The pandemic forced many of us to become more familiar with our homes than ever before. They became our boardrooms, classrooms and fitness studios, shielding us from the ravages of a global crisis. In a sense, they became our safe spaces.
When millions of people sheltered in place at the beginning of the pandemic last year, the housing market took a hit. Now, with the pandemic slowly subsiding, a real estate renaissance is taking place in regions across America.
While the real estate market may be booming, that doesn’t mean home seekers are settling for any kind of housing. With many feeling crowded in their current living spaces, more people are interested in single-family housing.
But there is one major downside to the current real estate frenzy. As housing demand rises, so does the price of single-family homes. According to a recent report from The Wall Street Journal, the median home price in key metro areas rose more than 10 percent over the course of a year.
Surging prices and tight credit markets, coupled with the fact that many people aren’t ready to commit to a long-term contract like a 30-year mortgage, has made the single-family market more crucial than ever.
At Amherst, a company that buys, manages, and renovates real estate through their use of technology, proprietary data, and analytics, the demand for single-family real estate is something they’ve been prepared for. The organization has been focused on adding quality housing to U.S. markets through home renovations. Additionally, the company is building new homes and rental communities that are designed to last for decades and help answer the growing demand for single-family homes.
Housing for the Future
While the company’s solution seeks to address the current housing affordability problem, it’s also advantageous for people who haven’t finalized their long-term goals, according to Amherst Director of Off Market Operations Rocky Faw.
Single-family rentals can also ease some of the struggles people face when searching for a new home. The transition from selling a home to buying a new one can take several months, which is why the company allows people to stay in their current rental for as long as they need before purchasing a home, COO Trevor Schick said.
“There are a million use cases for unlocking people’s equity and allowing them to stay where they’re at,” Faw said. By giving people greater flexibility, the company enables them to save money for other expenses or new-home construction while removing the need to find another temporary housing solution, such as an apartment. “We unlock a lot of opportunities that not many companies offer people in the real estate space right now.”
A LOOK DOWN THE PIPELINE
Amherst is also focused on building homes, updating properties, and purchasing high-quality and eco-friendly appliances.
“COVID-19 shifted a lot of people’s mindsets,” Faw said. “A build-to-rent solution allows people to take that next step without the risk and financial obligation that comes with purchasing from a builder.”
“Our team is focused on choosing great-looking products and finishes that are as durable as they could possibly be, so we’re not going to have to replace them every time a resident moves out,” said Megan Gilmore, procurement supervisor at Amherst. “We want to create really beautiful homes that are super durable, and we can hold onto for 10, 20, or 30 years.”
For Schick, Amherst’s build-to-rent model is what makes this possible. Because it plans to operate these homes for decades to come, Amherst invests in building a high-quality product. That means the company prioritizes implementing higher-quality products in its homes, such as efficient HVAC systems, which equip renters with greater financial stability. Amherst is also exploring a completely new approach to community development and management with amenities and services to improve the lifestyle of its renters.
“We know that spending money upfront rather than later is actually a better investment for us both, and it creates a better customer experience,” Schick said.
Opportunities Abound for Amherst Talent
As a vertically integrated platform, Amherst is truly an all-in-one real estate operation. The company oversees every aspect of the housing lifecycle, from buying, construction, and renovation to marketing and property management.
“Considering Amherst’s multifaceted nature, the organization is the perfect fit for professionals from a wide range of backgrounds,” Schick said. “There are so many distinct teams that employees have the chance to learn new skills and develop a deeper understanding of every side of the business.”
“If you think about the different roles people can go through and get experience in, it’s pretty impactful,” Schick added.
According to Faw, the company’s ability to maintain scale and efficiency is due partly to its diverse range of talent. That’s why the organization makes it a priority to show new hires how their individual strengths can combine with the work of other departments to contribute to the company’s overall impact.
“When someone’s hired for a specific role, we also try to do an education on the other sides of the company,” Faw said. “For instance, if you come in on the buy side, you also need to know the people who help build it, why it’s there, how it got us to where we’re going, where it’s going to help take us, and how your input can help to get us there.”
Amherst also focuses on their employee’s internal career paths, fosters their development, and allows opportunities to pursue a variety of interests and grow into roles across the company, Gilmore added.
Gearing Up for an Innovative Future
As Amherst continues to grow both its headcount and real estate operations, the company is placing greater emphasis on refining the customer experience.
“From a technological standpoint, the company is focused on creating a seamless resident experience, centering around a new self-service portal that allows customers to view work orders and locate their progress,” Schick said. That’s one reason why the company is searching for fresh talent who can help transform the company’s current approach with deep customer experience and marketing backgrounds.
According to Faw, the company is ramping up its consumer group testing initiatives in an effort to gauge real estate sectors with the highest demand and determine what people want the most in the leasing and home-buying process. For him, delivering a positive experience to customers is critical, considering residential moves are often large milestones in people’s lives.
LOOK AHEAD, NOT BEHIND
“Whether it’s a $100,000 or a $2,000,000 house, it’s just as important to the individual, so we want to make sure they get the same attention and care throughout the journey,” Faw said.
Amherst’s growth and the strength of its products are two things that excite Gilmore the most about the company’s future. In her mind, it’s also powerful to know that everyone in the company plays a part in its success.
“Everything we’re doing has such a huge impact on the company, and ultimately the lives of our residents living in our homes too,” Gilmore said.
According to Schick, people with startup mindsets thrive at Amherst, which is why he believes that the biggest goal for the company right now is to find the right people who will further drive innovation.
“The firm is at a point of tremendous growth and opportunity, and people who bring their innovative ideas and can thrive in a collaborative and fast-paced environment will be immensely successful at Amherst and have a greater impact on the real estate industry.” Schick said.
