Changing Renter Demographics: How Leaders in Multifamily are Innovating 1 year ago

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The only thing that’s constant is change

How people work and live has been changing dramatically over the last two decades.

PricewaterhouseCoopers stated in their Talent Mobility 2020 report, “Our data reveals that assignee levels have increased by 25% over the last decade; we predict a further 50% growth in assignments by 2020 (see Figure 1). There will be more assignees, more business travel, more virtual tools, and especially more quick, short-term, and commuter assignments.”

Source: PwC, Talent Mobility 2020

Since 2000, the number of renter-occupied housing has increased by 1-3 million units across every age group; Boomers and Millennials have driven the biggest gains.

These are fundamental lifestyle changes. And it’s spurring a new type of renter need: fully-furnished accommodations that make home life easier and more convenient for the resident, regardless of their tenancy length.

“The demand for furnished apartments is on the rise. Though furnished accommodations have been targeted primarily to business professionals or people in transition, the landscape has now changed. The renting generation is being infused with both millennials and baby boomers who are choosing a new renting lifestyle.”
– Brooke Furniture Rental

Source: Brooke Furniture Rental

No Room at the Inn

The problem with these new, growing needs was that rental properties and operators were not well set up to meet them. Operators have caps on the number of traditional corporate housing units in any building due to a lack of transparency and risk associated with those types of leases.

“People might assume it’s really easy to get a fully furnished, corporate apartment. It’s not. The supply is very limited, as are our internal resources for managing corporate units. Urbandoor is solving this elegantly and Lincoln Property Co. is a part of that.”
– Sheri Killingsworth, Lincoln Property Co.

Source: The Highland Group.
Note: Survey methodology different after 2001. Data not available for 2003 and 2004.

To get around inventory constraints, there’s been a rise in businesses and individuals that circumvent property owners/operators, risking community safeguards.

Co-creating a Better Way

Urbandoor addresses the changing needs of renters with the Multifamily industry. Owners/operators have full transparency and temporary residents meet community standards owners/operators set.

“Urbandoor provides direct access to furnished demand, especially from companies, that we haven’t had before. We have full transparency into the renter and it’s helping us effectively manage frictional vacancy [i.e., the gaps between long-term unfurnished leases]. Plus, there’s absolutely no risk.”
– Young Hill, Greystar

By tying into vacancy, pricing, and rent expirations, Urbandoor can increase the overall supply of furnished apartments and eliminate supply chain waste. Both factors contribute to downward pressure on price, making furnished apartments accessible to more people.

The growth in the last few quarters of this type of inventory on Urbandoor has been tremendous (450%). These are not mere listings. These are instantly bookable apartments. No other marketplace has this.

“Urbandoor is enabling an entirely new marketplace. A place to shop and buy the accommodation, as well as serves as the hub and backstop for demand and supply. They are not a referral or lead engine. They are a lease engine that is helping Multifamily serve a growing renter need and drive our business with full transparency. It’s an exciting time.”
– Sarah Gencarella, Olympus Property

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