Industry News | Wk of March 18
HOT & RELEVANT TOPICS
For Gen Z, Word of Mouth is Even Louder
Gen Z often gets lumped in with millennials when talking about younger generations. But this generation (born 1996 or later) is not simply a continuation of its predecessor. Gen Z fundamentally relies on word of mouth, whether offline or online, more than any preceding generation. Several statistics from recent Chatter Matters surveys underscore that notion, including that 48 percent of the demographic has made a second-hand word-of-mouth recommendation and that 86 percent read reviews before making a first-time purchase. Read Paul Bergeron’s article in UNITS Magazine.
Real Estate Developers Are Now Designing With Instagram in Mind
Using bold colors, wow moments and lobby lighting designed to make anyone look 10 years younger are concepts designers are starting to employ regularly. While developers have been slow to embrace social media from a design standpoint, this fits into the entire Instagram mold. “It’s all about over-the-top symmetry and graphic marbles – all of it meant to fit in a vertical frame and look great on a cellphone,” designer Ryan Korban said. Read Heidi Mitchell’s article in Fortune.
The Affordable Housing Conundrum for Multifamily
Over and over, we continue to hear about the critical nature of affordable housing. Our first responders and other blue-collar jobs are priced out of many metro markets, and solving the crisis seems to be on the to-do list of numerous politicians in every election cycle. Yet the crisis remains. The solution could be rooted in balancing affordability and desires, reduced move-in costs, co-living and workforce housing with scaled-back perks, according to Samantha Chalmers. Read Chalmers’ blog.
IN THE NEWS
2020: What’s Next For Apartment Tech
Technology in multifamily is evolving swiftly, much like nearly two decades prior when concepts such as automated credit screening and web-based property management systems became industry game-changers. In 2019, it’s apparent that recently unveiled concepts such as AI, smart-home devices and short-term rentals will have a vast influence on the industry moving forward. Among the findings of a recent white paper is that 70 percent of rental-housing operators plan to transition to a new PMS or upgrade by 2020. Read Donald Davidoff’s article in UNITS Magazine.
Multifamily Developers Continue to Target Cities With Highly Educated Workforces
As wealthier, higher-educated individuals show a continued penchant for renting, apartment construction follows them despite concerns of overbuilding in these markets. Cities that fit the high-income, highly educated mold, such as Boston, Seattle and Stamford, Conn., have experienced the highest share of new apartment starts since 2010. Areas, where 50 to 60 percent of the population is college educated, experienced a 22-percent uptick of new starts in that span. That’s compared to 4 percent in areas where 10 to 20 percent of the population is college educated. Read the article in National Real Estate Investor.
Micro-Unit Multifamily Units Sell
For Record Price Per SF
Wilshire Capital recently purchased two micro-unit multifamily buildings – one each in Seattle and Portland – for a record $24.2 million. The sale price marks the highest ever for micro-units in those respective markets on a square-foot basis. Like many developers, Wilshire Capital, which made the purchase from U.K.-based East to West Capital, is likely banking on the micro-unit phenomenon. These buildings, which typically feature shared common space, have been generating higher revenue per square foot than traditional apartments. Read Shawna De La Rosa’s article in Bisnow.