When the music stopped in the residential-real-estate market,
speculators who got caught with unsold houses and condos began putting them on
the market as rentals. This "shadow market" has made investors jittery about
price-destroying competition for the real-estate investment trusts that own big
apartment complexes. [read more here]
Cool Question: What’s not going to change in our business over the next ten years? With so much focus on what is going to be different about our business wouldn’t it be smart to ask the opposite question.
I got the question from an article about Jeff Bezos founder of Amazon.com. He and his team of innovators ask themselves the question on a regular basis to ensure they don’t focused on the pillars of their business.
What do you think will be the same 10 years from now in our business?
I flipped open this months issue of The Harvard Business Review and caught this ad for Shell. Putting all views of the world of oil aside, I love this ad. It made me wonder out loud about how many times I may have stuffed a good idea because I said, "No, that won’t work, we’ve tried it before." If you are faced with the powerful motion of NO tomorrow, try saying Yes, Do that!
I pulled the following excerpt from an AP story over at [Yahoo]
"The so-called Echo Boomer generation, which is loosely defined as the
children of Baby Boomers, will help drive business for Equity
Residential and the apartment market as a whole, Neithercut said. He
said the population, estimated at 80 million, will have a high
propensity to rent and will be attracted to the company’s core markets."
That is, in part, David Neithercut’s, sentiment on the multi-family market and more specifically the core markets that EQR manages property in. Mr. Neithercut is the CEO and President of Equity Residential Properties based in Chicago, IL.
I’ve read the estimates that the EB crowd numbers in the 75 to 80 million range, I have also read that 57% or greater are staying home and or going back to live with Mom and Dad after college graduation. [Read Here] And, note that affordability not only seems to be a driver for more renters in lieu of buyers but it is also a driver for doubling or tripling up and or staying home a few more years. The Echo Boomer’s are ambitious and driven not to mention more responsible than most think. If they can live at home with little to no overhead and pay down college loans and otherwise get their financial affairs in order then they will do it.
I’m not so sure I share the same optimism as Mr. Neithercut although I consider Equity Residential to be the absolute best PM firm in America.