Given the choice to live in Alexandria, Arlington or the District of Columbia, recent college graduates are choosing to live in Alexandria, according to an analysis of rental applications by RentCafé.
The oldest members of Generation Z — or Gen Z — are about 25 years old now. Many are out of college and those who have the means are living independently.
Chris Cruz fro Visit Alexandria
Gen Z includes those who were born between about 1997 and 2012; they are now ages 10 to 25. More recently, they’ve been referred to as “Zoomers,” as the coronavirus pandemic put the conferencing software in the middle of Gen Z members’ education and early professional life.
"Our findings show Alexandria and Arlington are two of the trendiest Zoomer hotspots of 2022," according to RentCafé. According to the company’s analysis of more than 3.2 million apartment applications:
Alexandria witnessed a 37% increase in the share of rental applications submitted by Zoomers, who moved into a new apartment in 2021, after spending a one-year hiatus back home or in their college towns. This impressive migration of young and tech-savvy apartment-dwellers is giving the city a much-needed glow-up, as it ranks 13th among the top 20 trendiest Gen Z hubs in the country.
At the metro level, D.C. has seen a 31% increase in the share of Gen Z renters, year over year, which is less than either Alexandria or Arlington.
WHAT’S BEHIND THE ATTRACTIVENESS OF ALEXANDRIA?
While the D.C. metro area is among the most expensive in the country for housing costs, Alexandria does seem to be slightly more affordable than the District. According to RentCafé, the average cost of an apartment in the District is $2,261. (Arlington County is even more expensive than the District, on average.) Meanwhile, the average cost of an apartment in Alexandria is $1,944. And the average size of an apartment in Alexandria is bigger, too.
Safety is also becoming a factor for Gen Z renters, said Warren Wright, founder and CEO of Second Wave Learning, a local company that focuses on professional and life skills development for young professionals. “Crime is increasing rapidly in urban areas, including D.C.,” Wright noted. “Everybody knows it and Gen Z is tuned in because of their orientation with school shootings and a general paranoia culture — this will keep them out of the big cities where crime happens.”
In addition to price, early 20-somethings are looking for a few key things that Alexandria seems to offer when they search for their first apartments: Apartments in areas that are particularly walkable, high-speed Internet, privacy and flexibility, and being in close proximity to work, Multihousing News reports. RentCafé also reports that outdoor spaces are valued by these renters.
“Gen Z wants to be part of a community,” Wright said. “That means living around their friends, walkable places, areas to hangout, eat, shop, etc.” Further, the work-from-home economy, pushed forward by the COVID-19 pandemic, is giving young professionals more flexibility in where they live. “The Gen Zs in the professional, service-oriented jobs can work from their computer at home, so commercial zones are being hollowed out,” Wright said. “NYC and San Francisco and many cities are struggling with depleted tenants in traditional commercial zones. So, I would say that D.C. is more vulnerable than Alexandria in that sense.”
These community and convenience-focused amenities are exactly what many of the new rental developments in Alexandria are offering from Old Town North to Eisenhower East (and the new Carlyle Crossing) to the West End.
WALKABILITY
Many of the newest apartment buildings in Alexandria are strategically placed close to grocery stores, restaurants and conveniences. When the Gables at 530 First Street opened, Edens promised a variety of retail stores at ground level. In addition, there are two grocery stores within three-tenths of a mile (Trader Joe’s and Harris Teeter), easy access to multiple parks and the Braddock Metro station just a half-mile east.
Other new developments are following suit. Instead of just building a Wegmans in the new Carlyle Crossing development in Eisenhower East, Stonebridge also developed three new multifamily housing towers within the complex. The buildings offer a range of amenities, of course, but location was key to the development’s success. In addition to easy access to the grocery store, there are multiple restaurants with a quarter-mile, two Metro stations within a half-mile and easy access to the I-495 Beltway.
The proliferation of housing communities in Potomac Yard is following a similar pattern: The newest buildings in the Potomac Yard neighborhood are strategically located near grocery stores and the new Metro stations (the Potomac Yard station should open later this year), and there’s a strong emphasis on walkability. Members of Gen Z seem to have a particular fondness for Target, according to C+R Research — and the Potomac Yard Target is one of the company’s most profitable.
With retail, restaurants and grocery stores close by in walkable neighborhoods, these members of Gen Z could easily go a week without needing a personal vehicle for anything. But ironically, for all the emphasis local officials put on public transportation, “Above all community amenities, most of them want a guaranteed parking spot,” according to RentCafé.
WORK-ABILITY
Working “from home” — even as many companies recall workers to the office — is a critical part of marketing for potential Gen Z renters. Several rental communities are offering more than just superfast wi-fi in its units, with many offering rentable conference rooms equipped with high-tech remote meeting capabilities.
Several offer common work areas, printers and monitors for home-based workers to use outside their actual apartment units. The Foundry, which opened in Eisenhower East in early 2020, encourages residents to “enjoy our modern take on what it means to head to the office, a large warehouse-inspired, open lobby space with co-working and conversation spaces, all complete with hi-speed Wi-Fi, a printing station, and a 24/7 coffee bar with Nitro Cold Brew on tap. Sit by the window or the cozy fireplace, grab a conference table or lounge in our lobby library.”
Adedayo Dayo Kosoko for Visit Alexandria
WELLNESS AND OUTDOOR SPACES
Renters — and even would-be buyers — are looking for outdoor spaces, said McEnearney Associates, Inc. Realtor Christine Robinson. “They want green space,” she’s found. “For example, if they’re a runner, they’ll want to be near a place they can run safely.”
New complexes like The Blake in Alexandria’s West End, which opened this spring, boasts more than stainless steel kitchen appliances and big windows. The apartment complex offers “outdoors-in amenities,” which include a resort-style pool with grills, open-air spaces on the ground floor, landscaped courtyards, a fitness center, yoga studio and pet spa. The Stonebridge Carlyle Crossing development (the Easton, Dylan and Reese communities adjacent to Wegmans), features a private, 3-acre landscaped park just for residents. The complex also features a rooftop pool and lounge area.
GEN Z GROWS UP: LONG-TERM WANTS
Of course, not all young college graduates are on their own and renting. Nationwide, young adults are living at home with their parents at a rate similar to the 1880s, according to the Pew Foundation. About one-third of young adults are living with their parents.
Student loan debt is partly responsible for this trend. And Northern Virginia happens to be a very expensive place to rent or to buy property. Overall, however, members of Gen Z really want to own their own home — someday. Their desire to own a home seems to be higher than those of the Millennial generation that came before them (people who are now around ages 26 to 41).
“They definitely are dialed into the aspect of purchasing,” Robinson said. “A lot of people wrongly assume under 30 are not interested in buying, but I don’t think that’s true. I just think they’re in a different stage of life.” That different stage in life does affect their choice in where to live. A lot of Gen Z members are looking for outdoor space, safe neighborhoods and a short commute to work, Robinson said.
According to real estate financing company Rocket Homes, “Gen Zers’ desire to purchase a home primarily stems from the fact that they view homeownership as a means of starting a family (27.2%), gaining the freedom necessary to do what they want with their home (25.5%) and building wealth (13.2%).”
Whether they can afford a home, particularly in areas where real estate prices are skyrocketing, is something that gives member of this generation pause.
“Generation Z seems so eager to become homeowners that even those who stated they don’t want to buy their own home appear to have said so because they doubt their actual ability to afford one: 40% of those members who don’t want to buy a home said their primary reason was that they don’t think they’ll have enough money,” Rocket Homes reported. Robinson said, however, that an important part of what she does is help would-be buyers navigate the many first-time buyer and other grant and assistance programs available. “They want to learn and they’re actively engaged in moving forward toward their goal,” she said.
