Industry News | Wk of May 7
HOT & RELEVANT TOPICS
Intelligent Machines Will Teach Us – Not Replace Us
As technology produces chatbots and other intelligent machines, many are leery of losing their jobs to artificial intelligence. In actuality, the opposite should be the case according to former world chess champion Garry Kasparov, who believes embracing these technologies paves the way for humans to move up the ladder to management. “We’re not being he replaced,” he writes. “We’re being promoted.” He also ascertains that the new generation of artificial intelligence will provide knowledge, not just results. Read Kasparov’s article in The Wall Street Journal.
Embracing Tech May Be The Best Way To Cut Construction Costs
Construction costs were already on the rise before the recent implementation of a 25 percent steel tariff by the new Presidential administration. With materials continuing to serve as potential budget-breakers, developers are beginning to plan tech additions early in the development stage as opposed to when the project is well underway. This planning allows developers to future-proof buildings and treat digital technology in construction as a convergence of sustainability, wellness and technology. Read Chuck Sudo’s article in Bisnow Chicago.
How to Eliminate the Burden of Manual Screening
Removing the cumbersome step of manual screening can lead to greater efficiencies for apartment communities. Manual checks are a time-consuming process, as leasing agents commonly have to call previous employers and property managers. Realizing this, Alliance Residential performed a case study on its properties that used manual checks, comparing those to communities that utilized automated rental payment history through Experian Rent Bureau. Alliance discovered that bad debt was 15 percent higher at communities that used the manual process. Read about the case study in the May issue of UNITS Magazine.
IN THE NEWS
Speaking of Tech Trends
In an effort to become more attractive to residents and to ease the burden of routine community-related tasks, apartment communities are beginning to embrace voice-activated technology and natural language software. While the concepts remain cutting-edge, forward-thinking apartment operators have started to incorporate these technologies into their communities. That includes linking
home-share devices such as Alexa to centralized property management systems, allowing for a greater array of voice-command options. Read Chase Harrington’s article in UNITS Magazine.
Airbnb Cost NYC Renters $616 Million in 2016 Alone
According to a city report from New York City Comptroller Scott Stringer, Airbnb’s presence significantly push rents in the city – by $616 million in 2016 alone. According to the report, three neighborhoods (Chelsea, Greenwich Village and Soho) experienced a 20 percent rent hike. Stringer indicated that many affordable apartments in NYC never hit the market because they were making a profit for Airbnb. Meanwhile, Airbnb disputed the findings, saying the methodology was flawed and the results inaccurate. Read Miriam Hall’s article in Bisnow New York.
Why Some Developers Say There’s Still Room to Run
Downturn? What downturn? While some developers might consider curtailing their ambitions strategies, others remain bullish on the market. LMC, for instance, has averaged about 6,000 starts the past few years and expects to maintain that pace for the foreseeable future. Bainbridge, meanwhile, has maintained sturdy confidence in its target markets. While strategies certainly can shift, the industry as a whole has yet to see a significant decline in development. Read Stephen Ursery’s article in Multifamily Edevelopxecutive.