Page 4 - Innovative Practice Awards Program - INNOVATION SYMPOSIUM 2017 - C. T. Bauer College of Business

EXECUTIVE SUMMARY

INNOVATIVE PRACTICE AWARDS PROGRAM
The cost and responsibilities associated with home ownership has increased the attraction of renting for both
millennials and empty nesters. In our research we have found that millennials and empty nesters are shaping
the direction of innovation in multifamily development. Both demographics require developers to offer compet-
itive amenities that are within easy access. There is an increasing desire to live near employment and amenities
which has supported the growing concept of ‘Live, Work, Play’. This desire for improving walkability has driven
developers to carefully evaluate the location of their projects and how they can either leverage existing infra-
structure or provide the amenities in house to meet the needs of their future residents.

With the rising cost of housing and the growing drive to
improve life balance consumers are demanding more
in return for their rent payments. Although nothing can
compare to the benefits of a well located property, well
designed amenities that meet the needs of the targeted de-
mographic can play a huge role in improving the daily lives
of both the tenant and landlord. Amenities that improve
energy efficiency usage not only benefit the residents but
help eliminate inefficiencies in maintenance of the property
assets. Security is also very important to residents as they
want to feel that they are safe in their environment. Devel-
opers who leverage the shift toward sophisticated security
related amenities such as electronic door locks or 24-hour 1 One Lakes Edge, Courtesy of The Howard Hughes Corporation
onsite staffing provide a level of assurance that consumers are starting to demand. Another big growth area is
Omni- Channel retail. Omni-Channel retail is also growing in popularity which has forced developers to think of
ways to address the package delivery concerns. With the increasing growth of online shopping it is important
that developers leverage technology to find creative solutions that meet the needs of their residents. Amenities
that are targeted to high-end luxury apartments are now more readily available to other markets due to the rise
in solutions such as digital concierge services and well-designed smartphone apps.

The increase in expectations from consumers and the availability of new technology has impacted the design
and implementation of new amenities in the multifamily space. Developers who adapt quickly to fill the needs
and desires of the upcoming and existing generations by offering the right amenities are sure to see success in
Houston.

CONSUMER PREFERENCES

Historically, Houston’s preferred method of expansion has been to slowly sprawl outwards, while absorbing
the surrounding areas. For most Houstonians, home ownership typically meant moving to the suburbs to take
advantage of the lower home prices and be in close proximity to better schools for their children. However, a
recent study by the Kinder Institute indicated that while about half of Houston residents still prefer suburban
living, an increasing number of people are embracing a more urban lifestyle, characterized by smaller homes
and walkable communities (Holeywell, 2016). The two age groups that are primarily driving this trend in Hous-
ton are the aging empty nesters and the increasingly numerous millennials.

Multifamily - Living Elevated
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