Zillow Group, Inc. (ZG) has uncovered a trend among Millennials and Gen Z renters – they are embracing affordable upgrades to personalize their rented spaces. This trend has emerged after analyzing data from 5.6 million homes listed for rent between June 2023 and May 2024.
These upgrades, while temporary, offer a win-win situation for both renters and landlords. Renters benefit from having a living space that feels more like their own, while landlords find that properties with these upgrades attract more potential tenants. Examples of these popular upgrades include updating cabinet hardware, adding open shelving, and incorporating smart lighting.
The study revealed that rental listings with open shelving see a 36% increase in daily saves compared to those without, while smart lighting can boost daily saves by 22% and daily shares by 35%. These statistics highlight the significant impact that even small changes can have on the visibility and desirability of rental properties.
The financial accessibility of these upgrades makes them even more attractive. Many of the projects, such as replacing cabinet hardware or hanging mirrors, can be completed for under $1,000. This affordability ensures that these enhancements are manageable for most renters.
Zillow directly benefits from this trend. As renters prioritize personalized living spaces, they are more likely to engage with listings featuring renter-friendly features. This increased engagement drives more traffic to Zillow’s platform, enhancing its visibility and appeal to both renters and landlords.
Furthermore, Zillow positions itself as a valuable resource by providing data-driven insights into which home features contribute to successful rental listings. These insights allow Zillow to tailor its marketing strategies to meet the evolving needs of renters. As the demand for temporary home improvements grows, Zillow can promote listings that highlight these features, further strengthening its position as a leader in the rental market.
