Industry News | Wk of Feb 26
HOT & RELEVANT TOPICS
Major Apartment Developer: ‘There is an acute crisis headed our way’
The luxury apartment market is extremely overbuilt, and it’s causing a potential crisis within the industry. With a record-high cost of construction, from land to labor, developers are struggling to afford – and provide – anything less than luxury. The affordable housing shortage struggle is real. And in the middle and lower income markets, people are spending proportionally more on rent, which gives a significant push to the impending crisis. Read Diana Olick’s article on CNBC.
Digital Displays Make Responsive, Attractive Buildings – On the Cheap
Apartment operators aiming for a strategic edge without breaking the bank are starting to incorporate digital displays at their communities. Unlike the past when billboards were relatively static displays, digital displays designed with the right audience in mind can yield high viewer interest. Ideas for digital displays at apartment communities include a lobby resident directory, elevator touch-to-go, visitor management console and rotating art display. Read Roshni Shah’s article on Propmodo.
Five Things You Must Include in Your Pet Policy
The debate about whether pet rent is a legitimate charge is starting to escalate in the industry, but there is no disputing that apartment operators must have some parameters in place regarding pets. Laura Calugar lists five musts, including having an actual policy of some sort, a firm definition of species and breeds allowed at the community, a requirement for vaccinations, required pet deposit and the flexibility to modify the policy when necessary. Read Calugar’s blog on Multi-Housing News.
IN THE NEWS
Three Reasons Multifamily Developers Should Focus on Baby Boomer Renters
It is no secret that Baby Boomers have reentered the multifamily marketplace, as many are cashing out on their houses and opting for a simpler lifestyle with no mortgage payments or yard work. Developers not only should refrain from ignoring this demographic, but also target it. That’s because Boomers are the largest growing resident profile, are less rent-burdened and have a low rate of turnover. Read Susan Tjarksen’s article in Forbes.
Suburbs Heat Up as Downtown Rents Cool
Rents in the urban core may be flattening, but apartment living in suburbia is heating up. Post-recession, it has been all about building brand new luxury apartments downtown. But the country’s next wave of growth has been in secondary, tertiary and suburban markets, and some developers have been meeting the demand. Once viewed as a symbol of 1970s and ‘80s urban flight, these surrounding markets have become cool again. Read Joe Bousquin’s article on Multifamily Executive.
Economy Watch: Robust Economic Growth Ahead in First Half of 2018
The Conference Board’s Leading Economic Index for the U.S. indicates robust economic growth for the first half of 2018. The Index has been consistently increasing since November, and the strongest economy indicators for 2018 are coming from residential construction, as well as financial conditions, manufacturing and labor markets. The board reported that the Consumer Confidence and Expectations indexes continue to climb. Read D.C. Stribling’s piece on Multi-Housing News.