Alright, let’s talk long-term changes. 

I know long-term anything is really difficult to think about right now because a lot of us in this industry are trying to figure out how we’re going to survive the rest of 2020. But that’s what we thought back in March when COVID-19 launched itself into our lives and look at what we’re doing now — surviving. 

So, we’ll survive. 

But then what? What does property management, unit tours, apartment marketing, and leasing all look like in five years? 

I feel like these are important things to discuss so we can begin to prepare and get ahead of the curve.

I definitely don’t have all the answers but here are my thoughts (feel free to comment yours down below): 

Affordable Apartment Demand Will Triple

Unfortunately, it’s going to take years for our economy to bounce back from the pandemic. So many people have had a change in income and due to current job unpredictability, money isn’t as freely spent. We’ve established that renters are still renting and those who want to move are still moving, even during the pandemic. 

However, I think within the next five years, the amount renters are willing (and able) to spend each month on rent will slowly decrease. The truth of this becomes even more clear when we factor in how long this pandemic could potentially last in the United States. 

On top of that, due to the previously stated job unpredictability and the need to possibly move for a new job, I think the majority of current and upcoming renters (Gen Z) will be less inclined to make the permanent choice of purchasing a home.

So, will this mean more new affordable developments needing to be built? Or current properties altering their rent prices? 

All that being said, we know renters still want luxury, even if they’re only spending $1,000 a month in rent. Which brings us to these next two words…

Affordable Luxury

I don’t know if this phrase has been coined in the multifamily industry yet, but it should be. I feel like “affordable luxury” truly captures what many young renters want these days and what more developments are aiming for. I know I see it all the time. 

Within the next five years, it makes sense for properties to begin to find alternate materials and appliances that cost less so they can charge less for the unit. 

As with the current trend of these new generations; they want more for less. I don’t know if that is necessarily a good thing, but it is what it is. 

Apartment and Office Space Will Intertwine 

This prediction actually has two separate meanings because not only do I think apartment developments will begin to incorporate office spaces on the lower floors but I also think that renters will begin to want designated office spaces within their units. 

I can see new developments offering floorplans that have one bedroom, one bath, and one office. You could say that a two-bedroom apartment could be marketed as an office space scenario but I don’t think that would be as successful. 

Let’s say a single individual or young couple is looking for an apartment. If one or both work from home, they’re going to want a place that has room for an office but it’s likely they won’t be able to afford a two-bedroom apartment. I can see a nice medium forming where it’s a higher cost than a one-bedroom but more affordable than a two-bedroom.

Properties Will Be Chosen Solely Online

With COVID-19, we’re almost already there, but I think within the next five years this will solidify. In five years, if not now, Generation Z will be the dominating percentage of all renters and they were born into a world that was already online. To reiterate, most of them had a smartphone by the age of twelve (just ask my kids).

They are used to doing everything online — buying clothes, picking cars, planning trips, getting furniture, and so on. With that in mind, searching and picking an apartment online will feel totally and completely normal for them. 

In my opinion, we need to prepare for this and cater to their natural routines and decision-making skills that are based on online images and videos. This means properties need a gallery brimming with high-quality property images that capture every feature, amenity, and benefit of living in your community. 

What are your thoughts? Do you see these changes happening?