At a multi-family roundtable discussion, several questions were asked and answered about how Generation Y and WINKs (Women with Income and No Kids) will impact the multifamily industry in Orlando. Generation Y is a large demographic that is starting to enter their prime rental years, and they prefer more urban locations with walkability and amenities. WINKs specifically want convenient locations near work and amenities like fitness centers. While sustainable design is important to some renters, most care more about cost, safety, unit features and location over "green" features. Younger renters are also less willing to pay more for environmental compatibility.

1. Multi-­‐Family
Roundtable
November
10,
2010
Question
and
Answer
Session
Roundtable
Discussion
Leaders:
Alan
Kolar-­‐
Mill
Creek
Residential
Trust,
LLC
Gregg
Logan-­‐
RCLCO
-­‐
Robert
Charles
Lesser
Randy
Anderson-­‐
UCF
Daryl
Spradley-­‐
Charles
Wayne
Stephanie
Brown-­‐
Riverstone
Residential
Discussion
Questions:
QUESTION:
“Two
demographic
groups
with
increasing
influence
are
the
Generation
Y
(born
between
1981
and
1999)
and
WINKs
(Women
with
Incomes
and
No
Kids).
How
will
these
two
groups
impact
the
multifamily
industry
in
Orlando?”
GREGG: “Gen Y First - WINK are a subset of Gen Y so let me address Gen Y First.
i) 78,000,000 Gen Y nationally (1981 to 2000)
(1) Between 2008 and 2020 57 million will reach age 22, beginning of prime
rental age
(2) So far, more are going in to existing rental properties, renovated properties
and some in new but non-luxury properties due to issues of affordability.
Also competition with condo’s and other properties available for rent due
to over-supply on the for-sale side.
(3) Have been hit hard by the economy – many have moved back home with
mom and dad, and those in apartments have at least one roommate, often
more; as economy improves and they “Un-Pack” this will have a very
positive impact on rental demand.
(a) So far due to economy, Gen Y’s not yet having the impact we expect.
But it’s coming.
(4) Long term demand looks very good in terms of demand for new product,
for the next 10 years
(5) Central Florida, about 677,752, age 10 to 29 currently; they enter the
market over a 19 year period, so it’s a sizeable impact that should equate
to demand for over 10,000 units annually on average
(a) Of those of rental age, fairly split between urban and suburban areas

2. (b) Our research has shown strong interest in places with urban amenities
among this group, BUT important to note that they split about
60%/40% in terms of urban versus suburban preference
(i) The point is MORE Urban demand than in the past, but lots of
demand for Suburban in the right locations, ie close to restaurants
and shopping and employment – they want to live where the action
is, which is mitigated by what they can afford – right now they are
making compromises due to what they can afford.
(ii) They do like walkable places over driveable, mixed-use areas
versus single use.
(iii)Smaller better designed units and strong amenities – fitness
centers, social pool area, internet café, gaming rooms.
QUESTION:
“WINK’s
Women
Income
No
Kids,
in
their
20’s,
well
educated,
typically
earning
over
$50,000,
what’s
their
influence
likely
to
be?”
GREGG:
ii) Delaying marriage, renter by choice, like walkable neighborhoods, accepting
of smaller but nicer; want security
iii) Care about your “Green Initiatives” even if they’re not going to pay you a
premium for them.
iv) Work life balance is especially important to them – want convenience.
v) Like things like fitness centers, quiet sitting areasa, libraries, that you have a
recycling center on site
vi) Somewhat more urban and/or urban suburban oriented than Gen Y overall.
vii) Select the property first, then the unit itself.
viii) There are 423,000 Gen Y women in Orlando MSA; about 296,000 are
potentially WINKS, childless and not married; that’s not income qualified.
QUESTION:
“There
has
been
a
lot
of
focus
on
sustainable
design
and
“green
living”
by
the
media
and
local
municipalities.
How
important
are
“green
features”
in
apartment
homes
for
renters?
What
are
the
desired
features,
amenities
and
pricing
in
new
apartment
product?”
ix) GREGG:
x) We did a national survey of Renters, and 45% told us that they care about the
environment and will take actions and spend money to protect it.

3. xi) However in terms of what drives them to rent an apartment, Cost, Safety, Unit
Features and Design, Proximity to Work, Proximity to Shopping and
Entertainment, score a lot higher than “Green” features or attributes.
xii) Only about 37% of renters connect their home with something that impacts
the Environment, and therefore their choice about where to live. However,
about 20% of renters say they’re interested in renting a “Green” apartment if
they can find one. Younger renters in particular less likely to pay for
environmental compatibility.
xiii) We looked at “Me” Green versus “We Green” in a large survey of renters
sponsors by several large Apartment Developers nationall. We found that “We
green” components influence choice of community and length of stay for less
than 15% of renters
xiv) “Me” Green includes Energy Savings - Energy-savings may influence
choice of community for 25% of renters, but less than 10% of renters willing
to pay more for an energy saving community
xv) Almost 20% of renters willing to pay more for a community that provides
better indoor air quality
xvi) LEED may be industry standard for development community, but renters
don’t know the brand. Energy Star on the other hand is well known and a
benefit.
xvii) That said, we believe our survey shows MANY opportunities for low-cost
“greening” that address important motivating factors