Zillow Data Offers Rental Upgrade Insights: Beneficial for ZG Stock?

Leveraging data collected from about 5.6 million homes listed for rent between June 2023 and May 2024, Zillow Group, Inc. ZG has come up with key insights for rental upgrades that are taken by Millennials and Gen Z adults. These affordable, non-permanent upgrades allow renters to add a personal touch to the rented space to make it feel like their own and add value for their landlord.

ZG Findings: A Win-Win for Renters & Landlords

Temporary home improvements offer a win-win scenario for both renters and landlords. Projects such as updating cabinet hardware, adding open shelving or incorporating smart lighting are cost-effective and often yield significant returns in terms of increased views, saves and shares on Zillow Rentals. For landlords, these improvements can make a rental property more attractive to potential tenants, while renters benefit from a more personalized living space.

Zillow's research highlights several renter-friendly improvements that are effective in boosting the visibility of rental listings. For instance, rental listings with open shelving receive 36% more saves per day than those without, and smart lighting can increase daily saves by 22% and daily shares by 35%. These statistics underscore the value of small but impactful changes that renters can make to enhance their living environment.

The financial accessibility of these upgrades further supports their popularity among renters. Many of these projects, such as swapping out cabinet hardware or hanging mirrors, cost less than $1,000, suggesting that these enhancements are both affordable and manageable for most renters.

How ZG Aims to Benefit From the Research Study?

Zillow's platform benefits directly from these trends. As renters increasingly seek out properties that allow for personalization, listings that highlight renter-friendly features are likely to see increased engagement. This, in turn, drives more traffic to Zillow's site, improving its visibility and appeal to both renters and landlords. In addition, by providing data-driven insights into which home features boost rental listing performance, Zillow positions itself as a valuable resource for renters looking to enhance their living spaces.

These insights also help fine-tune Zillow's marketing strategies, helping it tailor its offerings to meet the evolving needs of renters. As more renters prioritize the ability to make temporary improvements, Zillow can promote listings that highlight these features, further solidifying its position as a leader in the rental market.

ZG Zacks Rank & Other Stocks to Consider

Zillow currently carries a Zacks Rank #2 (Buy).

Arista Networks, Inc. ANET, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experiences. Arista has a long-term earnings growth expectation of 17.2% and delivered an earnings surprise of 15%, on average, in the trailing four quarters.

It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products. It is well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

AudioCodes Ltd. AUDC currently carries a Zacks Rank #2. It delivered an earnings surprise of 10.1%, on average, in the trailing four quarters.

Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.

Airgain, Inc. AIRG currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 35%.

Headquartered in San Diego, CA, Airgain offers integrated wireless solutions in the form of antenna products. These products are equipped to solve critical connectivity needs in both the design process and the operating environment across the enterprise, automotive and consumer markets. Ideal for original equipment and design manufacturers, vertical markets, chipset vendors, service providers, value-added resellers and software developers worldwide, the customizable antennas from Airgain serve both indoor and outdoor connectivity issues.

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