Apartment management: analyzing the needs of high-end apartment residents

Page 1 of 4 Journal of Property Management,  July-August, 1992  by James P. Lynch This article examines results of a survey of residents at "institutional-grade" garden apartments in several cities. The intent of the survey was to determine the characteristics of residents in high-end (luxury) garden apartments and their preferences regarding apartment living. A better understanding of these residents and their opinions about apartment living can be translated into highly practical (and strategic) property management and acquisitions decisions. In property management, for example, this knowledge can translate into more focused marketing efforts as well as specific ways to improve property features, amenities, and management services. In property acquisitions, resident-based surveys provide extremely valuable information regarding the features, amenities, and services that garden apartment residents look for in selecting their apartment homes. The analyses and conclusions made in this article apply to high-end (luxury) garden apartment properties and their residents and are not necessarily applicable to other classes or types of apartment properties or apartment residents. Methodology Our firm, Metric Realty, selected 13 institutional-grade garden apartment communities in its management portfolio to include in the survey project. The term "institutional grade" refers to high-quality properties that are typically located in upper-end submarkets or neighborhoods within major metropolitan areas. The properties included in the survey are located throughout the country. They range in size from 148 to 734 units and their operating histories range from two to 14 years. Each property can be classified as garden-style, with two-or three-story buildings in a series of clusters on a site of several acres. The balance of a garden apartment property contains ample open space as well as recreational facilities such as pools, tennis courts, and a clubhouse. Our on-site staff distributed 3,337 questionnaires, 1,821 of which were returned. The over-all response rate was 54.6 percent and ranged from 49.7 to 65.6 percent among properties. This high response rate is directly attributable to an incentive program, which was promoted at the property level by on-site staff. The questionnaires included 34 questions, three of which allowed for open-ended responses. Demographic characteristics The age distribution, marital status, income levels, and occupations of current residents provide important information about the present and future demand for garden apartments. Understanding the demographic composition of garden apartment residents is also essential for developing focused marketing plans for tenant attraction and retention purposes. * Age distribution, The greatest concentration of garden apartment residents lies within the 25-to-29 age bracket, accounting for 31.7 percent of all renter households. A sizable portion of renter households (63.2 percent) are headed by residents in the 18-to-34 age brackets. Expanding the age brackets to include renters aged 18 to 39 accounts for nearly 75 percent of all households. Contrary to the belief that empty nester and elderly households comprise a significant share of garden apartment demand, Figure 1 reveals that renters aged 50 and above constitute only 11.9 percent of all renter households. * Gender. Approximately 60 percent of all survey respondents were female. * Marital status. Singles account for 65.5 percent of all garden apartment residents, with married households accounting for 30.3 percent. The high proportion of singles also explains why very few households reported to be living with children. Of all respondents, 90.6 percent reported that they did not live with children. For married households, 82.4 percent are reported to be living without children. However, in some instances the abundance of childless households may also be influenced by the lack of availability of larger apartments. * Income. While the vast majority of garden apartment residents have not yet achieved their peak income potential, they do constitute the more affluent tier of the renter population with incomes often exceeding area-wide average incomes. As Figure 2 indicates, more than 75 percent of all renter households earn $30,000 or more. The distribution of households by income group suggests that the mean household income falls within the $40,000 to $45,000 range. The household levels of garden apartment residents typically lie well above the average household income levels for the metropolitan areas in which the properties are located. * Occupations. The high proportion of garden apartment residents who hold white-collar positions directly contributes to the relatively high household incomes of the group. As Figure 3 illustrates, 41.4 percent of all residents hold professional jobs and an additional 15.1 percent hold managerial positions. Of course, the occupational composition of garden apartment residents is directly related to their ability to afford these apartments, as well as to the types of businesses and industries located within a given area. * Summary. Although the survey results do not apply to all residents of garden apartments, the preceding discussion suggests that young, single, white-collar professionals constitute the principal source of demand for high-end garden apartments. Prev - Next >> < Prev   Next >