UNDERSTANDING THE NEW RENTER NMHC-Kingsley 2013 Survey of Apartment - PowerPoint PPT Presentation

UNDERSTANDING THE NEW RENTER NMHC-Kingsley 2013 Survey of Apartment Resident Preferences 2014 NMHC Annual Meeting David C. Smith, Vice President and COO Kingsley Associates

PROJECT OVERVIEW First annual NMHC-Kingsley Survey of Apartment Resident Preferences: Conducted in August-September 2013 Received 14,690 responses from 1,426 communities Reports available for 22 different markets Twelve (12) participating firms own / operate over 550,000 units in partnership with Kingsley Associates

AMENITIES, FEATURES & ACTIVITIES in partnership with Kingsley Associates

RESIDENTS ASKED TO INDICATE INTEREST IN VARIOUS FEATURES, AMENITIES AND ACTIVITIES 18% 93% On-site High Speed Childcare Internet in partnership with Kingsley Associates

RESIDENTS ASKED TO INDICATE INTEREST IN VARIOUS FEATURES, AMENITIES AND ACTIVITIES #1 or #2 amenity regardless of class 93% Highest in San Antonio – 96% At or above 90% for all but three markets High Speed  Austin – 89% Internet  San Diego – 88%  Las Vegas – 87% in partnership with Kingsley Associates

RESIDENTS ASKED TO INDICATE INTEREST IN VARIOUS FEATURES, AMENITIES AND ACTIVITIES More interest exists at class C communities 18% Highest in Miami – 28% On-site Interest highest for residents with children  Single with children – 36% Childcare  Spouse / partner with children – 51% in partnership with Kingsley Associates

APARTMENT FEATURES MAKE UP 13 OF THE TOP 15 RATED ITEMS Apartment Features 24 Community Amenities 16 Community Activities 7 in partnership with Kingsley Associates

GREATEST INTEREST IN HIGH SPEED INTERNET ACCESS AND PATIO / BALCONY 93% High Speed Internet Access 93% Patio / Balcony 88% Washer / Dryer in Unit 88% Garbage Disposal 85% Microwave Fitness Center 84% 83% Refrigerator with Water / Ice Dispenser Ceiling Fan 80% Package Delivery Room / Holding Area 78% Washer / Dryer Hookups 76% in partnership with Kingsley Associates

CLASS A: RESIDENTS MORE INTERESTED IN INTERIOR UPGRADES Class A Class B Class C 3.6% 3.5% 3.0% 2.8% 2.8% 2.7% 2.5% 2.4% 2.3% Valet Crown Hardwood Trash Wine Molding Floors Granite Tasting Package Counter Vaulted Kitchen Delivery Ceilings Island Room Microwave in partnership with Kingsley Associates

CLASS C: MORE INTEREST IN COMMUNITY ACTIVITIES AND TELEVISION ACCESS Class A Class B Class C 6.2% 4.8% 4.7% 3.7% 3.2% 2.4% 2.1% 2.1% 2.1% Pet- Game Organized Movie washing Cable TV Night Washer / Field Trip Fireplace Satellite Night Station Dryer TV Hookups On-site Childcare in partnership with Kingsley Associates

FEMALE RESPONDENTS MORE INTERESTED THAN MALES IN FITNESS CLASSES Fitness Classes 22.2% Crown Molding 12.6% Pet Move-In Gift 11.8% Walk-In Pantry 10.7% Pet Store Coupon 10.4% Book Club 9.4% Valet Trash Service 8.7% Hardwood Floors 8.6% Alarm System 8.5% in partnership with Kingsley Associates

IN GENERAL, COMMUNITY ACTIVITIES MORE INTERESTING TO RESIDENTS WITH LOWER INCOMES Movie Night Ice Cream Social Organized Field Trip Wine Tasting 54% 49% 47% 39% 43% 34% 30% 21% Under $41,000 - $51,000 - $75,000 - $101,000 - More than $40,000 $50,000 $74,000 $100,000 $150,000 $150,000 in partnership with Kingsley Associates

RESIDENTS IN “PRIMARY” MARKETS INDICATE HIGHER INTEREST IN ORGANIZED FIELD TRIPS Primary Secondary Tertiary 9.1% 7.4% 7.3% 6.1% 5.7% 5.6% 5.3% 4.9% 4.8% On-site Childcare On-site Pet- Organized ATM Car Related Field Trip Washer / Satellite Charging Move-in On-site Dryer in TV Station Gift Washer / Car Wash Unit Dryer Hookups in partnership with Kingsley Associates

MAINTENANCE RESPONSE TIMES in partnership with Kingsley Associates

HALF OF RESPONDENTS INDICATE 2-DAY RESPONSE TIME IS “SUFFICIENT” Within 3 Business Days Within 1 Business Day (10%) Within 1 44% 43% Business Day (42%) Within 2 40% Business Days 39% 39% 38% (49%) Under 25-34 35-44 45-54 55-64 65+ 25 in partnership with Kingsley Associates

HOUSEHOLD INCOME: RESIDENTS ON EXTREMES ARE MOST COMFORTABLE WITH 3-DAY RESPONSE TIME Within 3 Business Days is Sufficient 13.1% 12.0% 10.8% 10.8% Average: 9.8% 9.2% 8.9% 8.2% Less than $26,000 - $41,000 - $51,000 - $75,000 - $101,000 - More than $25,000 $40,000 $50,000 $74,000 $100,000 $150,000 $150,000 in partnership with Kingsley Associates

RESIDENT SATISFACTION IS LOWER WHEN RESPONSE TIMES ARE LONGER THAN 24 HOURS 4.0% 24+ Hours Within 24 Hours 2004 -6.8% 2012 -9.7% -10.0% 2013 2007 2011 -10.0% -10.7% -11.0% in partnership with Kingsley Associates

PACKAGE LOCKER AREA in partnership with Kingsley Associates

TWO-THIRDS OF RESIDENTS INDICATE THAT A PACKAGE LOCKER AREA IS IMPORTANT Important / Very Important Very Important 74% 69% 68% 63% Very Important Neutral (34%) (25%) 38% 35% 34% 32% Important (34%) Studio / 1 2 3 Efficiency Bedroom Bedroom Bedroom in partnership with Kingsley Associates

OLDER RESIDENTS LESS INTERESTED IN PACKAGE LOCKER AREA 72% 70% 69% 68% 60% 53% 38% 37% 35% 32% 29% 20% Under 25 25-34 35-44 45-54 55-64 65+ Important / Very Important Very Important in partnership with Kingsley Associates

“GREEN” / SUSTAINABILITY in partnership with Kingsley Associates

MAJORITY OF RESIDENTS INTERESTED IN “GREEN,” BUT NOT A HIGH PRIORITY IN APARTMENT SEARCH % High Priority In Lease Decision ("Green" Practices) 30% 30% 33% 36% 37% 37% 37% 36% Both No Interest (35%) (29%) Green Design (14%) Green Practices Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (23%) 2012 2013 in partnership with Kingsley Associates

PLURALITY OF RESIDENTS ARE “NEUTRAL” ON SUSTAINABILITY AS A LEASE DECISION PRIORITY High Priority Neutral Low Priority 45% 43% 37% 36% 19% 19% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 in partnership with Kingsley Associates

FACEBOOK AND ONLINE REVIEWS in partnership with Kingsley Associates

FACEBOOK: LESS THAN A THIRD OF RESIDENTS EXPECT THEIR COMMUNITY TO HAVE A PAGE 33% 33% 32% Yes (30%) 26% No 21% (70%) 19% Under 25-34 35-44 45-54 55-64 65+ 25 in partnership with Kingsley Associates

FINDING YOUR COMMUNITY: COMMUNITY WEBSITE THE PRIMARY SOURCE FOR 3 OUT OF 10 RESIDENTS 29% 26% 15% 10% 8% Community Google / Apartment Rent.com Apartment Website Google+ Guide Ratings in partnership with Kingsley Associates

UNDERSTANDING THE NEW RENTER NMHC-Kingsley 2013 Survey of Apartment Resident Preferences 2014 NMHC Annual Meeting David C. Smith, Vice President and COO Kingsley Associates in partnership with Kingsley Associates