ULI Chicago YL Virtual Roundtable Summaries

 ULI Chicago Young Leader’s continue to host Virtual Roundtables, convening 25 ULI Chicago Under 35 members for thoughtful discussions related to current industry topics and trends. Members Mike Tirman, Attorney, Ice Miller LLP and Jane Acker, Associate, Newcastle Limited share with us take-aways from the May and June conversations.

To Rent or to Buy: The Debate on Home Ownership
Wednesday, June 10, 2020

On Wednesday, June 10^th ULI Chicago Young Leaders discussed three transitional renter demographics that will fill demand for rental housing, namely single-family homes. Beforehand, participants read The New Face of Rental Housing: Single-Family Built-For-Rent to deepen the conversation. So, who are single-family home renters, and what do they want?

1. The millennial person or couple finally having kid(s):This segment would prefer to own but can’t afford it, likely due to student debt. They’ll need 2+ bedrooms and want outdoor play space. Schools and safety will also matter more, so they could be test-driving neighborhoods. They might be more likely than the average renter to renew or sign longer term leases.
2. The single female professional:She is making less than $75K a year, is moving up the ladder, and is willing to pay a slight premium for extra space and privacy. That way she can blast music or sleep during the day on night shifts. She likes the “Subaru of housing”, which is move-in ready without the hassle / burden of owning.
3. The recently retired or empty nester:This group is seeking a lifestyle shift and exploring two options. Option suburb, with less space and a first-floor master bedroom in a familiar neighborhood, is more economical. Option downtown, with urban amenities and walkability, comes at a premium. Both options limit maintenance costs and labor.

Together, these three renter profiles make up a part of the story of a society in transition. Millennials and boomers alike are moving into a new phase of life. Their motivations, preferences, and options will continue to expand and influence what places they choose to call home.

Disclaimer: I’ve focused on demand, though there are many supply-side factors affecting consumer preference to rent or buy.

Summary written by Jane Acker, Associate, Newcastle Limited

How On-Demand Services & Amenities are Changing the Ways We Think about Real Estate
Wednesday, May 13, 2020

On Wednesday, May 13th, ULI Chicago’s Young Leader’s Group held a virtual roundtable discussion via Zoom. More than twenty young leaders participated, and the discussion was based around an article concerning commercial real estate and the humanitarian challenge posed by the COVID-19 crisis. The participants shared an on-demand service that they find useful during this trying time (like Zoom, Instacart, and Grubhub) and the conversation naturally flowed to several pertinent and timely questions.

Some of the questions that arose during the discussion included: how have daily habits changed and what habits will stick after the COVID-19 crisis ends; how do these different habits impact the value of different types of real estate; how has this crisis impacted the qualitative aspects of real estate (like a loss of community); and will this crisis cause or accelerate a change in the current uses of real estate. The young leaders shared their collective personal and professional experiences to dive into these issues and raised interesting insights and additional questions on how real estate has been and will be affected. The conversation concluded with all of the participants sharing their thoughts on how ride-sharing services (like Uber and Lyft) have and will change.

Summary written by Mike Tirman, Attorney, Ice Miller LLP