{"id":13682,"date":"2023-03-01T12:34:14","date_gmt":"2023-03-01T20:34:14","guid":{"rendered":"https:\/\/essential.construction\/news\/could-tech-workers-find-a-home-in-multifamily\/"},"modified":"2023-03-01T12:34:14","modified_gmt":"2023-03-01T20:34:14","slug":"could-tech-workers-find-a-home-in-multifamily","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/could-tech-workers-find-a-home-in-multifamily\/","title":{"rendered":"Could tech workers find a home in multifamily?"},"content":{"rendered":"

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This story is the third in a series looking at the impact of recent tech-focused layoffs on the multifamily sector. <\/span><\/em><\/span><\/span><\/span><\/span>Click here<\/span><\/span><\/span><\/em><\/span><\/span><\/span><\/span><\/a> for the first article and <\/span><\/em><\/span><\/span><\/span><\/span>here<\/span><\/span><\/span><\/em><\/span><\/span><\/span><\/span><\/a> for the second article.<\/span><\/em><\/span><\/span><\/span><\/span><\/p>\n

Right now, it feels like there are two different economies.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Despite the Federal Reserve\u2019s attempt to cool inflation with interest rate increases, the job market remains persistently tight. Case in point: U.S. employers added 517,000 jobs in January, <\/span><\/span><\/span><\/span><\/span><\/span>pushing unemployment to 3.4%<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>, a figure not seen since 1969. But then there is the other side \u2014 <\/span><\/span><\/span><\/span><\/span><\/span>392 tech companies have shed a total of 108,901 jobs<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> in 2023, according to the website Layoffs.fyi.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

For companies struggling to find employees, these layoffs may provide an opportunity to add scarce talent. \u201cWhen companies [have layoffs], a ton of available talent gets released in the pool,\u201d said Austin Lo, CEO of New York City\u2013based virtual tour platform Peek.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Unlike 20 years ago, there may now be a home for some of these workers in the multifamily sector. Over the past decade, especially since COVID-19 hit, the industry has increasingly adopted tech systems, creating the need for tech-savvy talent. Although there may be some obstacles, the apartment industry\u2019s relative stability could be attractive for tech workers.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cMost of the companies that we’re working with are still hiring,\u201d said Rick Goldberg, vice president of sales at Anaheim, California\u2013based smart technology solutions company Arize. \u201cThey might not be expanding in certain parts in their technology departments. But overall, they’re looking to fill some key tech roles.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Tech adoption increases<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n

The last couple of years have been a time of tremendous technology adoption in the apartment industry. At least partially prompted by social distancing during the pandemic, apartment operators have increased their use of tech-based solutions like virtual tours, smart home products and apps that allow renters to do everything from scheduling maintenance to reserving a machine in the gym.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cThe real estate world has always been a little slow to embrace technology, especially on the operational side,\u201d said Mike Madsen, vice president of acquisitions and economics at Salt Lake City, Utah\u2013based RealSource Properties. \u201cBut it’s changing quickly.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Some bigger companies, including the REITs, are moving past traditional vendors and building technology systems in-house, making them potential landing spots for tech workers. For instance, Palo Alto, California\u2013based Essex Property Trust <\/span><\/span><\/span><\/span><\/span><\/span>is rolling out a proprietary revenue management system<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cAs owners and operators are increasingly focused on improving their operational efficiency and resident satisfaction, it’s possible that they may look to hire experienced technology professionals to help them achieve these goals,\u201d said David Bitton, founder and chief marketing officer of Miami-based property management software provider DoorLoop.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Bitton specifically points to tech workers with experience in software development, data analysis and management, and digital marketing as good candidates for building and maintaining systems for apartment industry owners.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cThese workers could bring a wealth of knowledge and experience to apartment owners and operators looking to improve their internal systems, such as property management software, marketing automation tools and data analytics platforms,\u201d Bitton said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Roadblocks to hiring<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n

But even with the industry\u2019s progress on the tech front, more work can be done, creating even more potential opportunities for tech workers. \u201cAt the higher-income technical levels, I think there is endless opportunity for modernizing how the multifamily sector operates,\u201d said Bobby Lee, CEO of Los Angeles-based JRK Holdings.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

But Lee wonders if some apartment owners will make the necessary investment in tech and new talent. \u201cI wonder how committed our industry can be to making sizable cash investments to achieve very long-term gains,\u201d Lee said. \u201cMultifamily is a value-based, cash-flow-focused industry, and tech investments are usually very short-term dilutive.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Strong competition for workers leads to high salaries \u2014 something many multifamily companies may be unable to stomach, especially in a higher interest rate environment.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n