1. What does it mean when the rental office is eliminated at an apartment complex?

2. How do permanently working from home residents change how we renovate?

3. Will affordable housing proposals ever drive the building of more housing?

4. How do we reposition our properties to take advantage of the “Z Driven Tsunami”?

GEN Z DRIVES DEMAND

Historically, the big wave of new renters came from those 18 – 25-year-old young adults leaving home and starting to function independently from their parents. Generation Z will be the driving force for rental housing for at least the next two decades. They tend, though, not to be following the historic “rules”!

They are digital natives. Their “go to” communication is text rather than talk (so in-person leasing agents lose some value). Surfing the web for news and commentary replaces the reading of newspapers and magazines…and apartment magazines! They avoid those vendors stuck in the 20 th Century.

Gen Z has unlimited opportunities to expend their time and money in a digitized world with few geographic restrictions. “Home” can become less of a physical place and evolve toward an ongoing process of shared experiences with friends (and some family).

AFFORDABLE HOUSING

Without massive tax increases to fund new initiatives – fat chance in our current political environment – efforts to make rental housing more affordable / friendly / flexible will come from states and local government.

RENTAL OFFICE DISAPPEARS

A Utah based firm is converting some of their rental offices into community centers. Reflecting the needs of the Gen Z, the leasing agent role evolves into a concierge for the residents, available 24/7 by text / email / online. Prospective tenants obtain from an on-site kiosk a pre-arranged short term pass card to access the model (or targeted vacant unit) and to tour gym/pool/dog wash area/party room.

WORK FROM HOME CONSIDERATIONS

A closed rental office can be redesigned to serve as a place for those tenants working at home to have a drop off/pick up location for packages and to use for business meetings. When renovating units, add a built-in desk. The once adored “open concept” becomes less appealing in a time when privacy and noise avoidance are workday issues.

BOTTOM LINE

Rental housing will continue to be an ideal place to be investing for current cash flow. Debt is no longer cheap – so renters are not leaving for buying homes – demand remains steady, and development continues to run behind need to replace dated facilities.