Data is arguably the most important commodity in today’s world. The sheer amount available at our fingertips is incomprehensible. How it’s used spans far and wide. And what’s more, in the last two decades, there has been a significant rise in data consumption by all industries, including housing. If it wasn’t clear already, the evolution of big data is shaping our world in profound ways. The housing industry is embracing big data to create a more efficient and effective way of doing business.
While data has changed the way we interact with business partners, data sharing platforms have helped us go from understanding relations in large data sets, to anticipating results and influence decisions proactively. With a growing demand for predictive level insights in business, the potential uses cases for leveraging big data tools to aggregate market intelligence remains relatively untapped.
Big demands, incredible potential and great responsibility come with the evolution of big data in housing. Here’s our take: Let’s go together.
Big data. What is it, and how is it revolutionizing the housing market?
This is a big question, and to answer it, we need to consider the evolving world of data. Big data is the umbrella term to describe all the information collected from any source. For example, digital data, health data, government-filed paperwork, and yes, even your DNA and genome. And that’s just the beginning. Big data is human discovery and the evolution of humanity.
You may think of big data as an array of numbers collected over a period of time spread out on an excel sheet, then assigned to that one data person to decipher the meaning, which could take days and even weeks. The reality is data has historically been safe-guarded by traditional data collection methods, which were largely subjective and reactionary. Data visibility has really changed the game, increasing business growth by pushing companies to raise the bar and industry standards.
The goal is to find the competitive edge by pulling together data from various sources. You can do this through platforms that create visual representations highlighting major findings, making you an asset in your industry and giving a boost for business growth! Data sharing has made accessible actionable insights with a single click.
This saves companies time and money by cutting down the need for tedious record-keeping, while also providing employees with more accurate data.
Because of this, the most progressive companies center the experience of the customer which has, in turn, created a customer-driven world — and that’s backed by data.
The mind of the consumer is the holy grail of data mining.
Where would data be without the consumer? It could be argued that the greatest driver for faster, more efficient, and seamless technology is by popular demand of the end user. Customers are demanding better products, higher-touch service, and more personalized products delivered in a single click. How could they not? Businesses have been leveraging data to get one step ahead of the competition for decades now, creating expectations that challenge entire industries to evolve.
At every point in our day, whether or not we’re interacting with technology, we’re consuming information. If businesses can tap into the minds of a consumer, they can create products that not just deliver but anticipate their needs. Talk about the holy grail for an industry that exists to serve the most basic needs of a person: where to lay their head at night.
Think about it. Why were resident apps created? It helped create a streamlined communication between the leasing team and tenants, creating service that was more efficient and certainly more effective. Why are they now the norm? Because potential residents expect it. What more can that app provide that anticipates needs? Package notifications? Uber eats integration? The potential is literally endless, and to not have a resident app is to be behind the curve.
Big data holds the key to unlocking so much potential when it comes to knowing the customer and anticipating their needs.
In other words, the housing revolution was started by the end-user and the need for companies to win them over, and then keep their business. This is how big data has become crucial in every business’s strategy.
Data shows that the attention span of customers has decreased, which means companies have only a few seconds to capture attention. How will you do that unless you know exactly what message to serve up, when to serve it, and which platform to serve it on?
You guessed it. Data tells us all of that. The increasing interest in understanding consumer behavior may be the greatest influence in technology because it places the consumer at the center of interest.
Think about the resident. How intimately do you know your resident? The more we know who may be signing a lease, the better we can cater to their evolving needs, gain trust, and secure their loyalty.
When we look at renewals and referrals, this information is crucial to ensuring we’re creating raving fans. Word of mouth still remains the most powerful testimony for a recommendation.
Tracking the decision-making process of a consumer improves the innovation potential of businesses world-wide. This is especially true for the housing market.
The more attention placed on the customer experience, the more customers expect. See the cycle? It’s a reciprocal relationship — customers driving the technology forward and technology inspiring the demand for progress in the customer experience.
This explains why the amount of data consumed by our society has grown considerably over the last two decades, and it’s being used to solve macro challenges, like housing.
Big Data and Big Decisions
When you have the right questions, data provides profound insight that can influence a multitude of things. From which market to build in and which unit mix to which high-touch finishes to place in the guest bathroom. Let’s take a common scenario into consideration, and let it play out using data collected by Radix platforms.
According to our market data, Phoenix and Las Vegas are the fast-growing markets in the nation with no signs of slowing down in the next couple of years, making them a perfect expansion city for your next project. Should you decide to build in Phoenix, we’re seeing a climbing saturation in class A builds the downtown market and a widening gap in affordable housing.
However, there are still not enough class A delivered to this market to meet the growing demand, which creates opportunity. To corner a market, knowing the target customer is more important than ever. According to our demographic data in this market, two bedroom apartments seem to be preferred, which accounts for majority of units in the market.
The greatest factors in choosing an apartment within these more saturated markets is location, price, and unit amenities. Meaning, location’s a key differential that could set your asset apart from the rest.
When you utilize the Radix platform, any questions you have about your target market are answered through simplified, easy-to-use platforms. It’s that simple. This is the power of shared data.
It’s hard to believe there are still companies sifting through spreadsheets full of data, piecing together numbers to reveal insights that will inform the running of their business. We wrote about the importance of automation to create more efficient property management teams in a previous article. The evolution of big data pushed automation forward with sophisticated data platforms that consolidated large amounts of data into visually accessible, user-friendly platforms.
Big data has streamlined decision-making, creating more efficient products that anticipate the market’s evolving needs through predictive insights.
What does big data influence?
Literally everything. It influences how many emails to send potential residents and what messages will mostly likely increase their likelihood to click. It tells us what information will most likely get a customer to fill out a form, schedule a tour, and better yet, lease an apartment at your property. Micro details about your business can be determined by big data collected by Radix, and companies like us.
The Future of Data, and beyond
Now, data has the power to influence the way we view and relate to the world. To be at the helm, working with data to create strategies that influence entire markets is a profound responsibility. We don’t take that lightly. In fact, it fuels us.
Radix is in the business of creating platforms that offer up data in a way that allows you to shape your business and the industry at large. It’s true, data is what you make it. Make it work for you.
The question remains — is big data telling the story of human discovery or is it painting the picture? We’ve come to a point in time where the answer may be indistinguishable, but the two are shaping each other in remarkable ways.
As we evolve into the next phase of big data and the sharing of information, we have to consider the implications on the housing market.
We at Radix can help with macro comparison and benchmarking of portfolio level reviews, even if that includes hundreds or even thousands of your properties and respective comps. Data is distilled to its most effective level to triger action.
Zooming in all the way to a single property, the Radix platform will enable users to compare single unit type amenities vs. competitive properties in that area.