I (and others) have been warning about troubles brewing for the multifamily housing industry due to: aggressive rent increases; a serious lack of affordable housing; a significant inflow of new product that most report has supply exceeding demand. Adding to all of this is the inevitability of an economic downturn, with the only question being when.
The latest resident survey results from Kingsley Associates provides valuable information - showing that renewal intentions are at an all time low. Clearly affordability, aggressive rent increases and tons of new product are playing a role. FYI, while most of the survey results are quite interesting, be careful drawing conclusions from the discussion about ratings and reviews, where they show Facebook, Yelp, Twitter, YouTube and Google+ as the top sources shoppers are going to review ratings. It appears their survey question does not include the major sources for reviews such as ApartmentRatings.com, Apartments.com, and the ApartmentGuide.
MORE ON YESTERDAY'S POST REGARDING RESIDENT RENEWAL LIKELIHOOD HITTING AN ALL-TIME LOW
Yesterday I posted on Facebook and LinkedIn that renewal intentions are reported to have hit an all time low. I shared some likely causes: aggressive rent growth at twice the Cost of Living Index; flat incomes; lack of developing affordable housing. I must add, of course there is nothing wrong with making a profit. But one must balance goals for company performance with the need to behave in a socially responsible manner. When rents grow at double the changes in the Cost of Living Index, one must ask if the survey results are showing how the result is growing renter concerns and resentment. The times they are a changing. Company performance and social responsibility can co-exist. CSR is no longer a topic the business world can ignore.