“Millennial” is probably the most widely-used (and least-understood) cultural word of the 2010’s. As a generational term, no one can seem to agree on dates– as of the writing of this article, for example, their average range birth years run from 1983 to 1997 (but even this range shifts, depending on who you ask).
Their characteristics, behaviors, and spending habits seem to change according to social and economic conditions. In fact, the generation is further defined by its ability to create, adapt, and apply communication, media, and business technology.
They make up over 20% of consumer discretionary purchases; therefore, it’s imperative for businesses to adapt in kind, and market to this demographic because the changes they’ve made to the economy are already being seen.
But what are these trends? And what is the millennial impact on property management
The supply of rental units is simply not keeping up with demand. In 2017, construction reached its highest level in the past 20 years– but there’s still a shortage. This has increased rental rates in some areas, while occupancy rates remain comparatively low. The production of rental housing that’s developing has trended toward the high-end scale. Therefore, there will be an unfulfilled niche in the low to mid-range market.
While many developers are focused on building fancy, multi-story residential towers, Millennials are looking to rent affordable, single-family housing. 1 in 4 Millennials are now parents themselves, and they still love to travel. 79% of Millennials would like to visit all 50 states, while 75% of them would like to travel abroad. Therefore, they’re looking to save money, and have a place of residence that doesn’t require massive upkeep. For the Millennial, quality of life is tied to experiences- not physical things.
Customer Service Through Technology
AI (Artificial Intelligence) software, machine learning, and intelligent systems are being developed and implemented to give residents an improved renting/quality-of-life experience. New technology- the wheelhouse of the Millennial -often features automated maintenance workflows in order to make scheduling and communicating fast, easy, and efficient.
Imagine: A text message gives a vendor a work order… and nobody has to waste time talking on the phone.
Revolutionizing resident experiences in this way will set up your company for greater success by accessing the ability to fully satisfying the dynamic variables of real estate. This will help meet tech-savvy residents’ expectations, and in turn, increase your company’s brand presence.
Your personal brand is the story of your business. It’s the tale of what you do, and why you do it. You market your company to attract new residents and to fill your properties. Millennials are the renters of the present and the future. They utilize and interact with many online review sites before making purchases. Therefore, your reputation is a major part of your brand. A good reputation (4-5 stars) instantly gives your business a competitive edge… while a poor reputation will make keeping your business afloat extremely difficult.
Don’t wait for the Millennial to adapt to your business. Click here to adapt your business to the Millennial.