Gen Z basement-dwellers are fleeing the nest again

New data from Zillow.com suggests more Generation Z young adults are leaving the comfort and stability of a friend's or family member's home and moving out on their own.

The trend is emerging even as the COVID-19 pandemic continues to surge across America - hampering economic opportunity and creating persistent public health risks in crowded communities and elsewhere.

Gen Z adults - age 18 to 25 - have been attracted to rent promotions and better lifestyle options in making the jump from a friend's, parent's or other family member's home.

The Zillow analysis found:

• More than a third of Gen Z renters who moved in the past year say they moved out of a friend or family member's home, up from 20 percent in the spring.
• A majority of Gen Z renters (57 percent) said a better deal on rent was the reason for their move.
• Rental concessions or special promotions helped motivate nearly half (49 percent) of those who moved.

Zillow notes that concessions can mean big savings for renters - a signifiant draw during periods of economic uncertainty.  Typical concessions in major cities such as Boston, Chicago, Indianapolis, New York, Philadelphia and Washington, D.C. can mean two months free rent on a minimum year-long lease. That's more than a 16 percent discount.

Earlier findings from Zillow research in September found fewer young adults were living with parents or grandparents in the late summer and early fall, after rising dramatically in the spring. That trend is continuing, according to Zillow's most recent study.

The biggest winners are young adult renters who locked down for the pandemic with a parent or family member, and were able to bank reserve cash because their employment continued - even as the jobless rate skyrocketed nationwide during much of 2020.

"The effective savings rate is what renters would save on their typical housing costs over the course of their lease because of both lower rent prices and concessions," said Zillow economist Joshua Clark, in a press release explaining the November report. "Those savings could be enough to cover the cost difference between a one-bedroom and a two-bedroom unit. Plus, if these Gen Z renters who moved home retained their jobs through the pandemic, they've likely saved enough to afford a larger or more desirable apartment."

Gen Z renters are a desirable and active market segment for the more dynamic, lifestyle-oriented and amenity-heavy apartment communities in and around major economic centers.

Boston-based Redgate, one of that region's leading developers of such properties, has created dynamic lifestyle options for the younger professional demographic in Massachusetts communities such as Somerville, Quincy, Chelsea and Revere. After launching 500 Ocean Avenue along historic Revere Beach - which features breathtaking ocean views and the popular Dryft restaurant - the company is now developing a project called Ryder, which is aimed squarely at that Gen Z demographic as well as slightly older millennials.

Ryder will feature outdoor murals commissioned through local artists, an artist-community focus, direct beach access and premier on-site dining.

Pandemic economics are impacting the rental market in other ways - particulalry in locations such as New York City. With an exodus of residents tied to COVID-19 or the ability to live cheaper elsewhere and work Manhattan-based jobs remotely, rent prices have declined in the Big Apple to their lowest levels since 2011, according to the Zillow-owned apartment rental site StreetEasy.

That has allowed millennials who previously had to double- and triple-up on a place to find their own apartments in New York - a rare upside to the public health crisis that has roiled the city for months.

Follow American Household News to learn more about how people are living in cities across the U.S.

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