What do cities with universities and growth opportunities have in common? Young, entrepreneurial, and energetic millennials. Their presence, in turn, creates a suitable market for multifamily housing and tech companies, each seeking to fulfil crucial needs demanded by city residents. As a property developer, owner, or manager, it makes sense to go where the market is. Multi-family residential units utilize the scarce lands in urban settings adequately and provide affordable housing units for young people.
The Housing Challenge and Opportunity
The growing population of young people in cities such as Chicago, Madison, and Milwaukee, however, creates ripe grounds for companies, especially those in the tech industry. There is a readily educated and willing workforce, and suitable spaces and tax incentives.
Unfortunately, while the compensation for the jobs is great, it may not cover the housing costs. Permanent housing schemes that favor the affluent are common scenarios in tech markets. Yet, young professionals aren’t looking to purchase a home. Millennials in these cities are looking for social and urban atmospheres and affordable housing. They are in pursuit of higher education and employment opportunities and aren’t financially stable enough to purchase houses. Buying a house is a permanent and in most circumstances, a costly venture.
Apartments and duplexes provide an affordable option for the young. Instead of purchasing homes, people can secure leases. Since the employment opportunities, education institutions, an urban environment, and well-paying jobs continue to exist, there is a sturdy market for low-cost housing.
However, it’s not just employment and higher education that creates a suitable market for low-cost housing. It’s also essential to factor in nightlife. The impact of a thriving hospitality industry attracts the young. Cities with progressive cultures and active music and movie scenes draw in young entrepreneurs who hope to take advantage of the situation. The mixture of young business-people, workers, and students creates a high demand for affordable housing units.
What Are The Challenges?
The huge populations come with their challenges. As more landlords rent out housing units, the parking issue becomes more challenging. For developers constructing towers and apartment complexes, developing parking, especially underground, increases the cost of construction significantly. Without a return on investment, most developers may shy away from creating large parking. A solution that matches people to available parking is, therefore, essential.
Also, as young people grow, they proceed to hunt for single-housing solutions. Unfortunately, these are increasingly harder to find. A demand that’s higher than the supply means that landlords have more power. As they raise their housing prices, renting becomes more costly. Low-cost housing complexes address this problem by creating different housing units within the same compound while providing shared resources such as parking, gardens, and pools.
Multi-family housing units are also essential because they cater to the workers in the hospitality industry that are neither tech workers, executives, or young families. The hotel, restaurant, and nightlife workers need housing too. Developers can squeeze in different housing units and systems to ensure that every need is sustainably met. Since the demand is high, the return on investment is more than assured.
How Technology Can Help
Cities have a demand and supply for affordable and safe parking. As the population in cities continues to expand, the parking crisis grows. Through tech, property managers, and real estate owners in the cities can rent out unused parking spaces to city residents.
Parking Made Easier With ParqEx
With ParqEx, both owners and renters can benefit. Drivers can access private and safe parking within the city while owners can make money from their assets, while keeping their tenants’ vehicles safe. It’s a win-win situation. Young people are more than willing to take advantage of technology, so why shouldn’t you?