Jeff Adler, Yardi matrix
The biggest changes in renter preferences since the pandemic hit revolve around the dramatic shift in the expectations of where “work” occurs for careers that have traditionally been office-using (intellectual capital based). Even as the economy, cities, and offices re-open, there are a greater proportion of renters who will be able to work from home a few days each week or even entirely remotely, not tethered to the city where their company’s offices are physically located.
Our best estimate of the range of this impact is an incremental 20-30%, which is significant. As a result, there is a bit of a hierarchy of needs: 1) Connectivity & Space – need for very high-speed internet connectivity and a Den/Workspace in which to comfortably work part-time; 2) Work-Related Spaces- Co-working type “2nd places”, and recording/video studios (most prevalent in LA and Nashville); 3) Recreation- Private Dog Parks, “Maker” Creative spaces, Peloton Bikes in Gyms, and Electric Car Charging stations (based on location density).
The pandemic induced a dramatic shift in the mode of thinking about work and the re-awakening that a range of living density options is viable. This creates the potential for a broader range of neighborhoods and metro areas to participate in the continued growth of our knowledge-based economy. In the end it may prove to be one of the “silver-linings” of this past’s extraordinarily difficult and disruptive year. For more insights, please see the links below for some of Yardi Systems’ original research into renter consumer preferences.