It has rained all day here in Central Florida, which provided me with an opportunity to jot down some of the things I have been thinking about recently. This is also the first chance I have had to write since my trip to the United Kingdom. Nothing like the fresh air of Ireland and beautiful scenery to trigger your senses and reflect on life in general. Something about a rainy day just makes me want to write, so here goes.
The term "apartments" was derived from an American standard of living in the late 19th century. While apartment living has been traced back to Roman times, the concept of multifamily or apartment home living transitioned from the term "flats" which is still used today in the northeast. Census estimates show that at the beginning of 1900 almost 75% of Americans lived in apartments. Most early apartment buildings were upper floors of homes or converted hotels and more closely related to studio's or efficiency units. Then sometime around and after 1920, multistory buildings were being constructed the the phrase, "studio apartment" was coined in the New York metro area also called "cooperative apartments." After about 1930 apartment buildings were common and amenities such as private bathrooms and kitchen appliances were common. A large apartment building might be 20-30 apartment homes or flats, and in some cases were nothing more than a converted warehouse with walls added. Then something happened, and none other than the US Military assisted in developing what we know today as an apartment community. During World War II, military bases built entire communities of multi-unit buildings to house families of those serving in our armed forces. Prior to that period there was not as much consideration for the familial unit in the armed forces, and changes had to be made. They added parks, swimming pools, and playgrounds in an attempt to provide housing for those serving and in training of our military.
From what started as mom and pop renting out rooms in the upper story of their home to the complex and diverse industry of today, many changes have taken place. From rent by the week with nothing more than a handshake to leases several pages long, we have witnessed the evolution. From ledger cards keeping track of receipts and charges and NCR (no carbon required for those under thirty years old) work orders the business of apartments has transitioned into one of the largest industries in the world. From signs on a telephone pole advertising "apartment or room to let" to Internet web sites where you can take a virtual tour and rent your apartment in a matter of seconds without even seeing it, we have come a long way.
Today it is estimated that only about 33% of Americans live in apartments. The dream and reality of home ownership has changed, coupled with the construction of "cookie cutter" homes and communities. That being said, there are indications apartment home living may be on the rise again...at least in the short term. Jobs have started to come back, however, annual medium income has been declining over the past 6-7 years. We had what was termed as "the housing crisis," tied to economic downturns starting in 2008 and increasing foreclosures and bank defaults. Occupancy has been steadily rising in most apartment communities and in most major markets, and new construction of multifamily sites is again on the rise. The most recent report for 2014 shows apartment occupancy is the highest it has been since 2000, and both rents and occupancy have been on the rise.
Everything in our business runs in cycles and we don't need a Quija Board to discover what goes up, will some day come down. These cycles used to be more determined on the banking industry, federal reserve, national economy, government regulations, technology, and interest rates. Today we live in a global economy and external factors as well as internal factors play a huge part on these cycles. Technology is changing quickly and in addition to rent optimizers which automatically set rents for a site staff, the way we communicate with both our teams and our residents is changing. To throw out some numbers only 10% of homes in 1950 had telephones, compared to an average of multiple phones per household today including cellular devices. Today's apartment community has wireless Internet, multiple pools, a full fitness center, dog parks, a business center, walking trails, and trash picked up at your door. I some years back predicated in one of my articles we would see convenience stores in apartment offices and on some communities and voice activated lighting, and it is already being offered.
While our industry has evolved, in some regards it has also remained the same. What has not changed is we are still dealing with humans and their homes. We touch their emotions dealing with their home, cars, pets, finances, credit rating, familial status, and their lifestyle. We forget that service is more than an email and expectations will never go down, only up. As we raise rents, so do we raise the expectations of our residents. We may have new ways to market through electronic mediums, but the emotions and feelings of our residents is what guides their wallets and their mind just as how it always has. So the next time you hear the phone and think, "another prospect," you are wrong it is a guest because they seldom stay forever. The next time you ask when a resident calls in a service request, "What is your Unit Number?", you would be wrong because they live in their home not a unit. Don't ever forget they have the ability to fire everyone in your organization from the CEO/Owner on down, simply by choosing to live somewhere else. While our history has been interesting and ever changing, some things never change.
