Evolving Resident Demographics - J Turner Research · Evolving Resident Demographics 6 of 20 Reaching Renters Which two social media channels do you use most frequently? Facebook

Evolving Resident DemographicsMarketing to the Millennial & Baby Boomer Generations

July 2011

Evolving Resident Demographics

Reaching RentersWhich two social media channels do you use most frequently?

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Table of Contents

3 About J Turner Research

4 Objective and Value

4 About the Survey

4 Key Findings4 Reaching Renters5 Rental Preferences

5 Demographic Breakdown

6 Reaching Renters6 Which two social media channels do you use most frequently?7 Have you ever visited an apartment community’s social networking page on Facebook, MySpace, Twitter, LinkedIn, Orkut, etc.?8 What are the three primary sources you used to find your current apartment community?9 If you had to choose a single source for your apartment search, which would you choose? 10 Select two of the following responses which best describe “word of mouth” from your perspective.

11 Rental Selection Criteria11 What was the most important factor influencing your decision to rent at your community? 11 Price Point

12 Apartment Lifestyle Preferences12 What three aspects of the “Apartment Lifestyle” were you looking for in a community?13 Apartment Lifestyle

14 Communication with the Community14 How would you prefer the community communicate with you?15 How would you communicate with the community about a maintenance request or problem?16 What kind of community sponsored events do you participate in?

17 Amenity, Feature and Service Preferences17 Friends versus Amenities: If you had to choose between one of the following communities, which would you choose?18 Which are the five most important common area amenities to you?19 Which are the five most important apartment amenities to you?20 Which are the five most important community amenities to you?


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About J Turner Research

Based in Houston, J Turner Research specializes in developing and executing innovative and affordable research services for the multifamily industry. The company utilizes email based surveys to accurately measure perceptions of prospects and current residents to optimize operational and marketing efficiencies. With its monthly resident satisfaction trending and real time prospect feedback, J Turner Research provides real time operational intelligence to ownership.

J Turner Research also has developed a new social media application which provides frequent, original resident content to property Facebook pages.

For more information, please call (281) 558-4840 or visit www.jturnerresearch.com.


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Objective and Value

The purpose of this study is to determine the attitudes and views of renters across different generational demographics. With the speed of technology today, there is a schism between how different generations want to be communicated with, what they view as important in their communities, how they view amenities and what determines their decision to rent.

The data in this study offers insight about each generation of apartment renter. The survey covered residents from the millennial generation to “The Silent Generation,” and measures preferences, perspectives and values related to apartment search and rental life. Insights from this study enable operators of apartment communities to target their message and marketing to generational subsets and developers of communities by knowing what prospects are seeking.

Key Findings

The Millennial Generation, ages 18-30, dominated with 47 percent of respondents, indicating they are the generation that apartment owners should target in marketing and communications.

Reaching RentersVisiting a property’s social networking page is becoming more common, especially at properties that are actively engaged in social media.

• Facebook is the most popular social media channel across all generations. Twitter is a distant second but more popular with the younger generation. • “Drive-by” ranks across all generations as a popular source used to find apartments but is more important to the older generations. • Internet marketing is the source least used by the older generation. • Craigslist is used by Millennials by a significant margin over Baby Boomers (ages 45-65) and the Silent Generation (ages 66+). • Word-of-mouth is the single most important source for the Silent Generation respondents.

About the survey

This study was presented to an educational session of the National Apartment Association in June 2011. With the help of DEI Communities and Forest City Residential portfolios, a 14-question, email survey was distributed to 12,646 residents at 71 communities nationwide. J Turner Research secured 4,275 responses representing a 33 percent response rate. Some material enclosed is from a two year on-going survey tracking trends in apartment resident use of social networking as well.

For the purpose of the survey the population was divided into the following generation demographics:

• Millennial Generation (Ages 18-30) • Generation X (Ages 31-44)

• Baby Boomer Generation (Ages 45-65) • Silent Generation (Ages 66+)


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Key Findings [cont.]

Demographic Breakdown

Rental PreferencesThe decision to rent is based primarily on location. Price matters less to older survey participants by almost two to one. Renters in general like to communicate by email with the management office. However, they prefer to have more direct contact with the staff (phone and face-to-face) when communicating situations that are important to them, such as maintenance requests and concerns.

Regarding common area amenities, fitness center and parking, rank the highest. The top amenity preferences, within the unit, boil down to stainless steel appliances for younger respondents and window coverings for older respondents.

There are many common wants and needs among all generations, but it is recognizing the differences between them that can help operators and managers target messages that will appeal to a particular group. There is an opportunity to establish “prospect profiles” based on this data. Understanding unique audiences enables better marketing strategies for more productive leasing.

0% 25% 50%

3%

20%

30%

47%Millennial Generation {Ages 18-30}

Generation X {Ages 31-44}

Baby Boomer Generation {Ages 45-65}

Silent Generation {Ages 66+}

N = 4,275


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Facebook is the clear choice among all demographic groups, with Twitter strongest among the younger generations.

Facebook Usage50%

0%

100%

40%

73.15%83.38%91.00%97.03%

Mill

enni

al G

ener

atio

n

Gen

erat

ion

X

Bab

y B

oom

er G

ener

atio

n

Sile

nt G

ener

atio

n

Twitter Usage

21.30%18.38%24.90%35.86%

Mill

enni

al G

ener

atio

n

Gen

erat

ion

X

Bab

y B

oom

er G

ener

atio

n

Sile

nt G

ener

atio

n

Facebook

92%

30%

30%

29%

9%

Twitter

LinkedIn

Other

MySpace

By Demographic

Overall

100%

0%

97%

36%

27%

Face

book

Twit

ter

Link

edIn

Millennial Generation

83%

34%

18%

Face

book

Twit

ter

Link

edIn

Baby Boomer Generation

73%

23% 21%

Face

book

Twit

ter

Link

ed

In

Silent Generation

91%

34%

25%

Face

book

Twit

ter

Link

edIn

Generation X


Reaching Renters

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Have you ever visited an apartment community’s social networking page on Facebook, MySpace, Twitter, LinkedIn, Orkut, etc.?

Aggregate

Not Active Properties

Active Properties*

20%

20%

20%

25%

30%

15%

15%

15%

10%

10%

10%

5%

5%

5%

0%

0%

Jan

2010

Feb

2010

Mar

201

0

Apr 2

010

May

201

0

Jun

2010

Jul 2

010

Aug

2010

Sept

201

0

Oct

201

0

Nov

201

0

Dec

201

0

Jan

2011

Feb

2011

Mar

201

1

Apr 2

011

May

201

1

Jun

2011

Jul 2

011

Aug

2011

0%

*Active Properties are engaged in social media (primarily Facebook and Twitter). Visitors to an apartment community’s social networking page are increasing, particularly for highly engaged properties.

7%

7% 7%

9%

5% 6% 6%

7%

9% 9%10%

10%

10% 10%

12%14%14% 14%

16% 16%

12%

18%

16%

25%23%

21% 21%

23%

10% 10%11% 12% 12%

16% 16%17%

15% 15%

5% 6% 6% 6% 6%


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Reaching RentersWhat are the three primary sources you used to find your current apartment community?

All generations except the Silent Generation clearly prefer searching for apartments on the Internet. Drive-by is still important for all generations,

but is more important for Baby Boomers and the Silent Generation.

Craigslist has significantly higher following among younger renters, and practically no importance for the Baby Boomers or Silent Generation.

Craigslist Across Demographics

0%

12%

>1%4%10%

11%

Mil

lenn

ial G

ener

atio

n

Gen

erat

ion

X

Bab

y B

oom

er G

ener

atio

n

Sile

nt G

ener

atio

n

Internet Search Engines

Apartment Listing Sites

Drive-By/Walk-In

Word-of-Mouth

Apartment Review Sites

Craigslist

Apartment Magazines

Other

Community Website

Newspaper Classifieds

Smartphone/Mobile Search

Facebook

73%

56%

46%

36%

22%

20%

16%

10%

7%

6%

4%

3%

0% 80%

By Demographic

Overall

78%

74%

63%68%

60%

55% 57% 59%

40% 45%50%

43%

100%

0%

Inte

rnet

sea

rch

engi

nes

Inte

rnet

sea

rch

engi

nes

Inte

rnet

sea

rch

engi

nes

Dri

ve-b

y

Dri

ve-b

y

Dri

ve-b

y

Apa

rtm

ent l

isti

ng s

ites

Apa

rtm

ent

listi

ng s

ites

Apa

rtm

ent l

isti

ng s

ites

Apa

rtm

ent l

isti

ng s

ites

Dri

ve-b

y

Wor

d of

Mou

th


Baby Boomer Generation Silent GenerationGeneration X


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Reaching RentersIf you had to choose a single source for your apartment search, which would you choose?

By Demographic

Internet Search Engines

Apartment Listing Sites

Drive-By/Walk-In

Word-of-Mouth

Craigslist

Apartment Review Sites

Apartment Magazines

Other

Community Website

Newspaper Classifieds

Smartphone/Mobile Search

Facebook

31%

26%

10%

10%

9%

6%

3%

2%

1%

1%

1%

0%

0% 35%

Overall

40%

0%

Inte

rnet

sea

rch

engi

nes

Inte

rnet

sea

rch

engi

nes

Inte

rnet

sea

rch

engi

nes

Inte

rnet

sea

rch

engi

nes

Apa

rtm

ent l

isti

ng s

ites

Apa

rtm

ent l

isti

ng s

ites

Apa

rtm

ent

listi

ng s

ites

Apa

rtm

ent l

isti

ng s

ites

Cra

igsl

ist

Dri

ve-b

y

Wor

d of

mou

th

Cra

igsl

ist



31% 32%31%

21%

28%

26% 26%

17%

11%

10%

14%

23%


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Reaching RentersSelect two of the following responses which best describe “word of mouth” from your perspective.

By Demographic

A One-on-One Interaction with a Trusted Friend, Colleague or Family Member

An Interaction with a Group of Individuals in a Social Setting

A One-on-One Interaction with a Person or Acquaintance I Don’t Know Very Well

Researching Comments and Posts on Websites Featuring Reviews on Products

or Services from Individuals I Don’t Know

An Interaction with a Group of People I am Connected to via Social Media

like Facebook or Twitter

Information I Gather from Traditional Broadcast and Media Outlets

Other

85%

43%

27%

24%

11%

8%

3%

0% 100%

Overall

85% 85%83%

80%

46%

40% 40%38%

30%26%

24% 23%

100%

0%

A A A AB B B BC C C C



A A One-on-One Interaction with a Trusted Friend, Colleague or Family MemberB An Interaction with a Group of Individuals in a Social SettingC A One-on-One Interaction with a Person or Acquaintance I Don’t Know Very Well


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What was the most important factor influencing your decision to rent at your community?

Rental Selection Criteria

Location is the primary decision factor to rent across all demographics, with high quality units ranking as the second determining factor. Price point is less important for Baby Boomers than for any other demographic.

Price Point0%

30%

22.45% 17.79% 12.82% 17.39%

Location

High Quality Apartments/Units

Price Point

Other

Community Amenities

Referral from Friend

None of the Above

Positive Online Reviews about the Community

36%

26%

19%

6%

5%

3%

2%

2%

0% 40%

By Demographic

Mil

lenn

ial G

ener

atio

n

Gen

erat

ion

X

Bab

y B

oom

er G

ener

atio

n

Sile

nt G

ener

atio

n

Overall

33%37%

42%

39%

27% 28%

22%25%

22%

18%

13%17%

50%

0%

Loca

tion

Loca

tion

Loca

tion

Loca

tion

Hig

h qu

alit

y un

its

Hig

h qu

alit

y un

its

Hig

h qu

alit

y un

its

Hig

h qu

alit

y un

its

Pri

ce p

oint

Pri

ce p

oint

Pri

ce p

oint

Pri

ce p

oint




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What three aspects of the “Apartment Lifestyle” were you looking for in a community?

Apartment Lifestyle Preferences

Location - Proximity to Work or Transportation

Value for Price

Condition and Quality of my Living Space

Quiet Place to Live

Maintenance-free Living (community manages all repairs or issues with my apartment)

Location - Proximity to Restaurants/Bars/Shopping

Location - Proximity to Family and/or Friends

Location - Proximity to Schools/Hospitals

Social Activities within a Community

Downsizing Lifestyle from Previous Home Ownership

Other

Opportunity to Meet New People with Similar Interests

Wanted/Needed to Move Out of My Parent’s House

46%

46%

61%

45%

33%

26%

4%

3%

10%

9%

7%

5%

5%

60% 80%0% 20% 40%

Overall


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Location continues to be an important lifestyle aspect for most demographic categories, however it is of lesser importance for the Silent Generation. A quiet place to live and maintenance-free living move up in importance for older renters.

Apartment Lifestyle: Second Choices

By Demographic60%

60%

0%

Loca

tion

Loca

tion

Loca

tion

Qui

et p

lace

to li

ve

Qui

et p

lace

to li

ve

Val

ue fo

r pr

ice

Val

ue fo

r pr

ice

Con

diti

on &

qua

lity

of

my

livin

g sp

ace

Con

diti

on &

qua

lity

of

my

livin

g sp

ace

Con

diti

on &

qua

lity

of

my

livin

g sp

ace

Mai

nten

ance

-free

livi

ng

Mai

nten

ance

-free

livi

ng



63% 62%

56%53% 53%

45% 45%49%45%

43% 42%

Apartment Lifestyle Preferences

0%

60%41.18% 27.26%52.70% 42.84%

Bab

y B

oom

er G

ener

atio

n

Bab

y B

oom

er G

ener

atio

n

Mill

enni

al G

ener

atio

n

Mill

enni

al G

ener

atio

n

Quiet Place to Live Maintenance-free Living


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How would you prefer the community communicate with you?

Communication with the Community

By Demographic

Text Message

Landline Phone

In-Person Visit

Facebook

Letter Outside and/or Under My Apartment Door

None of the Above

Other

Twitter

Community Portal

Mobile Phone

Email 71%

12%

8%

3%

1%

1%

1%

1%

1%

0%

0%

60% 80%0% 20% 40%

Overall

72% 74%

67%

54%

11% 11%16%

23%

10%7% 6% 9%

100%

0% A

A Email B Letter Outside Apartment Door C Mobile Phone D Landline Phone

A A AC C C DB B B B




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How would you communicate with the community about a maintenance request or problem?


Communication preferences boil down to this, residents want you to communicate with them by email, but they want to communicate with you more directly by phone or face-to-face.

By Demographic

Walk Over to the Leasing Office

Email the Leasing Office

Send a Message Through the Community Portal

Other

Text the Leasing Office

Post your Problem/Complaint on Facebook or an Apartment Review Website

Call the Leasing Office 45%

21%

18%

13%

3%

1%

0%

60%0% 20% 40%

Overall

44% 43%51%

21%

31%

17% 20%

9%

60%

0%

Cal

l

Cal

l

Cal

l

Cal

l

Em

ail

Em

ail

Em

ail

Em

ail

Wal

k ov

er

Wal

k ov

er

Wal

k ov

er

Wal

k ov

er



21%

48%

21%

16%


16 of 20

What kind of community sponsored events do you participate in?


Social Mixers

Pool Parties

Movie Night

Organized Fitness Classes

On-Site Charitable Functions

Volunteer Opportunities

I Do Not Participate 56%

26%

16%

10%

9%

8%

7%

60%0% 20% 40%

Overall

By Demographic

60%

52% 54% 53%

28% 28%34%

17% 19%

12% 12%

60%

0%

I do

not

par

tici

pate

I do

not

par

tici

pate

I do

not

par

tici

pate

I do

not

par

tici

pate

Poo

l pa

rtie

s

Poo

l pa

rtie

s

Poo

l pa

rtie

s

Org

aniz

ed

fitne

ss

clas

ses

Soci

al m

ixer

s

Soci

al m

ixer

s

Soci

al m

ixer

s

Soci

al m

ixer

s



23%


17 of 20

Friends versus Amenities: If you had to choose between one of the following communities, which would you choose?

Amenity, Feature and Service Preferences

By Demographic


76%24%

Overall

80%20%

Generation X

82%

18%

Silent Generation

87%

13%


87%

13%

A community where my friends live but doesn’t offer all the amenities I want

A community that offers all the amenities I want, but I don’t know anyone else who lives there


18 of 20

Which are the five most important common area amenities to you?


Parking

Fitness Center

Outdoor Pool

Additional Storage

Access to Walking/Bike Paths

Central Wi-Fi

Indoor Pool

Fireplace/Outdoor Living Space

Hot Tub

Extended Common Living Room Space

81%

81%

54%

37%

36%

36%

27%

26%

20%

16%

100%0%

Dog Park

Movie/Media Room

Bike Storage

Business Center

Tennis Court

Yoga Studio

Conference Room

Ability to Reserve a Dining Space

Dog Wash Area

15%

15%

12%

11%

10%

8%

7%

6%

3%

100%0%

By Demographic

Although most commonly desired area amenities are shared across all generations, there are slight nuances between age groups. Leasing staff should emphasize the differences to the prospects from their perspective age groups. For example, Millenials want to hear that the property has central Wi-Fi and then the other amenities, while Baby Boomers want to hear about additional storage. Lead with the generational difference.

Top 5 Common Area Amenities

83% 81% 83%

78%81% 82%

76%

68%

59%

54%

48%53%

100%

0%


#1 Fitness Center

#2 Parking

#3 Outdoor Pool

#4 Central Wi-Fi

#5 Access to Walking/ Biking Paths


#1 Parking

#2 Fitness Center

#3 Additional Storage

#4 Outdoor Pool

#5 Access to Walking/ Biking Paths

Fitn

ess

cent

er

Fitn

ess

cent

er

Fitn

ess

cent

er

Fitn

ess

cent

er

Par

king

Add

itio

nal s

tora

ge

Add

itio

nal s

tora

ge

Par

king

Par

king

Par

king

Out

door

poo

l

Out

door

poo

l



Overall


19 of 20

Amenity, Feature and Service PreferencesWhich are the five most important apartment amenities to you?

By Demographic

Although most apartment unit amenity requirements are shared across all generations, there are slight nuances between age groups. As with common area amenities, leasing staff should emphasize the differences to the prospects from their perspective age groups. For example, Millennials want to hear that the property has stainless steel appliances as well as the other amenities while Baby Boomers want to hear about window coverings.

Top 5 Apartment Amenities


#1 Walk-In Closets

#2 In-Unit Laundry

#3 Balcony

#4 All Utilities Included

#5 Stainless Steel Appliances


#1 In-Unit Laundry

#2 Walk-In Closets

#3 Balcony

#4 All Utilities Included

#5 Window Coverings/Blinds

Walk-In ClosetsIn-Unit Laundry Facilities

Balcony/Outdoor AreaAll Utilities Included

Storage PantryStainless Steel Appliances

Wood FlooringOversized Kitchen

Window Coverings/BlindsCarpeting

Gas CookingUpgraded Lighting Fixtures

Kitchen IslandCeramic Tile in Bathrooms

Wall Mount for Flat Screen TVBuilt in Bookshelves

Double Sinks in Master BathDouble Basin Sinks

Hard Wiring for Telephones

70%

70%

52%

45%

33%

31%

31%

30%

30%

24%

22%

13%

12%

11%

8%

7%

6%

4%

3%

0% 80%

Overall

70% 73% 72%68%69% 70% 68%

66%

53%49% 52% 50%

100%

0%

Wal

k-in

clo

sets

Wal

k-in

clo

sets

Wal

k-in

clo

sets

Wal

k-in

clo

sets

Bal

cony

/out

door

area

Bal

cony

/out

door

area

Bal

cony

/out

door

area

Bal

cony

/out

door

area

In-u

nit l

aund

ry

In-u

nit l

aund

ry

In-u

nit l

aund

ry

In-u

nit l

aund

ry




20 of 20

Which are the five most important community amenities to you?


Overall

By Demographic

Copyright © 2011 by J Turner Research, LP. All materials are the copyrighted works of J Turner Research, LP. All Rights Reserved.

24-Hour Service Request Guarantee

24-Hour Security 85%

80%

29%

29%

29%

40%

53%

71%

23%

18%

15%

10%

8%

4%

4%

100%0%

Online Payments

Package Delivery Services

Apartment Cleaning Services

Organized Fitness Classes

Coffee/Breakfast Bar

Concierge Services

Organized Community Social Events

Apartment Painting Services

Social Media that share Community Activities

On-Site Charitable Functions/Volunteer Opportunities

Fluff and Fold Services

Dog Walking Services

Plant Watering Services

84% 84% 86% 88%

80% 80% 78%

87%

75% 75%

61%

51%

100%

0%

24-h

our

secu

rity

24-h

our

secu

rity

24-h

our

secu

rity

24-h

our

secu

rity

Onl

ine

paym

ents

Onl

ine

paym

ents

Onl

ine

paym

ents

Pac

kage

del

iver

y se

rvic

e

24-h

our

serv

ice

requ

est

guar

ante

e

24-h

our

serv

ice

requ

est

guar

ante

e

24-h

our

serv

ice

requ

est

guar

ante

e

24-h

our

serv

ice

requ

est

guar

ante

e



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Evolving Resident Demographics - J Turner Research · Evolving Resident Demographics 6 of 20 Reaching Renters Which two social media channels do you use most frequently? Facebook