LOS ANGELES—"There is no longer that stigma of renting." That is according to Erica Linn, manager of research and publications at Yardi.
Linn, who recently spoke on a "Boomer Wars" panel at RealShare Apartments 2015 here in Los Angeles, said that housing is no longer looked at as a fantastic investment. "There is a changing attitude existing today as well as a huge gap between class A and class B rents."
And the profile you are going to get through lease up isn't your ultimate profile," explained Greg Willett, VP of MPF Research. "It changes by year two."
Brad Cribbins, COO of Alliance Residential, who took a sample set of its product types over the nation, said that in the downtown product, the average age was 32. "This is a group of people willing to pay the largest percentage of their salary."
That group, Cribbins said, "want convenience and are willing to spend more for that."
Another group Cribbins pointed to is "the urban group," who is at an average age of 37, who are renters by choice. "They are clearly choosing to rent because of the lifestyle that comes along with it."
But Cribbins said that many still have interest in owning a home. But he agrees that the renting stigma is gone for the higher end class. "The idea that you can rent what you want for convenience and for quality has been more prolific. You are trying to appeal to a group of people that want high-end finishes, are looking for open spaces and flexibity."
He added that one thing that is important for a multifamily developer and owner to understand is the submarket and target group you are after. "It is very market specific and asset specific."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
