More and more Millennials and Gen Zers are becoming residential real estate investors.
According to Bank of America, 80% of those between the ages of 21 and 42 are turning to real estate, private equity and other alternative investments over traditional stocks and bonds. Already 31% of Gen Z's retirement portfolios include real estate.
The reason is simple: 75% think that traditional investments won’t deliver the above-average returns that they are looking for.
At the same time, both generations place a premium on having the freedom and flexibility to pursue hobbies or side projects. They are also likely to be working full time and potentially living a long way from their investment properties. As a result, many young real estate investors, like this 29-year-old wedding guitarist and this 32-year-old vandweller, decide to outsource the day-to-day operations to a property management company.
With Millennials and Gen Z now a force to be reckoned with on both sides of the rental transaction, it pays to pay attention to their needs and wants. Both young renters and real estate investors are more likely to work with property managers that embrace technology as much as they do. Property managers who adapt their marketing strategies to appeal to these emerging generations of homebuyers could stand to gain even more.
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