Meeting Millennial Residents’ Needs with PropTech Solutions

According to recent census data, millennials have overtaken baby boomers and are now the largest generational group in the United States. This cohort of over 70 million people is a dominant cultural and economic force with a spending power of over $2.5 trillion.¹ Better technology-based amenities, environmentally sustainable communities, and authentic cultural experiences are extremely important to this large demographic.²

Multifamily property owners and managers must look to adapt to meet the needs of this community of tech-savvy, online shoppers who are increasingly renting rather than buying their homes. Ensuring that millennials’ digital-first lifestyles are being well served, with property technology solutions like smart lockers and smart access control systems, should be top of mind for those trying to entice new and existing millennial residents into multifamily homes.³

The Largest Generation of Apartment Residents

At anywhere from 25 to 40 years old, millennials are technically in their prime home-buying years. But despite steady increases in buying rates, their rate of homeownership trails behind earlier generational groups like Generation X (who are 41 to 56 years old) by close to 20%.⁴ Since 2018, and with each passing year, accelerated by the pandemic and economic pressures like the rise in mortgage rates and the high price of housing stock, millennials are giving up on homeownership.⁵

An increasing number of millennials say they will never own a home. In 2021, 1-in-5 millennials viewed themselves as “always renters”, and in the first quarter of 2022, preliminary data shows that share growing to 1-in-4.⁶ As a result, millennials are increasingly known as “The Generation of Renters”. They can choose to live in the amenity-rich communities they prefer and have the flexibility to move when and where they want.⁷

More Millennial Residents = More Package Deliveries

“The Generation of Renters” values connectivity and convenience and these preferences are reflected in their shopping habits and their amenity preferences. During the pandemic, more than half (56%) of millennials shifted their shopping behavior from in-store to online. And as of 2022, that proportion has increased to four-in-five now doing most of their shopping on the internet.⁸

Consumers now place a minimum of 4 to 5 online orders every month, and more online orders translate to more packages.⁹ The result? Even more deliveries arrive at multifamily communities on a daily basis.

With online shopping now happening anywhere and anytime, property managers need safe and secure ways to ensure that deliveries successfully reach millennial residents in a way that is convenient, cost-effective, and built around their lifestyles.

Addressing Millennial Residents’ Needs with Parcel Locker Solutions

Properties may be drawn to adding more luxurious amenities such as pools or gyms to attract millennials, but the reality is that prospective residents are looking for services that deliver the connectivity and convenience that they expect from their living environment.

Practical and cost-effective solutions like parcel lockers and package rooms make an impactful difference in residents’ quality of life. These solutions deliver on two crucial fronts: first, they provide on-demand access to deliveries, and second, they ensure that delivered packages are stored safely and securely until they are ready to be retrieved.

On-Demand Access

The generation that excels at finding inexpensive ways to delegate everyday tasks (e.g., Washio, DoorDash, TaskRabbit) and unique ways to travel (e.g, Uber, Lyft, Airbnb, VRBO) does not want to wait in line at their property office for deliveries or worse – schedule their way around overtaxed off-site delivery services. Millennials buying online expect their purchases to ship quickly and arrive without any issues – and oftentimes expect there to be a mobile app that enables this convenience.

Smart locker solutions and secure package rooms allow up to 24/7 access for package deliveries and resident package pick-ups. Smart locker technology also means that residents are automatically notified when their package arrives. They can retrieve deliveries at their convenience, rather than having to check in at the leasing office or schedule a delivery time slot.

Security

With more millennials shopping online, package theft is also a concern – especially with many residents returning to the office and venturing out for other personal activities.

Smart locker solutions ensure deliveries are secured until residents can retrieve them. Residents can use a secure, 6-digit PIN or scan a unique barcode from their mobile device to access their deliveries. In fact, package pick-up typically takes less than 30 seconds.

Recent research conducted by the National Multifamily Housing Council (NMHC) shows that 73% of residents view secure, 24/7, self-serve access to packages as an essential amenity at their property.¹⁰ With on-demand access and the assurance that comes from knowing delivered packages will be safe and secure, multifamily properties can better meet the needs of their biggest resident cohort: millennials.

Ready to discover how our smart locker solutions can deliver MORE for your residents? Contact a Parcel Pending representative today.

Sources:

1. Mezzacca, Marc. Millennial Shopping Habits: Trend Report 2022. www.couponfollow.com. September 13, 2022.  https://couponfollow.com/research/millennial-shopping-report
2. Grubber, Johana. 5 Ways to Appeal to Millennial Renters and Sign Leases Faster. www.butterflymx.com. https://butterflymx.com/blog/appeal-to-millennials/
3. Warnock, Rob. Apartment List’s 2022 Millennial Homeownership Report. www.apartmentlist.com. April 21, 2022. https://www.apartmentlist.com/research/millennial-homeownership-2022
4. Ibid
5. Ibid
6. Ibid
7. Mezzacca, Marc. Millennial Shopping Habits: Trend Report 2022. www.couponfollow.com. September 13, 2022.  https://couponfollow.com/research/millennial-shopping-report
8. Parcel Pending. Off-Site Package Delivery Services: The Challenges of an Analog Solution in Today’s Digital World. www.parcelpending.com. https://www.parcelpending.com/blog/off-site-package-delivery-services-the-challenges-of-an-analog-solution-in-todays-digital-world/
9. NMHC/Grace Hill. 2022 Renter Preferences Survey Report. www.nmhc.org. January 18, 2022. https://www.nmhc.org/residents