Dave Marcinkowski is a Founder/Partner in Madera Residential and Quext, focused on creating smarter, healthier apartment communities.
No matter how many marvelous tech gadgets humankind comes up with, shelter will always remain a clear and present need. From before the dawn of civilization, our ancestors sought refuge in and around dwellings and gathering spaces.
The primary focus throughout time has always been to find harmony between the human aspects and the non-human (or even superhuman) forces of nature. As we evolved, our resources have expanded beyond the natural elements to include digital and technological means of support and progress. Yet, our basic need for harmony in our dwellings remains the same.
This instinct is so deep that no matter how sophisticated the technology, I believe the human need for balance will keep the elements in check. For this reason, I see a lot to be excited about in the recent generative AI boom across industries—especially as it relates to multifamily housing and real estate.
How Generative AI Is Transforming The Industry
Although notoriously slow to adopt new technology, property management is getting wise to the necessity to address longstanding problems and improve the housing experience for operators and residents alike. Notions of home and community are expanding as quickly as the devices we use to customize our spaces, and it’s no longer feasible for operators in the field to refuse to incorporate the influx of tech-based resources.
Generative AI (GenAI) is making considerable improvements on the operational side by automating time-consuming elements of property management. Such tasks include organization, identification and updating of documents and information.
Unlike traditional AI systems, which we use primarily to identify data patterns and make predictions, generative AI can go further and create new patterns altogether. This ability has unforeseen potential to transform aspects of the real estate and construction industries, from streamlining workflows to improving strategy to enhancing the resident experience.
Here are a few ways generative AI can enhance the housing industry from a resources and processes perspective.
Reducing Risks
Many people assume generative AI is public and open-source; thus, any information and data within it is available to anyone and everyone. This is inaccurate. Private models exist that can protect sensitive information and minimize risks surrounding real estate transactions. Private generative AI can also identify potential problem spots, such as fraud or technological failures, before they become costly disasters.
I believe that industry experts learning to use these private AI models within their ERP and design systems can be ahead of their competitors. Look to generative AI to provide better security, prevent data breaches and enjoy timely insights regarding everything from resource allocation to structural sustainability.
Improving Strategy
From price modeling to data mining and predicting market trends, generative AI promises to provide invaluable and instant insights into opportunities and negotiations that impact every level of housing development and acquisition.
Streamlining Workflows
You can use generative AI to help forecast how property prices will behave in a particular area over a given timeframe. Instead of manually poring over mountains of research in an office, this tool can automate many of these processes, freeing professionals up to focus on more timely, creative or relational tasks.
Improved Experiences For Residents
Millennials are the largest generation of apartment renters, and they highly value convenience and privacy. Technology-based amenities are a top priority for this collective, with eco-awareness, sustainability and communal experiences among their other top values. You can look to use generative AI to meet these needs through:
• Personalized property recommendations. Generative AI can analyze a customer’s preferences and past interactions to suggest homes or communities that align with their values
• Predictive pricing models. You can also use it to analyze market data to predict housing trends and prices, giving residents more control over when and where they search for their ideal living situation
• Lifestyle options. Smart home systems powered by generative AI can contribute to a sense of customization, community and sustainability. Smart locks, smart thermostats, surveillance sensors and Alexa integration, just to name a few, are all AI-powered tools that enable tenants to manage who has access to their home, the impact of their carbon footprint and to set the tone for a gathering of friends.
• Predictive AI and 24-hour operation. Taking an average in a survey between the U.S. and the U.K., 35% of consumers find it valuable to have a fully self-serve customer care option available to resolve their issues. Chatbots can take care of many predictive scenarios in a resident’s journey, from answering questions about rent to troubleshooting maintenance issues—providing an immediacy of service that human operators can’t.
All these benefits and more can significantly impact the efficiency, expertise and safety with which professionals approach the manifold systems and processes required to get multifamily communities up and running.
Synthesize The Predictable, Humanize The Exceptional
Generative AI presents a broad array of tools and resources that, if used correctly, can and will revolutionize the construction and real estate industries by automating manual processes, enhancing energy efficiency, heightening security and enabling predictive analytics.
However, despite showing tremendous potential, it’s important to remember that generative AI isn’t what “makes a house a home.” The uniquely human aspects of creating habitable and desirable housing continue to be the driving force behind how and why these industries have permanent staying power. The technical elements—including generative AI—exist to augment both human expertise and need.
I like to think of it this way: Synthesize the predictable with generative AI and humanize the exceptional with living, breathing staff who care about creating modern multifamily communities that feel genuinely communal and offer flexible solutions to individual needs. I believe this will ensure the harmony that has inspired and comforted humankind for millennia.
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