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Key Takeaways
Millennials are the dominant renter demographic: Economic pressures and lifestyle preferences are driving Millennials to rent longer, making them a crucial target audience for multifamily operators.
Affordability and flexibility are key drivers: High home prices and a desire for mobility are leading Millennials to prioritize renting.
Millennials have high expectations: They seek digital-first experiences, smart home amenities, community and sustainable living options.
Tech-forward properties are essential: To attract and retain Millennial renters, operators must offer seamless digital leasing, smart home features and online services.
SmartRent aligns with Millennial values: By providing app-based control, self-service options and sustainability-focused features, SmartRent helps properties meet Millennial expectations and gain a competitive edge.
Millennials were once expected to dominate homeownership by their 30s. Instead, they’re fueling a surge in rental housing across the U.S., and reshaping what it means to rent.
Millennials, now between the ages of 27 and 43, are forming families, building careers and seeking stable, quality living situations. But economic pressures, including rising home prices, high interest rates and persistent student debt, are making homeownership increasingly out of reach. As a result, Millennials are renting longer and demanding more from their rental experience.
For multifamily operators, this is more than a temporary shift. It’s a long-term opportunity to adapt, evolve and win.
What’s fueling millennial rental demand?
Several forces are driving Millennials to rent longer than previous generations:
Affordability challenges: Homeownership is increasingly out of reach for Millennials. According to the Urban Institute, over 70% of Millennials cite affordability (from steep down payments to soaring mortgage rates) as the primary barrier to buying a home.
Lifestyle flexibility: Many Millennials prioritize freedom of movement, urban convenience and low-maintenance living. Renting allows them to change jobs, explore cities or upsize without the long-term commitment of homeownership.
Improved rental options: The quality of rental housing has improved dramatically. New builds feature high-end finishes, better layouts and desirable amenities that make long-term renting not just acceptable, but appealing.
What Millennials expect from their rental experience
Unlike generations past, Millennials aren’t settling for basic living arrangements. They want a home that reflects their values, supports their routines and simplifies their lives.
Here’s what today’s Millennial renters are looking for:
Digital-first interactions: Online leasing, mobile rent payments, in-app maintenance requests, etc. are fundamental.
Smart home amenities: From keyless entry to climate control, convenience and control are paramount.
Community and connection: A sense of belonging matters—but with autonomy and privacy.
Sustainability and efficiency: Eco-conscious renters value energy-saving features and responsible management.
Why operators need a tech-forward strategy now
It’s no longer enough to offer a stylish clubhouse or upgraded finishes. Millennials expect a seamless, digital living experience that fits into their mobile-first lives. Properties that don’t deliver risk being filtered out, often before a tour is even scheduled.
Tech-forward properties, by contrast, are better positioned to:
Attract high-intent leads through modern, digital leasing experiences
Improve satisfaction with self-service, on-demand support
Streamline operations and reduce staff burden through automation
Smart tech isn’t just a perk, it’s becoming the price of entry in the multifamily industry.
How smart technology helps meet Millennial needs
Millennials expect their homes to work seamlessly with their lives, and smart technology plays a key role in meeting that demand. From app-based leasing to device control, modern renters want tools that offer flexibility, personalization and efficiency.
Smart home features like thermostats, keyless entry and leak detection help residents feel more in control of their space while supporting convenience and peace of mind. Mobile apps that centralize payments, maintenance requests and smart device access allow renters to manage their home the same way they manage the rest of their lives: from their phone. Self-guided tour options and app-based guest access offer added freedom and privacy, while sustainability-focused tools like smart lighting and water sensors contribute to energy efficiency—an increasingly important factor for eco-conscious renters.
By implementing technology that simplifies daily life, enhances security and aligns with sustainability values, multifamily communities can better attract and retain today’s Millennial renters.
Looking ahead: Millennials and the future of multifamily success
Millennials are the largest generation in U.S. history—and they’re shaping the future of housing. As they continue to delay homeownership, multifamily properties must evolve to serve this group for the long term.
Meeting Millennial expectations isn’t just good service, it’s a fundamental pillar of growth. A tech-forward, resident-first approach supports retention, lowers turnover and helps communities stand out in a crowded market.
With renters navigating an abundance of choices, smart technology stands as the defining advantage for modern properties.
The real opportunity is now
Millennials aren’t just a temporary boost to rental demand. They’re redefining what it means to rent, and properties that adapt will lead.
Operators who align with Millennial values—flexibility, digital convenience and sustainable living—will be best positioned to attract and retain this powerful renter base.
Ready to align with the future of renting? Schedule a SmartRent demo and discover how our technology helps you get (and stay) ahead.