How to Cater to Millennials’ Evolving Needs

 

As the oldest Millennials are approaching 40, their needs are changing. Because they have different factors influencing their needs than they did in their 20s and 30s, Millennial renters’ preferences have shifted considerably.

Today’s Millennials are renting for longer periods than previous generations. They are delaying plans to get married and start families. But even when entering these different stages of life, a good portion of this demographic prefers to rent, compared to earlier generations who were already buying their first home at that stage.

And while some can’t afford to buy, others enjoy the flexibility that renting offers. JP Bacariza, vice president & market leader for Ryan Cos.’ Tampa office, said larger, three-bedroom units and single-family rentals have become a popular option for Millennials who want to avoid the commitment of homeownership.

Work life

The COVID-19 pandemic forced Millennial office workers to shift to remote working and changed the way they utilize space. Compared to 10 years ago, when renters were trekking to the office every day, today they need space to comfortably work from home.

A Millennial who would have been content with a one-bedroom unit is now looking for a two-bedroom apartment, with the functionality of the space equally important as the square footage.

“With Millennials working from home, they need to be able to conduct Zoom calls and not have major distractions or disruptions,” said Bekkah Doyle, senior marketing specialist with REACH by RENTCafé at Yardi.

Communal space at 2Hopkins. Image courtesy of LIVEbe Communities

The option to work outside their apartment is a major selling point. According to Bacariza, Millennials expect to see decentralized office space for remote work on the list of property amenities. To meet this need, many communities are providing membership-based office space for rent, either through the community or through a partnership with a coworking provider. At 2Hopkins, a 21-story, 183-unit community in Baltimore, Md., operator LIVEbe Communities moved away from the traditional business center model that was common 10 years ago and replaced it with cubbies and banquettes. Residents have separation for privacy, but they can also interact with other residents. “They really appreciate those areas, where they can get comfortable and know that they don’t have to go somewhere (else) to access those types of spaces,” said Elaine De Lude, vice president at LIVEbe.

Shifting space needs

Outdoor space is another important consideration for Millennial renters, who are more cognizant of their mental health and well-being. “They want to be outdoors more; they want fresh air, nature, and natural light,” said Richard Lake, managing partner of Roadside Development.

Rooftop spaces, outdoor pavilions, pool decks with cabanas, green spaces, and communal spaces with a firepit or other focal point are newer amenities that have become necessary comforts.

With the rise of e-commerce and grocery delivery services, package lockers and cold storage are a necessity that was less prevalent 10 years ago. Millennials want to live in a community with a long amenity list. Amenities used to be clustered in one area of a property, but today’s Millennials want to live differently, according to Lake. “Sometimes they want the energy and excitement of other people, and other times they just want to sit on the roof and have a glass of wine while watching the sunset with their dog,” said Lake. With many in this demographic owning pets, they are also looking for properties with dog parks, dog runs, and pet spas.

Roadside’s City Ridge, a mixed-use, 750-unit development in Washington, D.C., will feature several amenities across the community to cater to this generation’s lifestyle, including a rooftop greenhouse with an organic garden, a maker space, a commercial kitchen, and an outdoor pizza oven.

These “more soulful and more intimate amenities are just as important as creating those wow moments,” said Lake.

Rooftop deck at The Remy. Image courtesy of LIVEbe Communities

When it comes to fitness and physical health, the Millennial renter is looking beyond the traditional fitness centers.  Developers have had to expand offerings from just one on-site gym to include a yoga room, a TRX training room, or another secondary fitness space, something Bacariza said is hugely important today.

Getting social

A subset of the amenity list includes those with a built-in social element that supplies a community feel. Theater rooms are now less appealing and are being replaced with options that create more of a social scene, such as game and recreational areas, wine bars or regular events that are executed in a social setting.

“These environments enrich people’s lives and create bonds between the residents,” said Bacariza. Connection and engagement are more important to this generation, but this should be an authentic experience. You need to show how your community fosters that. “It’s not enough to say you provide excellent customer service. Millennials are asking ‘What does that look like? Show us … let us feel it,’” De Lude noted.

Dedicated training space at 2Hopkins. Image courtesy of LIVEbe Communities

To retain your Millennial residents, you need to be relatable. “Being transparent is really key,” said RENTCafé’s Doyle, “as Millennials are very self-sufficient in finding out more information about your business than just what you are putting out there.” This demographic is savvy enough to call your bluff when you describe your average pool as “resort-style.”

Show and tech

Convenience is also high on the Millennial checklist. As a tech-forward demographic, they want convenience, accessibility, and the ability to do things on their own. To that point, “our buildings have to get smarter,” said Lake. Millennials use technology to find apartments, so they expect communities to utilize technology in various ways, whether it’s self-guided or virtual touring, smart locks or smart thermostats. Wi-Fi connectivity is also a must-have. “Millennials are the smartphone generation, so as many things as we can access and control from our smartphones the better,” said Doyle. As a connected generation that no longer writes checks and has ditched bank transfers in favor of mobile-based options, Millennials would prefer using an app to pay their rent and make maintenance requests. Technology is also an important element of marketing to Millennials and communicating with them. This generation would rather communicate by text message than call the management office.

“The Millennials expect to be followed up within that manner,” De Lude said. “That expectation is a change in behavior from 10 years ago.”

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Source: How to Cater to Millennials’ Evolving Needs

Marcus & Millichap Ranked #1 Brokerage Firm for Multifamily Properties

 

Real Estate Alert (REA) released rankings for the first half of the calendar year 2021 with Marcus & Millichap as the #1 firm for the sale of Multifamily properties valued at $5M to $25M.

During the first half of 2021, Marcus & Millichap’s Multi-Housing Division seized on the opportunity to leverage the firm’s vast network and qualified buyer pool to effectively move capital and deliver top-notch returns for our clients. Our investment specialists’ expertise coupled with real-time market insight allowed us to lead the apartment sector in the $5M to $25M segment, demonstrating our continued commitment to thriving in the current market.

 

FHFA Raises Multifamily Loan Purchase Caps for Fannie Mae and Freddie Mac

 

WASHINGTON, D.C. — The Federal Housing Finance Agency (FHFA) has set the 2022 multifamily loan purchase caps for Fannie Mae and Freddie Mac to be $78 billion for each agency for a combined total of $156 billion. The 2022 caps are based on FHFA’s projections of the overall growth of the multifamily originations market. This year the caps are set at $70 billion a piece for both Fannie Mae and Freddie Mac.

The FHFA wants the agencies to keep their focus on providing liquidity for affordable housing and underserved markets. Just like this year, the organization is requiring that at least 50 percent of Fannie Mae’s and Freddie Mac’s multifamily business in 2022 to be mission-driven affordable housing, or for units affordable to residents earning 80 percent of area median income (AMI). However, at least 25 percent of the agencies’ multifamily business is required to be affordable to residents at or below 60 percent of AMI, up from the 20 percent required this year.

Additionally, the FHFA is expanding certain definitions of what it determines as “mission-driven affordable housing.” Starting next year, the FHFA will allow loans on affordable units in cost-burdened renter markets and loans to finance energy or water efficiency improvements for units affordable at or below 60 percent of AMI to now be classified as “mission-driven.”

“The increases of the multifamily loan purchase caps and higher mission-driven business requirements assure that the enterprises’ multifamily businesses have a strong and growing commitment to affordable housing finance, particularly for residents and communities that are the most difficult to serve,” says Sandra Thompson, acting director of the FHFA.

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Source: FHFA Raises Multifamily Loan Purchase Caps for Fannie Mae and Freddie Mac

Chicago & the Midwest Multifamily Forum

 

Join fellow multifamily owners, investors, and developers as well as industry experts and solution providers at the 

Marcus & Millichap / IPA Multifamily Forum: Chicago & the Midwest 2021

This year's conference is on Thursday, November 4, and is preceded by three days of online content and networking opportunities in addition to the in-person event.

Find out what your peers are doing in the Midwest multifamily industry including senior executives from the following firms:

29th Street Capital Barrett & Stokely Becovic Bedrock Detroit Belgravia Group BH Management Bozzuto Brookfield Buckingham Companies Cedar Street Coastal Ridge Condor Partners Conor Commercial Real Estate Continental Properties DTN Management Eastham Capital Edward Rose & Sons Fifield Companies Focus Development Friedman Communities Golub & Company Greco Properties Greystar GSP Development Habitat Company Harmoniq Residential Heitman Highgate Capital Group HP Ventures Group Hubbard Street Group

JDL Development Klein Development LaSalle Investment Management Legacy Lendlease Lennar Multifamily Lincoln Property Company Magellan Development Group Milhaus Oppidan Opus Development Company Origin Capital Partners Plk Communities PURE Real Estate Management Real America Development Redwood Capital Group Roers Companies Royal Capital Ryan Companies Saturday Properties Savoy Development Schafer Richardson Shelborne Development T&H Investments Trilogy Real Estate Group VennPoint RE Waterton Windy City RE Wingspan Development WPD Management

Register today

KEYNOTE SPEAKER

 

David Schwartz Chairman & CEO Waterton

 

SPEAKERS & FEATURED PARTICIPANTS

 

Leslie Andren Chief Investment Officer VennPoint RE

Katie Anthony Director - Development Schafer Richardson

Michael Baker Vice President BH Management

Bryan Barrett Chief Executive Officer Barrett & Stokely

Sal Becovic President Becovic

Dave Brackett SVP - Operations Milhaus

Josh Brandsted President Greco Properties

Tracy Brown Senior Managing Director Multifamily Management Friedman Communities

Sheila Byrne Executive Vice President Property Management Habitat Company

David Carlson Partner Redwood Capital Group

Steven Chaben SVP & Regional Manager Detroit Marcus & Millichap

Peter Chmielewski City President - Chicago Lennar Multifamily

Catherine Clark Chief Investment Officer Bedrock Detroit

Chris Coleman VP - Development Wingspan Development

Mary Cook President Mary Cook Associates

Peter Cook Director - Capital Markets HP Ventures Group

Larry Debb President & Founder GSP Development

Yale Dieckmann Managing Director Development Greystar

Erin DiPaola Spears President Fifield Companies

Dan Dooley Managing Director Investments Coastal Ridge

Zach Dovner VP - Acquisitions Eastham Capital

Todd Eatmon President Core Living Roers Companies

Scott Ferguson Senior Vice President Regional Operations Waterton

David Ferszt President DTN Management

Matt Fiascone President Habitat Company

Anne Ficeli President PURE Real Estate Management

Ryan Folger EVP - Design & Construction Continental Properties

David Goldman Co-CEO Belgravia Group

Michael Goldman Executive Vice President Golub & Company

Jana Hageman President & Owner T&H Investments

Alex Hansen VP - Acquisitions Columbus 29th Street Capital

Gaurav Hardikar VP - Product Brilliant

Michael Hayford Multifamily Director Midwest Kastle Systems

Mary Howell Chief Operating Officer Legacy, LLC

Ashish Karamchandani SVP - Acquisitions Heitman

Jesse Karasik Chief Investment Officer Trilogy Real Estate Group

Tammy Kelly Senior Managing Director Asset Management Redwood Capital Group

Jason Kessler Chief Operating Officer Edward Rose & Sons

Jon King SVP - Multifamily Brookfield

John Kinzelberg CEO & Managing Partner Highgate Capital Group

Michael Klein President Klein Development

Jared Kuhn SVP & Sector Leader Multifamily Ryan Companies

Josh Landry Executive Vice President Buckingham Companies

Megan Lawhon Chief Operating Officer Plk Communities

Paul Lewis SVP & National Director Agency Programs Marcus & Millichap Capital Corporation

David Lizak Senior Director Commercial Development XFINITY Communities

Daniel Mahoney Senior Strategist & Managing Director LaSalle Investment Management

Kathy Makino-Leipsitz Owner Shelborne Development

Michael McLean Jr. Partner Condor Partners

John McLinden Managing Partner Hubbard Street Group

Kevin Newell Founder & CEO Royal Capital

Pei Pei Mirabella Senior Vice President Bozzuto

Justin Pelej SVP - Development Focus Development

Suzanne Peperak Executive Vice President Barrett & Stokely

Enrico Plati Chief Executive Officer Savoy Development

Joseph Powers Regional Manager Chicago Downtown Marcus & Millichap

Janet Protas Senior Vice President Multifamily Development Conor Commercial Real Estate

Craig Pryde Principal KTGY

Matt Rauenhorst EVP & General Manager Opus Development

Melanie Reusze Chief Operating Officer Real America Development

Heather Riggs VP - Multifamily Operations Continental Properties Company

Kent Roers Co-Founder & Owner Roers Companies

Brent Rogers Owner Saturday Properties

Amy Rubenstein Chief Executive Officer Windy City RE

Milan Rubenstein Co-CEO Windy City RE

Patrick Ryan Chief Operating Officer WPD Management

Alex Samoylovich Founder & Managing Partner Cedar Street

David Scherer Principal Origin Capital Partners

John S. Sebree SVP & National Director Multifamily Marcus & Millichap

Lindsey Senn Executive Vice President Fifield Companies

Ryan Shannahan EVP - Development JDL Development

Ronda Shrewsbury President & Owner Real America Development

Steve Sise Senior Vice President Portfolio Management Golub & Company

Rick Stoll Managing Director Harmoniq Residential

Brad Vogelsmeier VP - Development Indiana/New Markets Milhaus

Bruce Webster SVP - Operations Midwest Lincoln Property Company

Steven D. Weinstock FVP & Regional Manager Chicago Oak Brook Marcus & Millichap

Ted Weldon Executive General Manager Development Lendlease

Renee Wersching Executive Vice President Property Management Magellan Development Group

Louis Zachary SVP - Construction Oppidan