Awareness of the affordable housing crisis has grown exponentially inside of industry circles. Unfortunately, public awareness is still woefully low and solutions to the problem have yet to manifest. A new organization lead by Ron Terwilliger will collect data that can guide policymakers towards crisis resolution. Simultaneously, the data will help to protect the most vulnerable victims of the affordable housing crisis, America’s youth and seniors. “A legacy of the great recession, the rental affordability crisis is often overlooked by policymakers, ignored by the media, and underestimated, at best, by the general public,” announced Ron Terwilliger, former CEO of Trammell Crow Residential. Terwilliger reports that three-fourths of federal spending for housing supports homeowners, who generally have more than twice the income of renters. In contrast, federal rental assistance remains underfunded and only one-fourth of those in need are eligible for support. Of those in need, a growing number are seniors and children. Many people who cannot secure affordable housing face homelessness. Child homelessness is at a historic high. America’s Youngest Outcasts reports that homelessness impacts nearly 1 in every 30 children in the nation. This denotes an 8 percent increase in child homelessness between 2012 and 2013. The study ranked all 50 states according to the number of homeless children reported in the area.   Causes for child homelessness include high poverty rates and a lack of affordable housing. “Living in shelters, neighbors’ basements, cars, campgrounds, and worse—homeless children are the most invisible and neglected individuals in our society,” begins Dr. Carmela DeCandia, director of The National Center on Family Homelessness. “Without decisive action now, the federal goal of ending childhood homelessness by 2020 will soon be out of reach.” Seniors are also silent victims of the affordable housing crisis. The number of seniors...

The present is the most challenging time in 50 years for renting affordable and adequate housing. Historically low homeownership rates, the rising number of renters fueled by demographic and cultural shifts, increasing rents, a dearth of supply, growing construction costs, high levels of unemployment and underemployment and stagnant incomes have all converged to a critical point. Over 50 percent of American renters are now rent-burdened, up from approximately 40 percent in in 2000, according to the U.S Census Bureau’s American Community Survey 2000-2011. The U.S. Department of Housing and Urban Development (HUD) defines a rental unit affordable if the gross rent, comprised of rent and tenant-paid utilities, equals no more than 30 percent of the household’s income. Currently 28 percent of American renters, over 11 million households, spend half or more of their income on housing, making them severely rent-burdened, shows Harvard University’s Joint Center for Housing Studies (JCHS). Expert opinions declare that based on the traditional affordability standards the U.S. is currently facing affordable housing crisis. Housing affordability and the growing imbalance between supply and demand 2014 is the fourth consecutive year in which nationwide vacancies have decreased, clocking in at 7.5 percent in Q2 of 2014, the lowest rate since 2005 and close to 1995 rates, Census Bureau data shows. During the same time nominal rents have increased by 12.4 percent, while household incomes grew by a mere 4.3 percent, Freddie Mac uncovered. High rents and low vacancies are being fueled by the nation’s housing shortage, estimated at 1.5 million units by some. Although sustained growth in the multifamily sector has brought back development to historical averages with 386,000 units underway as of July 2014, due decreased construction during the Great Recession, Freddie Mac predicts that over the next decade a yearly...

Amidst rising health care costs and the great urban rebound, the car is being replaced by alternative means of transport, such as biking. Millennials, one of the largest renter cohorts, are driving 23 percent less today than their peers did in 2001. According to U.S. Public Interest Research Group per capita driving rates have shrunken to 1996 levels.  The American Public Transit Association found that Millennials’ preferred method of getting around is biking, while driving came in last, behind mass transit and walking. But on-the-go Millennials aren’t the only ones choosing two wheels instead of four. Between 2000 and 2011 the number of Americans getting to work mostly by bike grew by 47 percent, New Geography found. According to the latest National Household Travel Survey data the 60 to 79 demographic generated 37 percent of the nation’s increase in biking between 1995 and 2009. Moreover, between 2001 and 2011 the number of biking baby boomers doubled, according to Bicycle Retailer Industry Directory. So how does the growing popularity of biking fit into America’s communities and apartment industry? Zach Vanderkooy, PeopleforBikes’ Green Lane Project International Programs Manager, elaborates. What are the benefits of biking? Zach Vanderkooy: There are so many — it’s a low-cost, convenient way to get around for short trips, it reduces traffic congestion, adds economic vitality, provides access to fresh air, all while being a physical activity that’s built in to everyday life. Riding a bike is inherently joyful and practical. You don’t have to work too hard to sell that. Most importantly, biking offers a chance to explore and engage with a community at a more human scale. Much like people on foot, people on bikes activate a place with recognizable faces — every passing rider is a chance for a...

In the traditional American Dream, renting was a transitional phase before upgrading to home ownership. That trend has all but vanished as mature adults rediscover the joys of renting. Joint Center for Housing Studies of Harvard University estimates that 2.2 million additional Baby Boomers will enter the rental market within the next decade, soon accounting for more than half of renter household growth. As more seniors turn to renting, many multifamily communities are exploring aging in place features that can appeal to seniors as well as younger generations. The National Association of Home Builders’ What Home Buyers Really Want report has identified key accessibility features that residents crave: Master suite on main No one wants to haul themselves up and down stairs for a shower, especially not as they get older. Aging in pace rentals require a full bath on the main, ideally with a separate restroom for guests. While this is easy for most apartments, condo and townhome owners may face hurdles when marketing to seniors. Wide passageways Doorways that are at least 3’ wide and hallways that are at least 4’ wide make it easy for maturing adults to maneuver, especially if assisted by a wheelchair. Barrier-free entryways Seniors avoid rentals with stairs anywhere between the parking area and the unit’s entrance, preferring communities that provide ramps and elevator access. Consistent flooring is also a coveted factor. Seams between different surfaces, such as carpet and hardwoods, could cause residents to stumble. Accessibility features Small touches make any house a home. For adults who plan to age in place, a home that is customized with accessibility features makes daily tasks less daunting.  Low cabinets and countertops, support structures in bathrooms, and walk-in showers aid users who may have limited mobility. Lighting As our vision declines, traditional...

The apartment industry has played a major part in the revitalization of the real estate sector while also significantly contributing to the American economy. Rental market activity has grown at a moderate yet constant pace in most metros around the country, with up to seven million new renter households forming the last decade—almost half of all new households, according to data from the National Apartment Association (NAA) and the National Multi Housing Council (NMHC). The post-recession slowdown in construction has translated into a tight housing market with low inventory levels and climbing rental rates. Corroborated with the massive influx of new renters entering the market, the multi-family sector is poised for more growth in 2014. It would take approximately 300,000 to 400,000 new apartments each year to meet current demand, yet just 158,000 apartments were delivered in 2012. Tech-savvy young professionals generally identified as members of the Gen Y cohort have long been considered the most influential renter demographic for the apartment sector. However, a new type of renter has recently showed up on the real estate radar, which may well reshape the residential market in the coming years. Several industry leaders seem to think that baby boomers could become a key renter demographic in the coming years as empty nesters move out of the houses where they raised families and downsize into cozier, more sustainable apartment units. A Research Notes recently published by the National Multi Housing Council aims to provide some perspective on the issue by analyzing the effect of two key demographic trends: the increasing population and the changing age distribution of that population. NMHC reviews several aspects impacting the nation’s housing choices including demographic, economic and lifestyle trends. Demographics influencing demand. A simple look at census data shows the population...

Care to know which cities in the United States are home to the most satisfied apartment residents? A recent report released by J Turner Research, a Houston-based company that exclusively specializes in market research for the multifamily industry, identifies Raleigh, North Carolina, as the nation’s hub for happy renters. The study, The Digital Mirror: Online Rankings and Reflection, tracked and analyzed the online reputation of 46, 000 apartment properties in 131 cities nationwide. Based on an aggregate scoring scale of 1-100, the national average score in online customer satisfaction was 47. “Online reputation is fast altering the dynamics of every industry” observes Joseph Batdorf, President, J Turner Research. “The apartment industry is no different.  The digital world offers an instant and influential platform for residents to make their voices heard. Residents across the nation have expressed their opinions to rate properties and J Turner has analyzed those ratings to determine the cities offering the highest customer satisfaction in the apartment industry”. Raleigh, North Carolina, ruled the charts in 2013, standing out as the ‘Happiest City’ in online customer satisfaction by apartment renters with a final score of 54.  According to the study, prospects in Raleigh may call themselves lucky as the chances of them landing a property that is rated at or higher than the national average are 68 percent higher than anywhere else. Cincinnati, Ohio came in second with a final score of 52; Washington, DC was ranked third with a final score of 51; Chicago, Illinois; Modesto, California; and Knoxville, Tennessee, also made the top ten with a score of 51. On the other end of the customer satisfaction index stands Aurora, Colorado. It seems that residents of Aurora have not had the best of luck with their apartment choices. The study...

Are we on the path back to the good old days of booming prosperity in real estate? Any step forward is a step in the right direction. Explore the top ten hottest metropolitan areas that are leading the surge in multifamily unit construction. Washington, D.C. The population rose by about 10 percent from 2000-2012. While job growth is a contributor, reverse sprawl has suburbanites returning to the city.  A blend of Baby Boomers and Millennials are taking up residence downtown. These new tenants are drawn to the conveniences of pedestrian-friendly living. Dallas The city seems unstoppable. Dallas continues to be a leader in population growth, now estimated to grow at 345 people per day or nearly one person every four minutes. Jones Lang LaSalle suggests that the Dallas-Fort Worth population will reach 9 million people in the next 16 years. Job growth in the financial services sector attracts talent to the city. Houston Houston welcomes more than 302 people per day. Like Dallas, Houston residents are drawn to the city’s job growth in the private sector. Dallas and Houston have been economic powerhouses throughout the new millennium. Los Angeles Interestingly enough, LA is losing ground in its trademark markets. The city doesn’t boast much in terms of job growth, either. New construction is an optimistic risk but developers are taking the leap. If we build stunning, eye-popping high-rises, they will come. San Francisco The city suffered from a 10.1 percent unemployment rate in 2010. By the close of 2013, unemployment dropped to nearly 5 percent. Job growth has revitalized the city so that it is bursting at the seams. A lack of competition has led to some of highest rents in the nation. As far as apartments for rent in San Francisco go, new...

As Baby Boomers by the thousands prepare to retire, training their successors is taking on fresh urgency. Anecdotal evidence suggests that a growing number of people are making real estate management a career of choice rather than chance. Nevertheless, some experts contend that the profession must further step up both recruitment and mentoring. All too often, some leading executives contend, the industry is unwittingly discouraging its own talent pool by placing too much weight on experience. And while IREM, Building Owners and Managers Association International and other groups sponsor outreach programs and networking opportunities, Joe Greenblatt, IREM’s 2014 president and president of San Diego-based multi-family specialist Sunrise Management, finds that young people often feel frustrated about the lack of responsiveness from prospective employers—and that is a missed opportunity. Once they’ve been hired, managers of all ages say, employers would do well to cater to the very distinctive traits 20-something professionals tend to share. To begin with, Millennials prize mentoring. Communicating back and forth is a must, according to Dee Headley, an Indianapolis-based vice president for Cassidy Turley and chair of IREM’s advisory board on student and academic outreach. And the more specific the expectations, the better, notes Va’Shajn Parr, who joined La Jolla-based Capital Growth Properties Inc. as an assistant property manager last summer and works on two portfolios comprising 33 properties. Furthermore, feedback should be individually tailored, says Kacey Morris, director of property management for Prologis Inc. in metropolitan Atlanta. Another essential Millennial quality is zeal to take on challenges right out of the gate. After all, this energetic, hands-on generation wants to make important contributions, according to Kent Bell, a property manager for Washington Real Estate Investment Trust. Karen Whitt, COO of U.S. real estate management services for Colliers International, likes to...

Millennials who flocked to their parents’ nests during the recession are a huge source of untapped revenue for the apartment industry. The trick, however, is getting them to leave a place that is so cozy, convenient, and inexpensive. Millennials, or Generation Y, already make up a notable portion of renters. Yet there is another wave of them, approximately 2.4 million strong, that is dancing on the peripherals of the rental market. Developers are pushing forward with construction plans, optimistically expecting that these young adults will soon form their own households. but there are quite a few challenges that may further postpone, if not deter, the young adults’ entrance to the rental market. The 2013 Current Population Survey data suggests that there are 2.4 million “missing” households in America. Thirty-one percent of this group is comprised by young adults ages 18-34 who are currently living in their parents’ households. Forty-four percent of the missing households are unemployed, meaning that they do not have the financial means to establish their own households—rentals or otherwise—anytime soon.  Even if every adult gained employment today, most leasing offices like to see six months to a year of work history. Some approvals require two years. As young adults accumulate work history, they must also save money for deposits, fees, bills, furniture, and so forth. For the currently unemployed, leaving their parents’ household won’t be an option for quite some time. Of the 25 percent of missing households that are employed, multifamily developers face other challenges in drawing them into the rental market. Millennials in general are less likely to have established credit. Experts point to the decline in credit card usage as the main culprit. FICO reports indicate that at the end of 2012, 16 percent of Americans ages 18-29...

Los Angeles—Gen Y likes rooftop pools, multimedia-equipped fitness suites, concierge package service and the ability to order housekeeping for their apartment. They have dogs, get lots of UPS deliveries but almost no mail, like walking places (but also need to charge their electric vehicles), and want the lobby of their apartment community it look like that of a four-star hotel. Sound high maintenance? It’s a fair assessment. Last week, a panel of multifamily experts delivered an overview of “What Renters Want: Development + Design Trends that Drive Occupancy,” at an AIA continuing education event held in Los Angeles and sponsored by Multi-Housing News, Interface and Universal Fibers. Speakers Manny Gonzalez, principal, KTGY Group; Kelly Farrell, vice president, RTKL; and Alan Dibartolomeo, chief development officer, AMF Development Inc. didn’t pull any punches when it came to the wish list of the nation’s largest renter demographic: 20-to-mid-30-somethings. “Gen Y rents by choice. We’ll see if they continue to rent by choice as they age. But if they keep renting, your rentals will have to be flexible enough in their amenities program to meet their needs in the future and the needs of their kids,” said Farrell, who described the demand for services among today’s typical resident. They want to be able to order up housekeeping, but not pay for it on a regular schedule, calling for an appointment when they have been too busy to clean or Mom and Dad are coming to visit. Someone should be in the lobby to receive their dry cleaning delivery and accept their packages while they work. Rent should be payable by credit card so they can auto-schedule the payment and forget about it. The good news is that they’re willing to pay for these conveniences. “It’s a generation that...

If the Great Recession has taught us anything, it is to show extra caution with our spending plans and investment endeavors. Almost half of Americans show an acute lack of trust and comfort when it comes to discussing financial affairs, according to Yardi client TIAA-CREF’s second annual Financial Advice Survey.  Perceived cost and lack of time are also cited as major factors impeding the general population from accessing advised financial support. “As a mission-driven organization, TIAA-CREF is dedicated to helping our clients take meaningful steps to secure a strong financial future,” said Eric Jones, senior managing director, advisory solutions at TIAA-CREF. “In fact, those who receive advice from TIAA-CREF are five times more confident about their retirement than the average American worker. And more than 95 percent of clients participating in our advice sessions trust TIAA-CREF to provide sound financial advice.” Key findings of the study include: Forty-eight percent of Americans say it is hard to know which sources of financial advice can be trusted. Thirty-seven percent of Americans say they don’t like talking to anyone about their finances. Faced with financial insecurities and fluctuating markets, forty-six percent of Americans say that more than ever, they need a trusted place to go for financial advice. Two-fifths of Americans think good financial advice costs more than they can afford. One-third of Americans say they lack the time to get proper financial advice. More than half (58 percent) of Americans say they would prefer to get financial advice from a single point of contact or location. Generational differences Not surprisingly, Generation X leads all age groups in acknowledging the benefits of getting professional retirement advice. Eighty percent of those between the ages of 35 and 44 who seek financial advice are looking for more guidance about...

In the aftermath of the Great Recession, the fluctuating economic climate along with a staggering housing market resulted in a shift in priorities for many Americans. Younger people don’t rush into home ownership as their parents used to, and continue to delay major life decisions like getting married and having kids. By the numbers, the share of Americans who own their homes was 65 percent in the first quarter of 2013, down 0.4 percentage points from the first quarter 2012 and the lowest level since the third quarter of 1995, according to the latest data from the U.S. Census Bureau. The ongoing decline in the home ownership echoes the rising demand for rental units and increasing investor interest in multifamily assets. Owner-occupied housing units made up 56.0 percent of total housing units, while renter-occupied units made up 30.2 percent of the inventory in the first quarter 2013. Vacant year-round units comprised 10.5 percent of total housing units, while 3.4 percent were for seasonal use. Fannie Mae’s Economic & Strategic Research Group recently released a new research study that investigates the impact of consumer attitudes toward renting and home ownership on the future of housing in America. As it turns out, Americans’ confidence in the recovery of the housing market climbed sharply in 2012, consistent with the trends that point out to a strengthening real estate sector. Becoming a homeowner is still an important milestone for many people, including the younger generation, though most renters are satisfied with their renting experience. The vast majority of renters think people are better off owning if they seek control, privacy, and security, want to raise a family or invest wisely, but they give the edge to renting when it comes to making the best decision in today’s economic...

As the saying goes, location isn’t just the most important thing in residential real estate; it’s also the second and third most important, too. A recent report released by the Urban Land Institute (ULI), “America in 2013”, reveals a growing preference among young adults to live in urban environments and mixed-use communities with reliable, convenient transit service, in close proximity to jobs and entertainment destinations. Gen Y-ers preference for city living may come as no surprise yet the same trend may be noticed among Gen X-ers and Baby Boomers. As empty-nesters develop a taste for traveling, sustainable lifestyles and relaxed living, renting becomes a viable alternative to home ownership. Moreover, apartments in the cities offer great amenity packages that often times surpass the comfort that you could afford in a suburban single-family residence where you have to deal with maintenance, replacement, upkeep, wear and tear, and potential depreciation. Based on a nationwide survey of 1,202 adults conducted between January 16 and February 3, 2013, the report suggests that demand will continue to rise for infill residential development that is less car-dependent, while demand could wane for isolated development in outlying suburbs. In addition, data shows that people have come to value location and sustainability over unit size and proprietorship. Among all respondents, 61 percent said they would prefer a smaller home with a shorter commute over a larger home with longer commute. Fifty-three percent want to live close to shopping; 52 percent would prefer to live in mixed-income housing and 51 percent prefer access to public transportation. As the largest demographic group today, Gen Y or Millennials, who are also the most racially and ethnically diverse cohort, are expected to have the most profound impact on urban growth patterns and land use. Fifty-nine percent...

As more of the 80 million-member Millennial generation enters the workforce, these so-called Gen Y-ers, age 18 to 35, are on everybody’s minds these days as one of the largest—and most fickle—groups to influence housing, shopping and the workplace. Financially strong and responsible, they nonetheless like to shop, prefer convenient housing over expansive, and while they are not yet the company decision makers, they certainly represent a growing proportion of the workforce—with a work style that is sometimes at polar opposites to their parents, the giant Baby Boomer generation. The Urban Land Institute followed up last year’s study of Gen Y housing preferences with a new analysis of their retail habits, released during the Spring Meeting, which took place in San Diego in mid-May. The study identified a strong group, with even a good percentage of those in their 20s financially independent and earning a comfortable living. Sixty-five percent of the 1,251 respondents to the survey said they do not receive financial help from their parents, with 41 percent working full time and fully 46 percent achieving household income of $50,000 or more per year. Thirty-two percent own their own home (predominantly those in their 30s). They carry an average of $22,000 in student debt, but four of five said they don’t use credit cards and 27 percent pay their credit card bills in full every month. Interestingly, while a large proportion live in or near cities, their orientation and long-term plan may be otherwise. Just 14 percent live in or near downtowns, but another 34 percent live in city neighborhoods outside the downtowns (think Brooklyn in New York City or Buckhead in Atlanta), while 13 percent live in dense older suburbs and 11 percent in newer, outlying suburbs; 19 percent in small cities...

Things are changing fast in the apartment rental world. Generation Y is pouring almost 80 million potential renters into the market, and these new tenants are a hard-to-please, tech-savvy demographic. Many multifamily properties have upgraded to keep up with the demands of these new renters, resulting in new amenities which not long ago were considered luxuries. Catering to boutique preferences means not only that renters have an opportunity to select an apartment that will reinforce their lifestyle choices, but apartment marketers can focus on unique and creative sales pitches. Pools, fitness and business centers, tennis courts, comfortable clubhouses, and average laundry facilities won’t make you stand out – all are common these days. Access to high speed Internet, whether hard-wired into apartments or available as universal, dependable wi-fi around the property, is a must. Leading edge developers have discovered new ways to attract residents and to keep their current tenants in high spirits. A few of the concepts they’ve come up with: Outdoor green space is close to impossible in some metro areas, but apartment complexes with a healthy development plan highlight this amenity incorporating within the property walking trails, Zen gardens, rooftop meditation oases, benches, fountains, and dog parks. The older apartment communities might not have the means to offer the modern green space perks, but the newer ones know that a well-kept garden with a grassy courtyard and tree-lined landscape can work wonders on the residents’ psyche. Some apartment complexes go as far as offering individual garden plots for the nature-loving tenants who want to grow their own flowers or vegetables. Exuding a healthful lifestyle on property sites takes many forms. Many communities are designated smoke free zones, free of wafting second-hand smoke with no cigarettes or cigars allowed anywhere on site....

Oh, those hard-to-pin-down, picky renters and their hearts’ desires. Every year, major research and development dollars are spent by trade associations and independent companies to try to figure out what will make renters choose one property over others, pay more rent for certain amenities, and stay on as long term residents. What’s being most closely scrutinized is the predilections of the “Millennial” apartment renters – the kids of Baby Boomers, ranging in age from recent high school grads to those in their early 30s – who are expected to favor renting over home ownership. As a result, some have changed their generational label to the “Rentennials.” Is it accurate? A recent National Association of Home Builders (NAHB) panel that looked at these trends expects these renters to want urban-proximate multifamily housing, with easy access to efficient public transportation as well as walkable neighborhoods, for ease of commuting and lifestyle convenience. NAHB is betting that the Rentennial trend will be a source of income for their industry in the years to come. We decided to take this research one step further and ask a group of Millennials/Rentennials how they feel about renting, home ownership, and what they want in their “ideal” apartment building. Here’s what they said. The perfect apartment? According to the NAHB, it’s the location of a property that will be the pivotal factor in attracting most renters, who dislike traveling long distances to their jobs. This insight is accurate, according to the young renters we heard from. And it’s also true that renters today want convenient public transportation access and walkable neighborhoods. “It’s all about the lifestyle for today’s renters. They want the urban experience of less commute time and immediate access to various activities,” said Jeff Kayce, vice president at Bozzuto...

America today is a veritable melting pot of demographic trends. The first Baby Boomers have arrived at senior citizen status. The population’s balance is shifting, with the historical white majority on its way to becoming the minority, while certain minorities are on their way to becoming the majority through a combination of organic growth and immigration. A huge pool of new graduates is pouring into the market. And urban centers are exploding at the expense of the suburbs. While this flood of significant shifts is impacting virtually every property type, perhaps none is more influenced than the retail sector. Successful retailing requires layering preferences, price points and geographic placement—and tracking how these are changing to better address them with the right offerings in the right locations. Complicating this targeted planning is the growing influence of technology, in particular the competition from online retailing—so-called etailing. Retailers and retail real estate owners alike are striving to sort through all this to make the best decisions, and the array of data available to them continues to grow.  Arguably, they are getting ever better at following it, although not perfectly—after all, while a variety of new retail concepts have come out, over-retailing continues to impede the industry, only to result in shutdowns and bankruptcies during lean years, as has occurred in especially large numbers during the most recent recession. There is still room, however, to pursue new opportunities, and some interesting ones are emerging. Take, for instance, the potential in the generation now crossing the retirement threshold. While retailers are generally focused on younger shoppers, drawn by their huge numbers and propensity to develop brand loyalty, older Baby Boomers actually constitute a better option, according to Nielsen Co. data. Per capita, their average expenditures are noticeably higher—at $25,952...