Industry News | Wk of April 23
HOT & RELEVANT TOPICS
Rent Control Heading to California’s November Ballot
While talk of rent control has swirled in recent years, actually moving forward has been rendered nearly impossible due to several existing legal statutes in states across the country. But in California, proponents of rent control have gotten an initiative on the November ballot that could overturn the Costa-Hawkins Rental Housing Act. In its current form, the act disallows neighborhoods from limiting rent increases on any single-family home, condo or apartment built after 1995. Read Julie Littman’s article on Bisnow Bay Area.
Marketing to Multiple Generations
Perusing any multifamily publication over the past few years, one might believe that the country’s renter pool consisted only of millennials. While the generation does account for a significant part of the apartment population as the largest generation in the U.S. workforce, it would be shortsighted to market exclusively to the demographic. Boomers have shown an increased propensity to cash out of their homes and opt for the convenience of renting, Gen Xers remain in the fold and Gen Z will account for 33 percent of the global population by 2020. Read Eric Clark’s ViewPoint on Multi-Housing News.
Condo Deconversions Still Make A Lot Of Sense
While the market for condos isn’t exactly flat, demand for apartments is more brisk. That has led several investors to purchase condominiums and convert the buildings into standard apartments. The trend of deconversions could persist, particularly in larger urban locales such as Chicago, as long as apartment demand continues to match or outpace growth. A cooling market has the potential to disrupt or temporarily curtail the trend. Read Brian J. Rogal’s article on GlobeSt.com.
IN THE NEWS
Economy Watch: The Economic Impact of Google’s Data Centers
The potential impact of Amazon’s forthcoming H2Q in a yet-to-be-announced location has been a hot topic. More immediately relevant are the economic repercussions of Google’s six existing data centers, which were recently analyzed by Oxford Economics. The report found that in 2016 (the most recent full year of available metrics), the data centers generated $1.3 billion in economic activity, $750 million in labor income and 11,000 new jobs across the U.S. The report also noted that the data centers produced an economic impact well beyond the campuses themselves. Read D.C. Stribling’s article on Commercial Property Executive.
Falling Occupancy Rates Demand More Attention to Amenities and Service
When occupancy is high, apartment operators can concentrate on new development and growing rents. But as occupancy begins to cool in several regions across the country, it is becoming a renter’s market. That means properties have to do more to distinguish themselves than simply have availability. It also presents a unique opportunity for property managers to demonstrate their value not only to residents, but also to their owners by maintaining revenue goals amidst a fluctuating market. Proper amenities and heightened service levels help in this pursuit. Read Nat Kunes’ article in Multifamily Executive.
Faking it to make it
A pesky background check isn’t enough to stop some scammers from attempting to enter the apartment world. To these individuals, failing an initial background check just means it’s time to get more creative. And they’re doing so on a wide-scale basis, often by utilizing fake or altered identities (synthetic ID) or fake or altered pay stubs. These types of fraud are on the rise, causing apartment operators to further educate their leasing teams and adopt software that helps diagnose warning signs. Read Paul Willis’ article in UNITS Magazine.