Life’s too short to live in an ugly house.
Let’s face it, most rental housing is ugly. Many times, there’s very little thought, theme or concept.
Design is probably the most overlooked economic variable in real estate.
And it’s not necessarily the interiors. Its the exteriors too.
The Curb appeal. Sense of arrival. Light. Scale. Tone. Concept. Identifiable themes.
And bigger is not always better. Humans strive to be comfortable, not overwhelmed. Honestly, building bigger is easier. Small requires more thought. And its more fun. That goes for sites and structures.
Aesthetics affect economics.
If the AirBnb craze has taught us anything, its that design matters.
Good design doesn’t necessarily need to cost more, it just requires another level of thought.
And most investors are concerned with controlling costs and cost savings in construction and operations to optimize financial performance, which is absolutely necessary.
But what’s not always considered is how to grow revenue, the top line, through appealing design - both inside and out.
As affordability becomes the single largest issue in housing, small is in. And design is the next differentiator.
Everybody’s got an opinion, and most lack the big picture.
Everybody’s got their own selfish interest. That’s natural. But when owners are faced with critical decisions, they get input from their entire team. And each looks through its own lens to evaluate.
The architect typically looks at design, with less consideration for cost. The builder is mostly concerned with methods and means. But who sees all of it and represents owner?
And amateur investors are at an even worse disadvantage. Many times, they don’t even know which questions to ask, much less know how to assess the answers and options they are given.
Worse, they ask their friends or family. Don’t get me started.
Here’s what I see.
After 3 decades of doing it all, here’s 3 ways I see how to take advantage of the next opportunity in housing.
1 Focus on the renter by choice (RBC)
One of the largest categories of renters are the ones choosing renting as a lifestyle choice, not necessarily a forced economic circumstance that limits options.
2 Pick a persona to target
If you’re marketing to everyone, you’re marketing to no one.
There’s several RBC’s that represent an opportunity to capitalize on superior aesthetic design to drive rental premiums - design that elicits an emotional response that expands price elasticity.
3 Market like its luxury
Consumers have become accustomed to consuming video and advanced digital marketing. Give them what they’re used to seeing. This is somewhat new for rental housing.
