cash on Cash Return: 05%
- Traditional Cap Rate: 12%
- Price to Rent Ratio: 24
- Days on Market: 70
- Walk Score: 80
15. San Marcos, CA
- % Gen Z renters in the area: 45%
- Number of Listings for Sale: 26
- Median Property Price: $893,369
- Average Price per Square Foot: $485
- Number of Traditional Listings: 47
- Monthly Traditional Rental Income: $2,806
- Traditional Cash on Cash Return: 61%
- Traditional Cap Rate: 63%
- Price to Rent Ratio: 27
- Days on Market: 66
- Walk Score: 67
16. Kalamazoo, MI
- % Gen Z renters in the area: 45%
- Number of Listings for Sale: 126
- Median Property Price: $366,919
- Average Price per Square Foot: $174
- Number of Traditional Listings: 198
- Monthly Traditional Rental Income: $1,089
- Traditional Cash on Cash Return: 41%
- Traditional Cap Rate: 48%
- Price to Rent Ratio: 28
- Days on Market: 50
- Walk Score: 39
17. Topeka, KS
- % Gen Z renters in the area: 45%
- Number of Listings for Sale: 44
- Median Property Price: $270,912
- Average Price per Square Foot: $135
- Number of Traditional Listings: 17
- Monthly Traditional Rental Income: $1,052
- Traditional Cash on Cash Return: 71%
- Traditional Cap Rate: 88%
- Price to Rent Ratio: 21
- Days on Market: 44
- Walk Score: 72
18. Tempe, AZ
- % Gen Z renters in the area: 45%
- Number of Listings for Sale: 82
- Median Property Price: $611,435
- Average Price per Square Foot: $352
- Number of Traditional Listings: 932
- Monthly Traditional Rental Income: $1,709
- Traditional Cash on Cash Return: 49%
- Traditional Cap Rate: 52%
- Price to Rent Ratio: 30
- Days on Market: 58
- Walk Score: 50
19. Springfield, MO
- % Gen Z renters in the area: 42%
- Number of Listings for Sale: 204
- Median Property Price: $333,202
- Average Price per Square Foot: $142
- Number of Traditional Listings: 18
- Monthly Traditional Rental Income: $1,074
- Traditional Cash on Cash Return: 70%
- Traditional Cap Rate: 82%
- Price to Rent Ratio: 26
- Days on Market: 58
- Walk Score: 28
20. Clarksville, TN
- % Gen Z renters in the area: 42%
- Number of Listings for Sale: 301
- Median Property Price: $346,738
- Average Price per Square Foot: $173
- Number of Traditional Listings: 809
- Monthly Traditional Rental Income: $1,236
- Traditional Cash on Cash Return: 96%
- Traditional Cap Rate: 01%
- Price to Rent Ratio: 23
- Days on Market: 80
- Walk Score: 77
How can you acquire up-to-date information like the above?
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Related: How to Get Access to Airbnb Data Analytics
Use Mashvisor to find the latest property data and calculate the profitability of your short-term investments.
The Perks of Renting Out Property to Gen Z
Despite the information we provided above, you may still be entertaining second thoughts regarding renting out your property to the Zoomer Generation. And of course, you should take time to evaluate the pros and cons—but let us weigh in with our professional opinion.
The real estate market is an ever-changing field, and renting your apartment to Generation Z renters brings the following benefits.
If there’s anything you can count on regarding the said population group, it’s their flexibility. They’ll more easily come to terms with your property-related requirements because their focus is primarily on finding good entertainment at an affordable price.
What’s great about the said generation is that they’re actively keeping up with all the happenings online. It’s their second nature. So, as investors and hosts, you don’t need to worry about not being seen or acknowledged. If your investment property comes with a good reputation, there’s no way that it will go unnoticed by Gen Z renters.
However, before you decide to make your rental property attractive to people in the Gen Z age range, you should learn more about how to invest in real estate first.
Cities for Gen Z Renters: Summing Up
We’ve successfully gone through the 20 most desirable locations for Generation Z renters. Now, let’s use our final words to look back at some of the essential points regarding the Gen Z age group and their traveling and moving habits.
Gen Z’s shown it is capable of prompting a change in the real estate market structure, allowing investors to get back in the game. Investors can expect a high return on investment in the areas we’ve listed above, including Davis, Bloomington, and San Marcos.
If you’re taken by the numbers we’ve pointed out and want to find the best place to buy rental property, you should definitely consider the options we’ve outlined above. For more guidance in your investing journey, check out Mashvisor. Choose the plan that best suits your investor needs—and get started.