Based on data from around 5.6 million apartments offered for rent between June 2023 and May 2024, Zillow Group, Inc. ZG has uncovered key insights into rental upgrades made by Millennials and Gen Z adults. These affordable, non-permanent upgrades allow renters to add a personal touch to the rented space, making it feel like their own and adding value to their landlord.
ZG results: A win-win situation for tenants and landlords
Temporary home improvements are a win-win for both renters and landlords. Projects like upgrading cabinet hardware, adding open shelving, or integrating smart lighting are inexpensive and often yield significant returns in the form of more views, saves, and shares on Zillow Rentals. For landlords, these improvements can make a rental property more attractive to prospective renters, while renters benefit from a more personalized living space.
Zillow’s research highlights several renter-friendly improvements that are effective in improving rental listing visibility. For example, rental listings with open shelving are saved 36% more often per day than those without, and smart lighting can increase daily savings by 22% and daily shares by 35%. These statistics underscore the value of small but impactful changes renters can make to improve their living environment.
The financial accessibility of these improvements further supports their popularity among renters. Many of these projects, such as replacing closet hardware or hanging mirrors, cost less than $1,000, suggesting that these improvements are both affordable and doable for most renters.
What benefit does ZG want to gain from the research study?
Zillow’s platform directly benefits from these trends. As renters increasingly look for properties that allow for personalization, listings that highlight renter-friendly features are likely to generate more interest. This, in turn, drives more traffic to the Zillow site, improving its visibility and appeal to renters and landlords. Additionally, by providing data-driven insights into home features that boost rental listing performance, Zillow is positioning itself as a valuable resource for renters looking to improve their living space.
These insights also help refine Zillow’s marketing strategies and tailor its offerings to the evolving needs of renters. As more renters value the opportunity for temporary improvements, Zillow can promote listings that highlight these features, further cementing its position as a leader in the rental market.
ZG Zacks Rank and Other Stocks to Consider
Zillow currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks, Inc. ANET, which currently has a Zacks Rank #1, is likely to benefit from the strong momentum and diversification of its key verticals and product lines. The company takes a software-driven, data-centric approach to help customers build their cloud architecture and improve their cloud experiences. Arista expects long-term earnings growth of 17.2% and has delivered an average earnings surprise of 15% over the past four quarters.
The company holds a leading position in 100 Gigabit Ethernet port switching for the high-speed data center segment. Arista is gaining market presence in 200 and 400 Gigabit high-performance switching products. With proactive platforms and predictive operations, the company is well positioned for healthy growth in the data-driven cloud networking business.
AudioCodes Ltd. AUDC currently has a Zacks Rank of 2. Over the past four quarters, it has delivered an average earnings surprise of 10.1%.
Headquartered in Lod, Israel, AudioCodes provides advanced communications software, products and productivity solutions for the digital workplace. The company offers a wide range of innovative products, solutions and services used by major multinational companies and leading Tier 1 operators around the world.
Airgain, Inc. AIRG currently has a Zacks Rank of 2. The long-term earnings growth expectation is 35%.
Based in San Diego, California, Airgain provides integrated wireless solutions in the form of antenna products. These products are designed to meet critical connectivity requirements in both the design process and the operational environment in the enterprise, automotive and consumer markets. Airgain’s customizable antennas are ideal for original equipment manufacturers and design manufacturers, vertical markets, chipset vendors, service providers, value-added resellers and software developers worldwide, addressing both indoor and outdoor connectivity challenges.
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