The rise of Gen Z renters: What are they looking for in a city centre home?
By-lined to András Kárpáti (CEO, Cordia UK)
Unlike previous generations, Generation Z is choosing to rent rather than buy, drawn to the flexibility and reduced responsibilities that renting offers. This growing trend is the result of various factors, including greater freedom to explore their passions, travel, and build careers on their own terms without the burden of home ownership. Arbor Realty Trust also note that personal fulfilment is a top priority for Gen Z, and their lifestyle choices reflect this shift.
However, beyond the pursuit of fulfilment, there is a stark financial reality at play that can’t be ignored. As data from Barclays Property Insights highlights, skyrocketing housing costs, stagnant wages, and the widening gap between property prices and income are making homeownership increasingly out of reach for Gen Z. Renting has become not just a preference but a necessity for many, with Barclays reporting on 18th March 2025 that ‘rentflation’ has cost Gen Z renters an average of £1,616 over the past year.
So, what is truly driving this shift, and what does it mean for the future of renting for this generation? What is Gen Z really looking for in their housing, particularly in city centres?
Who is Gen Z?
To better understand and meet the needs of Generation Z, it is important to first know who they are. According to McKinsey & Company, Gen Z, born between 1996 and 2010, is the first generation to grow up fully immersed in the digital age. Shaped by climate anxiety, economic uncertainty, and the disruptive effects of COVID-19, their views on housing and lifestyle choices differ significantly from those of previous generations.
Affordability
Gen Z, now entering the workforce and navigating a challenging economic landscape, faces rising living costs, stagnant wages, and skyrocketing property prices, making homeownership increasingly out of reach.
According to recent research, 36% of Gen Z renters have seen their rents rise by £134.70 per month in the past six months (as of March 18th, 2025). With rents on the rise, many in this generation are turning to the rental market, seeking affordable housing options that balance flexibility and quality of life.
Cordia UK is reimagining the HMO concept with Gen Z in mind, focusing on shared living developments like Bradford Works. Set to become Birmingham’s first shared living scheme, it qualifies as affordable housing under West Midlands Combined Authority guidelines. Sustainability is central to the project, with 100% EPC A-rated, energy-efficient homes. The development will also be institutionally managed, following a Build-to-Rent model to ensure quality and long-term consistency.
This ensures that we’re meeting the evolving needs of today’s renters, including Gen Z, while contributing to vibrant city centre communities.
Access to amenities
The modern renter seeks more than just a place to live, they expect amenities like co-working spaces, gyms, cinema rooms, and concierge services, many of which are standard in BTR developments.
Cordia UK’s projects support the growing demand from Gen Z renters seeking more dynamic and flexible living spaces. The Lampworks, the developer’s upcoming 148-apartment BTR project, reflects the growing demand from Gen Z renters who expect technology to be seamlessly integrated into their living spaces. The property will feature landscaped courtyards, a co-working space, and individual meeting rooms, all equipped with modern designs and the latest technologies.
Gen Z’s demand for accessible amenities plays a significant role in the challenging rental market, as the British Property Foundation reports, driving the need for on-site features that enhance value and create a sense of getting more for their money. Bradford Works—Birmingham’s first shared living scheme will offer a multi-purpose fitness studio alongside a roof terrace, providing residents with a peaceful escape from the hustle and bustle of city life.
Environmental Consciousness
Environmental consciousness, particularly energy efficiency is a key consideration for property development, especially as Gen Z renters increasingly prioritise sustainability. The growing climate consciousness among Gen Z, combined with the ongoing rise in the cost of living and the energy price crisis, is driving a preference within this group for greener, more sustainable buildings to live in. As developers, it’s crucial to create low-carbon, energy-efficient homes that meet current needs while futureproofing them for long-term community benefit.
This shift in renter expectations reflects a wider trend across the industry, with institutional landlords setting clear climate goals and investing in more sustainable assets. Many are focused on improving energy performance, achieving green certifications, and upgrading existing stock to meet both regulatory demands and market expectations. For property developers, this presents a real opportunity to lead the way in delivering high-quality, future-ready homes.
Energy-efficient homes are becoming the norm, with new builds in the UK achieving far higher energy ratings than older properties. In fact, 85% of new builds are rated A or B, compared to just 4% of older homes, translating to up to 65% less energy consumption. This is vital as rising energy costs continue to burden renters.
Gen Z is more eco-conscious than previous generations, and they expect the places they live to reflect these values. In response to the growing demand for eco-conscious living, Cordia UK is increasingly prioritising sustainability certifications. For instance, the Bradford Works development is set to achieve a 100% A energy efficiency rating, reflecting renters’ expectations for greener living spaces, while The Lampworks will also provide some of the most energy efficient BTR apartments in Birmingham, using innovative solutions to maximise the capacity for and use of solar energy generated on site.
Beyond BTR, the housing sector in general is focused on sustainability. The UK’s Net Zero Carbon Buildings Standard is driving the shift toward truly sustainable homes that cut carbon emissions and address greenwashing. These efforts reflect a broader commitment to meeting Gen Z’s expectations for energy-efficient, eco-friendly living alongside growing sustainability initiatives driven by the goals of stakeholders in the housing sector, including landlords, property developers like Cordia UK, and local authorities, urban planners, and green technology providers.
Staying Connected: Build-To-Rent Projects and Shared Living
In Birmingham, 40% of the city’s vibrant, multicultural population is under 25, alongside a growing population of young people and high university retention rates. This fits in with the wider trend in the region, where young professionals, post-graduate students, and freelancers represent around 800,000 people in the Midlands,
Birmingham has become the epicentre of the UK’s BTR boom, driven by ongoing regeneration, enhanced infrastructure, and a growing reputation as a hub for business and culture. Gen Z renters, in particular, value the social aspects of BTR developments, with communal spaces that encourage interaction and a sense of community among residents. This focus on community has been prioritised post-covid, during which many young people described feelings of isolation and “lockdown loneliness” due to restrictions on movement and in-person gatherings.
Gen Z renters are increasingly seeking dynamic living spaces that seamlessly blend home, work, and leisure. They prioritise high-quality communal facilities that foster a sense of community, flexibility, and connection. Features such as co-working spaces, communal kitchens, lounges, and outdoor terraces have become essential in meeting their evolving needs.
This means that developers such as Cordia UK are placing a focus on combining modern residential apartments with commercial spaces, featuring versatile communal areas such as co-working zones, individual meeting rooms, and shared lounge and kitchen/dining spaces. These facilities must also be designed to create a collaborative and adaptable environment that aligns with the desires of today’s renters, which centre around community and flexibility.
In conclusion, Gen Z renters are reshaping the rental market with their demand for flexibility, affordability, and sustainability. As they seek dynamic living spaces that blend home, work, and leisure, developers must adapt by offering high-quality amenities, eco-conscious design, and community-focused environments. These trends are not just passing preferences but reflect a shift in lifestyle priorities that is shaping the future of housing.
The next generation of renters wants more than just a place to live—they desire spaces that reflect their values and support their diverse needs. From energy-efficient homes that meet sustainability standards to communal areas that foster connection and flexibility, and include accessible amenities, our developments must be designed to align with the evolving expectations of Gen Z. In doing so, we can ensure we provide lasting value and contribute to vibrant, future-proof communities.
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