2023 Trends Report

202 3

Trends Report

W W W. T H E LY S T . C O M

2023 Trends Report Th e cu lt u ra l ze i tg e i s t i s s t i l l re b ou n d i n g f ro m t h e d rast i c exp erien ces en d u re d s i n ce t h e on s e t o f COVI D -19 i n 2020. 2020 wa s po sit io n ed to b e a n ew b e g i n n i n g — a p o si t i ve o ut l o o k o n th e n ew deca d e t h a t wa s u p on u s . O f co urse , i t ’s n ow evi d e nt h ow qu ickly t h a t p os i t i ve e n e rg y t u rn e d i nto so m e t hi n g n o o n e cou ld have ima g i n e d .

As Ca t a lyst ref l e c t s on t h e c u lt u ra l t h e m e s ex p e ri e n ce d f ro m 2020 – 202 3, t h e s t re s s a n d h a rd s h i p occ urre d i n 2020 p o si t i o n e d us to em erge in to 202 1 wi t h c a u t i on a s we ma d e o ur way t hro ug h to recover y. From a c u lt u ra l p e rs p e c t i ve, o n ce 2022 was up o n us, we were feelin g ve r y op t i m i s t i c a n d rea d y fo r n ew b e g i nni n g s, si mila r to h ow we fe lt a t t h e on s e t of 2020. Howeve r, as t h e year went o n, t ha t op t i m i s m s t a r te d to d i m a b i t w i t h vari o us g l o bal i ssu es a n d cu lt u ra l t h e m e s we we re co nf ro nte d w i t h.

2 l 202 3 TRE N D S RE P O RT

Fast- fo r ward to t h e f i rst q uar te r o f 2023 an d yo u’l l f i n d t h e cult ural ze i tg e i st an d t h e marki n g s o f eve r yday l i fe are st i l l i n re b o un d m ode f ro m t h e d rast i c ex p e ri e n ces eve r yo n e un d e r we nt t h e past t hre e years. Th e main t h e m e an d o ut l o o k fo r 2023 i s a re p ri o ri t i z at i o n an d a re o rd e ri n g o f t h e cha o t i c e n e rg y t hat co nt i nue s to carr y ove r f ro m l ast year.

Wi t h t hi s re p ri o ri t i z at i o n an d re o rd e ri n g co m e s t h e n e e d fo r an up l i ft i n g sp i rit: “ Com m u n i ty, creat i vi ty, an d co l o r vi b rant l y pai nt 2023 , as l as t yea r ’s u n b oun d e d o p t i mi sm shi ft s to an exub e rant n e e d fo r u plift a n d p l ay. … p e o p l e are d e te rmi n e d to sh ow re si l i e n ce , i nn ova tion, a n d j oy i n t h e fa ce o f co nt i nue d hard shi p.”

I n t h e worl d o f marke t i n g , t h e Panto n e Co l o r o f t h e Year se ts a p re ce d e n t , a m o o d , a to n e — create s an e n e rg y o f i nsp i rat i on.

For 202 3 , Viva M a g e nt a was se l e c te d as a b o l d , e n e rg e t i c hu e d e s c ri b e d a s “an un co nve nt i o nal sha d e fo r an un co nve nt i o na l t i m e .” Ag a i nst t h e curre nt g l o bal cl i mate o f l o o mi n g re ce ss ions, e nvi ron m e n t al un ce r t ai nty, an d surg i n g i nfl at i o n rate s, Panton e i s of fe ri n g bri g ht n e ss an d h o p e by chann e l i n g i nn e r st re n g th: “ I t ’s b rave , it ’s fearl e ss, i t d e p i c t s o p t i mi sm an d joy,” says Lea trice E i s e m a n , exe cut i ve d i re c to r o f t h e Panto n e Co l o r I nst i t ute . “ It is a col or t h a t i s aud a ci o us, ful l o f w i t an d i n cl usi ve fo r al l .”

I n a d d i t i on , Cat al yst al so wante d to l e n d so m e m o re vi b ran cy to t h e m a rke t i n g pal e tte w i t h o ur ow n 2023 Co l o r o f t h e Season c a l l e d T h e Fut ure I s G re e n — a d e e p g re e n/teal sha d e i nsp i red by n a t u re , g row t h, an d we l l - b e i n g . M uch l i ke t h e exci te m e nt b u i lt by Pa n to n e ea ch year, t h e co l o r g re e n i s ful l o f h o p e an d a n t i c i pa t i on (t hi nk o f p hrase s such as “ t h e g rass i s g re e n e r ” or “g re e n e r past ure s”). Thi s d e e p g re e n sha d e i s i n t h e sam e jewelton e d fa m i ly as Vi va M a g e nt a b ut i s ap p roa chab l e e n o ug h to be wove n i n to real - l i fe spa ce s an d t an g i b l e e l e m e nt s.

T h rou g h ou t t hi s 2023 t re n d re p o r t , yo u w i l l p i ck up o n a te n sion b e twe e n ch a o s an d o rd e r an d hard shi p an d joy. Th e p ush an d p u l l s of t h e se t re n d s se t t h e to n e fo r 2023 an d , h o p e ful l y, by th e e n d of i t , we w i l l co m e o ut o n t h e o t h e r si d e w i t h n ew, i nn ova tive f ra m eworks fo r h ow we se e cult ure an d t h e eve r- evo l vi n g world we l i ve i n .

2023 TRENDS RE PORT l 3

TABLE OF

Contents

T h i s re p or t i s a com p i l at i o n o f t re n d s p ul l e d f ro m a vari e ty o f cre d i b l e , m a rke t- re l a te d s ou rce s. Th e re p o r t b e g i ns w i t h a g e n e ral ove r vi ew o f t re n d s t h a t wi l l b e p e r vasi ve t hro ug h o ut al l i n d ust ri e s i n 2023 , an d t h e n f u r t h e r foc u s e s on t h e i n d ust ri e s o f mult i fami l y real e st ate , se ni o r l i vi n g com m u n i t i e s , s t u d e n t h o usi n g , an d h o sp i t al i ty.

Tren d s l i s t cu ra ted a n d e d ite d by Alliso n Musso lin e an d Dana Sle g e r.

L ayo u t a n d d es i g n by H aley Drinkwate r.

A publ i cat i on of G ood M oo d Me d ia . A ll R igh ts R e s e r ve d . Co py rig h t 2023 .

01

04

DIGITAL

SENIOR LIVING

Web3

08

Unretirement

42

The Metaverse

09

Sector Maturation

43

Artificial Intelligence (AI) and ChatGPT

10

Wellness Value Proposition

44

New-Gen Ownership

12

45

Web3 Literacy + CryptoLiteracy

13

Senior Housing as Part of the Continuum of Care

Web3 Brands

14

Tailwinds for Occupancy Recovery

46

Mapping Reality

15

Staffing Challenges and Expenses, Margins, and Returns

48

Metaverse Education

16

Demographics Favor Senior Housing

49

Metaverse Support

17

Metaverse Pop-up

18

Metaverse Architecture

19

Metaverse for Good

20

02

MARKETING + DESIGN

05

STUDENT HOUSING

Enrollment Woes + Development Slows

52

More College Consolidations on the Horizon

53

24

Community Spaces Are a Must + Catering to Gen Z

54

Creator Marketing + Creator Communities Literally “Literal” Typefaces

25

Privacy Please

55

Collage Core

26

56

Stickermania

27

The Right Product Mix to Aid in Affordability

Groovy Feels

28

Going Green

57

Feel Good Feeds

29

Gender-Neutral Housing

58

03

06

M U LT I F A M I LY

HOSPITALITY

Rental Rates Cool Off for 2023

32

Restaurant Shops

62

Mixed-Use Properties Continue to Grow

33

Membership Dining vs. Clubstaurants

63

Single-Family Rentals Are Still Attractive

34

Meta Travel

64

Increase in Rent-by-Choice Households Causes Blurring of Demos

35

Supercommuters

65

Green Is a Responsibility

66

Once Amenities, Now Table Stakes

36

Holistic Hospitality, Health, and Well-Being

67

Affordable Housing Should be Top of Mind

37

Hyper-Personalization

68

Climate Change’s Growing Impact on Real Estate

38

01

Digital Trends T h e two m a jo r to pics d o m inatin g th e d ig ital tre n d s lan d scap e a re t h e d evel o p m e nts in We b3 an d th e m e tave rse . Th e se two fo u n d a t i o n a l t ren d s will b e d iscusse d b e fo re a d d re ssin g o th e r va ri o u s t ren d s t h a t sup p o r t th e se co n ce p ts.

Web3 “ Web3 is bein g tou te d a s t h e f u t u re

“ Th e i d ea i s t hat t hi s w i l l create a m o re

of t h e intern et . T h e vi s i on for t h i s

d e m o crat i ze d I nte rn e t . No si n g l e e nt i ty will

n ew, blo ckcha i n - ba s e d we b i n cl u d e s

co nt ro l t h e fl ow o f i nfo rmat i o n o r ‘ p ull th e

c r ypto cu rren cie s , N F Ts , DAO s , d e ce n t ral i ze d

p l ug ’ an d ki l l a n e two rk , si mp l y b e cause

f i n a n ce, a n d m ore . … T h e tot a l i ty of t h e se

[t h ey] can as t h ey ow n t h e hard ware i t’s

e f fo r t s is ca lled ‘ We b3 .’ T h e m on i ke r i s

r unni n g o n. Th e se r ve rs, syste ms, an d

a co nvenient sh or t h a n d for t h e p roj e c t

n e two rks w h e re ap p l i cat i o ns are r un f rom

of rew irin g h ow t h e we b works , u s i n g

an d w h e re d at a i s sto re d w i l l , i n t h e o r y,

bl ockcha in to ch a n g e h ow i n form a t i on i s

b e ow n e d by t h e use rs t h e mse l ve s, w h o

sto red, sha red, a n d own e d . I n t h e or y, a

w i l l have vo t i n g ri g ht s ove r w hat r ul e s

bl ockcha in-ba s e d we b cou l d s h a tte r t h e

an d re g ul at i o ns are i n p l a ce , an d h ow

m on o po lies o n wh o con t rol s i n form a t i o n,

t h ey can b e use d . Why i s i t cal l e d we b3?

wh o ma kes m on ey, a n d eve n h ow n e two rks

B e cause i t ’s t h o ug ht t hat i t w i l l b e t h e

an d co rpo ra t io n s work . Ad voc a te s a rg u e

t hi rd majo r evo l ut i o n o f t h e i nte rn e t , after

tha t Web3 w ill c rea te n ew e con om i e s ,

t h e wo rl d w i d e we b (we b1) an d t h e user-

n ew cla sses o f p rod u c t s , a n d n ew s e r vi ce s

g e n e rate d we b (we b2 , o r so ci al m e d i a).”

onl in e; t ha t it wi l l re t u rn d e m oc ra cy to t h e web; a n d t ha t i s g oi n g to d e f i n e t h e n ex t

Th e I m p o r ta n t D iffe re n ce Be twe e n We b3 an d Th e Me ta ve rs e — Fo rb e s

e ra o f t h e intern e t .”

W h at Is Web3? — H ar vard B usi n e ss R ev i ew

“In simple term s , we b3 i s t h e d e ce n t ra l i ze d i ntern et — bu ilt on d i s t ri b u te d te ch n ol og i e s l i ke blo ckcha in a n d d e ce n t ra l i ze d auto n o m o u s o rg a n i z a t i on s (DAO ) ra t h er tha n cent ra lize d on s e r ve rs own e d by i n d iv idu a ls o r corp ora t i on s .”

T h e Impo r tant Di f fe re n ce B e twe e n We b3 an d T h e Metaverse — Forbe s

Ph o to by Ge o rg ia d e Lo tz o n U n s p la s h

8 l 202 3 TRE N D S RE P O RT

P h oto by Kal Vi sual s on U nspl ash

The Metaverse Th e m et averse i s “a s h or t h a n d for vi r t ual

al l have hug e i mp l i cat i o ns fo r t h e way we

wo rlds, w h ere u s e rs c a n i n te ra c t wi t h

w i l l make use o f t h e vi r t ual wo rl d s o f th e

ea ch o t h er a n d e n g a g e wi t h a p p s a n d

m e t ave rse fo r wo rk , p l ay, so ci al i z i n g an d

se r v ices in a fa r m ore i m m e rs i ve way. T h e

l earni n g .”

term ‘ m et avers e’ f i rs t a p p ea re d i n N ea l Steph enso n’s s c i - f i n ove l S n ow C ra s h ,

Th e I m p o r ta n t D iffe re n ce Be twe e n We b3 an d Th e Me ta ve rs e — Fo rb e s

wh ere it descri b e d a vi r t u a l rea l i ty worl d . … To day techn o l og y i s q u i ck l y c a tch i n g up

Th e m e t ave rse co nt i nue s to evo l ve an d

wi t h scien ce f ic t i on . ... More g e n e ra l l y, t h e

create n ew real i t i e s a cro ss al l i n d ust ries.

term is u sed to d ay to re fe r to a ny on l i n e

“As m e t ave rse a c t i vat i o ns co nt i nue to

spa ces t ha t st ri ve to c rea te i m m e rs i ve

a d van ce , t h e way we t hi nk ab o ut e m ergin g

e nv iro nm ent s.” Ma ny t i m e s , t h e m e t averse

te chn o l o g i e s i s b e co mi n g much m o re

an d Web3 a re o f te n con f l a te d wi t h ea ch

nuan ce d an d e n g rai n e d i n t h e eve r yd ay —

oth er ; h owever, t h e two con ce p t s d o c ro ss

shap i n g a n ew real i ty w h e re p hysi cal an d

over in so m e ve r y i m p or t a n t ways . “ T h e

vi r t ual l i vi n g are i n d i st i n g ui shab l e .”

techn o lo gy t ha t ’s u s e d to b u i l d we b3 — wh ich in clu des b l ockch a i n , a n d b l ockch ai nba sed cr y pto cu rre n c i e s l i ke B i tcoi n a n d

Th e Fu tu re 1 0 0 : Tre n d s a n d C h a n g e to Wa tch in 2023 — Wu n d e rm a n Th o m p s o n I n te llig en ce, page 6

Eth ereu m, a n d N F Ts — u n i q u e d i g i t a l ‘ob jec t s’ t ha t a re s tore d on a b l ockch a in —

2023 TRENDS RE PORT l 9

Artificial Intelligence (AI) and ChatGPT IN 2022, OPENAI RELEASED CHATGPT, A TOOL THAT UTILIZES AI TO INTAKE, COMPREHEND, AND PRODUCE WRITTEN CONTENT THAT S O U N D S ­— S O M E T I M E S E E R I L Y S O — L I K E I T ’ S H U M A N .

“In term s o f crea t i vi ty, O p e n A I s ays G PT- 4 i s much b e tte r at b o t h creat i n g an d col la bo ra t in g w i t h u s e rs on c rea t i ve p roje c t s. Examp l e s o f t h e se i n cl ud e musi c , sc reenplays, te ch n i c a l wri t i n g , a n d eve n ‘l earni n g a use r ’s w ri t i n g styl e .’ Th e l o n g e r con text plays in to t h i s a s we l l . G PT- 4 c an n ow p ro ce ss up to 25 ,000 wo rd s o f tex t f rom t h e u ser. You c a n eve n j u s t s e n d G PT- 4 a we b l i nk an d ask i t to i nte ra c t w i t h th e text f ro m t h a t pa g e . O p e n A I s ays t h i s can b e h e l p ful fo r t h e creat i o n o f l o n g form co ntent , a s we l l a s ‘ex te n d e d conve rsat i o ns.’ G PT- 4 can al so n ow re ce i ve i ma ges a s a ba s i s for i n te ra c t i on .”

G PT- 4 : h ow to us e , n ew fe at ure s, avai l abi l i ty, a n d m o re — D ig ita l Tre n d s

“Du rin g t h ese conve rs a t i on s , C h a t G PT is n o t o nl y h e l p i n g custo m e rs, b ut i t i s al so g at h erin g info rm a t i on t h a t c a n b e u s e d fo r l ea d g e n e rat i o n an d l ea d nur t uri n g .

Ma rketers ca n a l s o u s e C h a t G PT to e n g a g e w i t h we b si te vi si to rs an d val uab l e se gm ent a t io n i n form a t i on” How Can M arkete rs U se Ch at G PT ? H e re A re th e To p 1 1 U s e s . — E n tre p re n e u r

10 l 202 3 TRE N D S RE P O RT

“Be fo re relega t i n g you r con te n t s t ra te gy to Chat G PT, i t ’s i mp o r t ant to un d e rst an d th e techn o lo gy a n d i t s i n h e re n t l i m i t a t i o ns. B e cause i t use s a l an g ua g e p ro ce ssi n g m o del, it s o u t p u t i s ba s e d on a p re d i c t i o n o f l an g ua g e . Th e re sult i s a human- l i ke re spo nse, bu t ju s t l i ke fa l l i b l e h u m a n s , t h e b o t can b e w ro n g . Cr uci al l y, t h e m o d e l i s n ot ba sed o n t h e fa c t u a l fou n d a t i on of t h e co nte nt .”

How Bran ds Can U se Ch at G PT A n d O t h e r G en e ra tive A I Fo r Co n te n t Ma rke tin g — Fo rb e s

“Ou r recent L in ke d I n s u r vey fou n d t h a t m o re t han t hre e - q uar te rs o f marke te rs want to u se Cha t G PT to i m p rove t h e i r m a rke t i n g p e r fo rman ce , b ut o nl y 40% are a c t i ve l y doin g so right n ow.”

How can I use C h at G PT for m arke t i n g ? — Sm a r t I n s ig h ts

“M a rketers w h o wa n t to e m p l oy C h a t G PT to g e n e rate co nte nt sh o ul d al so b e aware of p o tent ia l im pa c t s to S EO. G oog l e h a s t ra d i t i o nal l y p e nal i ze d auto - g e n e rate d content , w hich i t d e e m s l ow q u a l i ty i n a cco rd an ce w i t h t h e co mpany ’s spam p o l i cy.

M o reover, it ’s im p or t a n t to con s i d e r t h e co mp e t i t i ve l an d scap e . Chat G PT ’s so ftware com petes w it h G oog l e , s o t h e re’s b roa d sp e cul at i o n t hat G o o g l e w i l l m ove to pe na lize co nten t g e n e ra te d by i t s com pe t i t i o n.”

How Bran ds Can U se Ch at G PT A n d O t h e r G en e ra tive A I Fo r Co n te n t Ma rke tin g — Fo rb e s

“ Th is is a u niqu e m om e n t i n t i m e wh e re we d o have a g e n cy i n h ow i t shap e s soc iety. A n d it g oe s b ot h ways : t h e te chn o l o g y shap e s us an d we shap e i t . Th e re are a l ot o f ha rd prob l e m s to f i g u re ou t . H ow d o yo u g e t t h e m o d e l to d o t h e t hi n g t hat you wa nt it to d o, a n d h ow you m a ke s u re i t ’s al i g n e d w i t h human i nte nt i o n an d ultima tely in se r vi ce of h u m a n i ty ? T h e re are al so a to n o f q ue st i o ns aro un d so ci e t al i mpa c t , a n d t h e re a re a l ot of e t h i c a l a n d p hi l o so p hi cal q ue st i o ns t hat we n e e d to consider. A n d it ’s i m p or t a n t t h a t we b ri n g i n d i ffe re nt vo i ce s, l i ke p hi l o so p h e rs, soc ia l scient ist s , a r t i s t s , a n d p e op l e f ro m t h e humani t i e s.”

T h e C reato r o f C h at G PT T hi nks A I Sh oul d B e R e g u la te d — Tim e

“ W h en it co m e s to f i g u ri n g ou t a cce p t a b l e use s fo r A I —as we l l as h ow to co o rd i nate ove rsight a n d ri s k m i t i g a t i on e f for t s — M urat i sai d t hat sh e ex p e c t s t hat t h e governm ent , re g u l a tors , a n d com pa n i e s such as h e rs w i l l have to wo rk to g e t h e r. ‘ I do n’ t t hink t h a t we c a n or s h ou l d re l y o n t h e p ri vate se c to r al o n e ,’ M urat i sai d . ‘ Th ere is a co m b i n a t i on of e l e m e n t s t h a t co m e i nto p l ay, an d t i g ht co l l ab o rat i o n be tween priva te com pa n i e s , g ove rn m e nt s, an d re g ul ato rs, as we l l as ci vi l so ci e ty.’ ” Mira Murati : Th e wom an be hi n d Ch at G PT on h ow A I is re m a kin g s o c ie ty — Fa s t Co m p a ny

2023 TRENDS RE PORT l 11

New-Gen Ownership A SIGNIFICANT TRANSITION IS HAPPENING WITH WEB3 WHERE USERS CO-AUTHOR AND CO-OWN DATA: “A pa ra digm sh i f t i s u n d e r way. D e ce n t ral i z at i o n i s d e m o crat i z i n g di g it a l pla t fo rm s — op e n i n g t h e d oor to n ew ow n e rshi p m o d e l s tha t w ill revo lu t i on i ze t h e way b ra n d s a n d co nsum e rs i nte ra c t wi t h digit a l good s , s e r vi ce s , a n d con te n t .”

T h e Future 100: Tre n ds an d Ch an g e to Watch in 2023 — Wu n d e rm a n T h o mpso n Intel l ig e n ce , pag e 14

“In t h e co min g d i g i t a l e ra of We b3 , u s e rs w i l l n o t o nl y coaut h o r bu t co - ow n t h e i r d i g i t a l ex p e ri e n ce .”

T h e Future 100: Tre n ds an d Ch an g e to Watch in 2023 — Wu n d e rm a n T h o mpso n Intel l ig e n ce , pag e 13

“ ‘ If yo u t hink a b ou t t ra d i t i on a l s oc i a l m e d i a, t h e re i s o n e com pa ny t ha t con t rol s eve r y t h i n g a n d has al l o f t h e d at a l o cke d away in t h eir own s e r ve rs ,’ Z ave n N a h a pe tyan, co fo un d e r an d CTO o f Nich e, te l l s Wu n d e rm a n T h om p so n I nte l l i g e n ce . ‘ What a d ecent ra lized s oc i a l m e d i a p l a t form do e s i s d i st ri b ute t hat dat a to o t h er p e op l e . I t d e m oc ra t i ze s i t , m eani n g p e o p l e have own ership a n d p or t a b i l i ty ove r t h e i r ow n d at a an d co nte nt .’ ” T h e Future 100: Tre n ds an d Ch an g e to Watch in 2023 — Wu n d e rm a n T h o mpso n Intel l ig e n ce , pag e 13

12 l 202 3 TRE N D S RE P O RT

Web3 Literacy + Cryptoliteracy TECHNOLOGY IS ADVANCING TO REACH YOUNGER GENERATIONS — CHILDREN OF MILLENNIALS — AS A TOOL TO PROMOTE WEB3 LITERACY AND CRYPTOLITERACY: “ B u i l d i n g l i te ra cy i n n ew te chn o l o g i e s i s cr uci al fo r p e o p le of a l l a g e s, b ut par t i cul arl y fo r yo un g e r d e m o g rap hi cs w h o wi l l l i ke l y g row up i n a wo rl d w h e re t h e se te chn o l o g i e s are u b i q u i tou s, i nstea d o f si mp l y i n- d eve l o p m e nt . M i l l e nni al pa re n t s are i nte re ste d i n se tt i n g t h e i r ki d s up fo r t h e i r futu re, a n d te ch l i te ra cy i n d i ffe re nt fo rms i s par t i cul arl y i mp o r t ant to t h e m .”

202 3 Tre n d R e p o r t — Tre n d H u n te r, p a g e 3 1

“As We b3 b e co m e s m o re p reval e nt , so m e b ran d s are fo cusin g on b u i l d in g We b3 l i te ra cy am o n g chi l d re n. Pro g rams an d p rod u c t s i n t hi s spa ce i n cl ud e eve r y t hi n g f ro m m e t ave rse cod i n g p ra c t i ce p l at fo rms, to fami l y- f ri e n d l y NF T p l at fo rm s.”

202 3 Tre n d R e p o r t — Tre n d H u n te r, p a g e 3 1

“ Fi n a n c i al i nst i t ut i o ns an d f i nte ch b ran d s want to d e mystif y t h e m e t a e co n o my. … Th e m e t ave rse an d We b3 are g i vi n g rise to n ew re t ai l ave nue s an d a nasce nt d i g i t al g o o d s e co n o my — a l l of whi ch w i l l i nfo rm sp e n d i n g patte rns an d are l ea din g to t h e c reat i o n o f a n ew cr yp to n o mi c e co syste m. B ut f i rst , e d u c a t i o n n e e d s to t ake p l a ce ; t h e fut ure o f We b3 co mm erce h i n g e s n ot o nl y o n a d o p t i o n b ut al so o n e d ucat i o n — fo r both con s u m e rs an d b ran d s.”

T h e Fut ure 1 0 0 : Tre n d s a n d C h a n g e to Wa tch in 2023 — Wu n d e rm a n T h om pson I n te llig e n ce , p a ge s 1 45 – 1 46

2023 TRENDS RE PORT l 13

Web3 Brands WITH THE GATEWAY OPEN FOR GREATER IMPACT AND REACH OF WEB3, BRANDS ARE ENCOURAGED TO KICK UP DIGITAL STRATEGIES: “ Web3 is in ev it a b l e . To p re pa re for i t s arri val , b ran d s are armi n g th emselves w it h u p d a te d d i g i t a l s t ra te g i e s. … Ni ch e i s a n ew form o f so cia l m e d i a for We b3 t h a t a i m s to d e m o crat i ze d at a an d ex pa n d o p p or t u n i t i e s for g row t h fo r i t s co nsum e rs, use rs, an d bra n ds. Cofou n d e r Z ave n N a h a p e tyan te l l s Wun d e rman Th o mpso n I nte l l i g e n ce t h a t h i s n ew p l at fo rm ‘o p e ns up a l ot o f o ppo r t u n i t i e s t h a t d on’ t ex i s t wi th t ra d i t i o nal , n o ndecent ra lized s oc i a l m e d i a , b e c a u s e — by t h e nat ure o f decent ra liza t io n — i t m a ke s i t rea l l y ea sy to b uy, se l l , an d t ra d e con tent .’ ” T h e Future 100: Tre n ds an d Ch an g e to Watch in 2023 — Wu n d e rm a n T h o mpso n Intel l ig e n ce , pag e s 7 2 – 73

14 l 202 3 TRE N D S RE P O RT

Mapping Reality R ya n Mu l l i ns, CEO an d fo un d e r o f Ag l e t , p o si t i o ns map p i n g “ ‘a s t h e l a te s t p hase o f i nte rn e t evo l ut i o n,’ w hi ch i s m ovi n g d i g ita l e n g a g e m e n t ‘f ro m pa g e s an d scro l l i n g to p l a ce s an d m ove m ent .’

T h e s i g n i f i can ce o f We b3 , t h e n, i s much b i g g e r t han just b l ockch a i n an d cr yp to — i t i s i n creat i n g a ‘spat i al , p l a ce - ba sed i n te rn e t . I t ’s n o t o nl y pa g e s an d p e o p l e b ut real i ty i t se l f t hat is m a d e m a chi n e - rea d ab l e .’ ” T h e Fut ure 10 0 : Tre n d s a n d C h a n g e to Wa tch in 2023 — Wu n d e rm an T h om pson In te llige n ce , p a ge 46

“ W hy t h e focus o n map s? ‘ Th e real revo l ut i o n i sn’ t si mp l y m a p p i n g b u t a n ew o p p o r t uni ty fo r UI an d h ow we w i l l i nterfa ce wi t h t h e i n te rn e t ,’ M ul l i ns ex p l ai ns. ‘M ap p i n g s an d co mp uter vi s i on a re t h e st ar t o f a n ew spat i al i nte rn e t w h e re real i ty i s a f i rs t- p e rs on ex p e ri e n ce o f m ove m e nt an d par t i ci pat i o n i n a worl d .’ ” T h e Fut ure 10 0 : Tre n d s a n d C h a n g e to Wa tch in 2023 — Wu n d e rm an T h om pson In te llige n ce , p a ge 46

2023 TRENDS RE PORT l 15

Metaverse Education THE METAVERSE MAY SERVE AS A BET TER TEACHER THAN ONLINE LEARNING: “ Vi r t u a l lea rnin g h a s b e com e p op u l a r i n t h e l ast seve ral years n o t onl y beca u se o f t h e pa n d e m i c , b u t b e c ause o f i t s ab i l i ty to make e du ca t io n m o re a cce s s i b l e d e s p i te g e o g rap hi c o r co st- re l ate d barriers. … As t h e m e t ave rs e ex pa n d s , bran d s an d i nst i t ut i o ns are c rea t in g spa ces i n t h e m e t ave rs e t h a t a re d e si g n e d to e d ucate c us to m ers. Eve r y t h i n g f rom s p e c i a l i ze d e d ucat i o n to e d ucat i o nal progra m s a n d g a m e s c a n n ow b e ob s e r ve d i n t hi s vi r t ual spa ce .”

2023 Tren d Repo r t — Tre n d H unte r, pag e 35

16 l 202 3 TRE N D S RE P O RT

Metaverse Support THE METAVERSE ENABLES USERS TO HAVE A MORE IMMERSIVE CUSTOMER SERVICE EXPERIENCE: “ T h e m e tave rse’s use s are g o i n g b eyo n d g ami n g an d ar t / d e s i g n - base d ex p e ri e n ce s an d i nto fun c t i o nal p ro ce sse s t h a t c a n b e n e f i t t h e vari o us n e e d s o f b o t h b usi n e sse s an d c u s tom e rs. … As t h e m e t ave rse ex pan d s, custo m e r se r vi ce i n t h e m e t ave rse i s b e co mi n g a re co g ni ze d i nn ovat i o n t h a t c a n c rea te m o re val uab l e sup p o r t ex p e ri e n ce s. … b usi n e ss es a re u s i n g i t to create custo m e r ex p e ri e n ce s t hat p ri o ri t i ze c u s tom e rs’ g row i n g d e si re fo r m o re e ffe c t i ve an d i mm e rsive e n g a g e m e nt w i t h b ran d s.”

2023 Trend Report — Trend Hunter, page 50

2023 TRENDS RE PORT l 17

Metaverse Pop-up SPECIAL INTEREST APPEAL BASED ON INNOVATIVE WAYS TO ENGAGE CONSUMERS WILL BE A CAPTIVATING MARKETING TREND: “R et a ilers a re c rea t i n g u n i q u e ‘ p op - u p s’ w i t hi n t h e m e t ave rse , or in brick a n d m or t a r s pa ce s t h a t h ave a d o p te d e l e m e nt s o f th e m et averse i n t h e i r l ayou t s a n d d e s i g ns. Th e se ex p e ri e n ce s of fer a u niqu e s p i n on a p op u l a r m a rke t i n g te chni q ue . ...

Bra n ds t ha t a re a b l e to m e rg e t h e conve ni e n ce o f o nl i n e sh o ppin g w it h t h e i m m e rs i on of i n - s tore ex p e ri e n ce s w i l l b e o f specia l interest to con s u m e rs wh o h ave g row n a ccusto m e d to di g it a l- o nly bra n d ex p e ri e n ce s .”

2023 Tren d Repo r t — Tre n d H un te r, pag e 5 8

18 l 202 3 TRE N D S RE P O RT

Metaverse Architecture FROM A DESIRE FOR THE FANTASTICAL TO PUSHING THE LIMITS BEYOND TRADITIONAL DESIGN, THE METAVERSE TAKES ON AN ARCHITECTURAL ROLE: “ T h e m e t averse i s a spa ce w h e re t h e i ma g i nat i o n can r un wild a n d con coc t st r uc t ure s t hat are o t h e r w i se i mp o ssi b l e i n t h e p hys i c a l worl d . Co nsum e rs are t urni n g to t h e d i g i t al spa ce for con te n t t hat ful f i l l s t h e i r d e si re fo r t h e fant ast i cal . Di g i t al i n f ra s t r u c t u re i s, t h e re fo re , b e i n g b ui lt usi n g cutt i n g - e d g e te ch n ol og y to p rovi d e vi sual st i mul at i o n an d ap p ease t h e con s u m e r ’s n e e d fo r e scap i sm.”

202 3 Tre n d Re p o r t — Tre n d H u n te r, p a ge 20 0

“ T h e m e t averse we l co m e s m o re d eve l o p m e nt s as archi te c t u ra l s t u d i os b e g i n co nst r uc t i n g b ui l d i n g s an d o t h e r i nf rast r uc t u re to m i m i c t h e physi cal wo rl d . Th e se st r uc t ure s are ab l e to p ush th e l i m i t s of t ra d i t i o nal archi te c t ure w i t h p hysi cs- b e n d i n g d e si gns.”

202 3 Tre n d Re p o r t — Tre n d H u n te r, p a ge 20 0

2023 TRENDS RE PORT l 19

20 l 202 3 TRE N D S RE P O RT

Metaverse for Good THE METAVERSE INTRODUCES A NEW ETHICAL WAY TO GENERATE AWARENESS ABOUT SOCIAL ISSUES AND HUMANITARIAN EFFORTS: “ Th e m et averse h a s a l l owe d u s e rs to

“Di g i t al b ran d o ffe ri n g s are rea chi n g

e n ga ge in n ew m e t h od s of com m u n i c at i o n

b eyo n d e nte r t ai nm e nt to b e n e f i t t h e

tha t h o n e in o n te ch n ol og i c a l

p hysi cal wo rl d . … Co mpani e s t aki n g

a dva n cem ent s. I n a b i d to rea ch vi r t u a l

a d vant a g e o f fl ex i b i l i ty, sp e e d , an d

aud ien ces, hu m a n i t a ri a n a n d p h i l a n t h ro p i c

i nte rnat i o nal yi e l d i n t h e m e t ave rse ca n

org a niza t io ns a re com m u n i c a t i n g

ai d an d sup p o r t so ci al cause s w i t h ease —

th eir ef fo r t s u s i n g t h e n ewl y ava i l a b l e

harn e ssi n g t h e p owe r to t urn t h e m e taverse

techn o lo gy. T hi s b ri n g s rea l -worl d i s s u es

i nto a fo rce fo r so ci al g o o d .

to t h e pla t fo rm’s fore f ron t , m a ki n g i t a ccessible to m e t ave rs e u s e rs wh o subscribe to soc i a l a c t i vi s m .”

Th e Fu tu re 1 0 0 : Tre n d s a n d C h a n g e to Wa tch in 2023 — Wu n d e rm a n Th o m p s o n I n te llig en ce, page 36

2023 Tren d Repor t — Tre n d H unte r, pag e 141

2023 TRENDS RE PORT l 21

02

Marketing and Design Trends

Creator Marketing + Creator Communities PL ATFORMS IN THE CONTENT- CREATION SPACE ARE PRIMED FOR CREATIVES T O S U C C E S S F U L LY C O N N E C T W I T H C O N S U M E R S I N T H E N E X T D I G I TA L E R A : Ti kTo k’s impa c t ove r t h e l a s t few yea rs i n

Creato rs an d d eve l o p e rs are b e co mi n g

eve r y t hin g f ro m p op - c u lt u re to b u s i n e s s

t h e ba ck b o n e fo r t h e m e t ave rse : “As

i s va st , a n d co n s u m e rs wh o c rea te con te nt

d i g i t al e n g a g e m e nt m ove s f ro m passive

on t his pla t fo rm a re i n evi t a b l y l ooki n g to

co nsump t i o n to a c t i ve creat i o n … t h e role of

g row t h eir a u d i e n ce s , b ra n d s , a n d t h e i r

b ran d s i s evo l vi n g . Creat i vi ty i s b e co min g

abi lity to receive m on ey for t h e i r work . B y

t h e n ew st at us symb o l fo r t h e n ex t d i gita l

suppo r t in g crea tors i n t h i s p roce s s , Ti kTo k

e ra — an d b ran d s are t ransfo rmi n g t h eir

i s a ble to ensu re t h a t t h os e c rea tors a n d

o ffe ri n g s to co nn e c t co nsum e rs an d

th eir fo llow in gs re m a i n on t h e p l a t form.”

creat i ve s.”

2023 Tren d Repo r t — Tre n d H unte r, pag e 4 8

Th e Fu tu re 1 0 0 : Tre n d s a n d C h a n g e to Wa tch in 2023 — Wu n d e rm a n Th o m p s o n I n te llig en ce, page 9

“As co ntent- crea t i on con t i n u e s to s e e boost s in po pu l a ri ty, p l a t form s i n t h i s spa ce a re in crea s i n g l y of fe ri n g p rog ra m s, e du ca t io n, a n d op p or t u n i t i e s for c rea tors to lea rn h ow to b e s t m a rke t t h e m s e l ve s.

Ti kTo k is espec i a l l y foc u s e d on s u p p or t i n g c rea to rs in t his way.”

2023 Tren d Repo r t — Tre n d H unte r, pag e 4 8

24 l 202 3 TRE N D S RE P O RT

P h oto by Brett Jordan on U nspl ash

Literally “Literal” Typefaces (Design) TYPEFACES ARE EMBRACING A NEW LOOK TO CAPTURE BRANDS’ INDIVIDUALITY MORE: “Pro priet a r y typ e fa ce s h ave b e e n a l l t h e

p owe re d sh e l f p re se n ce . Aug e’s re d e sign

ra ge fo r yea rs. S o l on g a s t h ey ex i s t a s

fo r Le i b ni z- Ke k t ake s t h e ro un d e d e d ges

an o t h er lin e for a n a g e n cy ’s i nvoi ce to a

o f t h e b i scui t s t h e mse l ve s, ap p l yi n g t h em

cl i ent , t h ey ’ re l i ke l y n ot g oi n g a nywh e re

to t h e custo mi ze d l o g o an d typ e use d

any t im e so o n, eve n i f t h ey l ook l i ke

t hro ug h o ut t h e p ro je c t . Casey Roar ty ’s

He lvet ica kn o ckof f s s t ra i g h t ou t of Ca n al

d e si g n fo r chi l i o i l G ul p t ake s t h e o i l y drips

Street .

f ro m t h e l o g o an d wo rks i t i nto o t h e r pa r ts

“R ecent ly, so m e a g e n c i e s h ave t a ke n di re c t i ns pira t io n f ro m t h e b ra n d s t h e m s e l ve s, i n co rpo ra t in g s om e of t h e i r n ot a b l e att ribu tes a n d ch a ra c te ri s t i c s i n to b e s po ke

o f t h e b ran d i n g sui te an d typ o g rap hy, while Co l l e c te d Wo rks’ Sl ug Cl ub use s sea slu gs to fo rm t h e l e tte r shap e s fo r a funky, fu n ko mb ucha.

typ efa ces. S u re , i t ’s n ot u n com m on to s e e

“Q ui rky, i ma g i nat i ve l e tte r fo rms are all

som e t h ema t ic d e t a i l s worke d i n to a l o g o,

t h e ra g e , b o l d l y- shap e d fo rmat i o ns t h a t

bu t so m e bra n d s a re wi l l i n g to t a ke i t

b reak f ro m t h e st ran g l e h o l d o f He l ve tica

fur t h er.

an d Fut ura. Lo o k fo r m o re t h e mat i cal ly

“ Th ere’s n o bette r exa m p l e t h a n JK R ’s ref resh fo r Kraf t Ma c & C h e e s e . D u b b e d Bl u e B ox S a ns, t h e s h a p e of Kra f t ’s n ood l e s ma kes it s way i n to t h e typ e fa ce a n d h as an over- t h e - to p — b u t a d ora b l e — m a c a roni -

o n- p o i nt typ e fa ce s t hat ex p re ss a b ran d’s i n d i vi d ual i ty an d a d d a l i tt l e m o re p i z za zz i n t h e p ro ce ss.”

U n b ox in g To m o rrow : D ie lin e’s 2023 Tre n d Rep or t — Th e D ie lin e

2023 TRENDS RE PORT l 25

Collage Core BRANDS ARE TURNING AWAY FROM BL AND DESIGN AND STEPPING INTO A NEW CREATIVE ZONE THAT FUSES INNOVATION AND FANTASY: “Bra n ds a re crea t i n g s u rrea l d e s i g n s a n d t urni n g t h e i r pa cka g i n g i nto a v ibra nt c a nva s wi t h col l a g e te ch n i q ue s. … M a d Le m o n’s ki tch en sink a e s t h e t i c ra d i a te s wi t h p sych e d e l i c- t i n g e d i ma g e s for t h eir lem o n a d e - ba s e d cock t a i l s , wh i l e M a g i a Ne g ra b ri n g s a s o o t hin g et h e rea l vi b e to t h e i r cof fe e l i q uo r b o tt l e . Ki l i n g a’s ba c a n o ra pa cka g i n g f rom Col a n g e l o a n d A l g o ri t m o De si g n spices t hin gs u p wi t h a l a b e l fea t u ri n g a co l l a g e o f d e se r t fl o ra i nter weaved w i t h p or t i on s of t h e fe m a le fo rm. Th e p unk ro cki ns pired Ta nk G a ra g e Wi n e r y h a s b e e n d o i n g t hi s fo r years b ut m ost recent ly c rea te d a mys t i c a l i m a g e o f a wo man weari n g a h elm et m a de of c r ys t a l s for t h e i r c r ys t a l - fe rm e nte d w i n e .

“Li q u o r bra n ds h ave b e e n d oi n g t h i s for a g e s, b ut i t ’s i nte re st i n g to see h ow o t h e r b ra n d s ou t s i d e of t h a t cate g o r y ex p e ri m e nt wi t h t h e techni q u e /a e s t h e t i c . D ay Job ma d e t h e ‘chue g ye st shi t ’ you ’ ve ever see n for s u s t a i n a b l e b ott l e d wate r b ran d G e n Z Wate r by u t ilizin g 90 s - s tyl e d com p u te r g ra p hi cs feat uri n g seal s p uki n g wa terfa lls a n d ora n g u t a n s re s t i n g on b o o m b oxe s. To i l e t Pap e r Ma ga zin e a lso re l ea s e d a b ea u ty a n d cleani n g l i n e w i t h surreal i st g ra phics a n d a b i z a rre P OV — re t ro i m a g e s o f spa g h e tt i o n d i sh soa p? Let ’s do i t .

“Bo tto m lin e — i t ’s O K for b ra n d s to g e t a l i tt l e we i rd ! A fte r years of p rim ped a n d p re e n e d vi s u a l i d e n t i t i es an d b l an d i n g , b ran d s are st ill gett in g ou t of t h e i r com for t zo n e an d g i vi n g co nsum e rs som et hin g ex t ra .”

Unboxi n g To m o rrow : Di e l i n e’s 202 3 Tre n d R e p o r t — Th e D ie lin e

Ph o tos by Ch arl ota B l un arova a n d Ma rc N ew b e rr y o n U n s p la s h

26 l 202 3 TRE N D S RE P O RT

Stickermania USING VISUAL IMAGERY IN THE FORM OF EMOJIS, MEMOJIS, GIFS, AND MORE IS INCREASING AS A CONTINUED WAY TO CONVEY EMOTIONS AND COMMUNICATION: “A n e m oj i i s wo r t h a t h o usan d wo rd s. Case i n p o i nt : yo u c a n tex t you r b e st f ri e n d a st ri n g o f smi l eys, an d t h ey ’l l un d e rsta n d exa c t l y what yo u m ean, n o wo rd s n e e d e d . Sure , so m e may cl a i m p e o p l e s’ atte nt i o n spans have shr unk , b ut p e rhap s we’re j u s t usi n g m o d e rn- d ay hi e ro g l yp hs. Ei t h e r way, st i ckers com m u ni cate so m e t hi n g q ui ck l y i n a way t hat al l t h o se wordy word s c a nn o t . “ B ra n d s are l eani n g m o re an d m o re i nto t h e q ui rky, p l ayfu l a p p ea ra n ce t hat st i cke rs can g i ve — a mi shmash o f t h o ughts a n d i d ea s t hat ’s re mi ni sce nt o f L i sa Frank ’s z any i l l ust rat ions or m i d d l e sch o o l mat h cl ass w h e re yo u’d d e co rate yo ur favorite n ote b ook w i t h d o o d l e s an d a c t ual st i cke rs. “ G l on u t s an d He nr y M ante cas use st i cke rs to b ri n g t h e con s u m e r ’s atte nt i o n to val uab l e p ro d uc t i nfo rmat i o n, l i ke th e f l avor, c a rb co nte nt , o r t h e typ e o f i n g re d i e nt s. I n t h e case of C re m a Col a d a, t h e g rap hi c st i cke rs l o o k just l i ke o n e s yo u’d f i n d on f r ui t i n t h e p ro d uce se c t i o n — an a d o rab l e ap p roa ch for a d ri n k w i t h p i n eap p l e an d co co nut fl avo rs. G o o d Po p a n d t h e Fi s hw i fe an d F l y by J i n g co l l ab use a co mb o o f st i cke r-like g ra p h i c s t hat re fl e c t t h e p ro d uc t i t se l f, b ut t h ey al so a d d a s e n s e of joy an d p l ayful n e ss. St i cke rs can al so g e t i n co rp ora ted a s pa r t of se co n d ar y b ran d i n g o r asse t s, l i ke w i t h t h e h eatin g s l e eve of Ho t Po cke t s o r sna ck b ran d To o d al o o. “ T h a n ks to e m o ji s, m e m o ji s, G I Fs, an d p h o to an d vi d e o socia l m e d i a a p p s, vi sual i ma g e r y has b e co m e a co mm o n way to com m u ni cate w i t h o t h e rs. At f i rst g l an ce , i t mi g ht ap p ear ch a ot i c , but t h e d e si g ns harn e ss an a d d i c t i ve , yo ut hful e n ergy wi t h a m e t h o d to i t s ma d n e ss.”

U n box i n g To m o rrow : D ie lin e’s 2023 Tre n d R e p o r t — Th e D ie lin e

2023 TRENDS RE PORT l 27

Groovy Feels DESIGN IS LEANING IN AGAIN TOWARD ART NOUVEAU FOR ALL THE PSYCHEDELIA FEELS FROM THE ’60S AND ’ 70S: “ Wh et h er yo u l i ve d t h rou g h t h e Ag e of Aq uari us o r just real l y, real l y w i sh yo u d i d , pa cka gin g desi g n i n s p i re d by p sych e d e l i a i s g i vi n g us a t ri p t hro ug h t h e 60s an d 70s.

P sych edelic a r t f l ou ri s h e d d u ri n g t h i s a g e … Thi s i nst ant l y re co g ni z ab l e a e st h e t i c — ban d pos ters w it h bu b b l y, a l m os t a m orp h ou s l e tte rs, d reamy d e p i c t i o ns o f ani mal s l i ke p ea cocks, an d hu ma ns wi t h l u s c i ou s , f l owi n g h a i r — p ul l e d a l o t o f i nfl ue n ce f ro m Ar t No uveau. This ‘ n ew a r t ’ ca m e a b ou t d u ri n g t h e l a te 1 800s an d earl y 1900s, a t i m e o f te chn o l o g i cal chan ge, so a r t ist s wa nte d to h i g h l i g h t t h e b ea u ty an d v ibra n cy o f l i fe i n re s p on s e . T h e i r wo rk i n co rpo ra ted p l a n t s a n d f l owe rs , a b s t ra c t l i n e s an d sha pes, ele g a n t f i g u re s l i vi n g t h e i r b e st l i fe , an d ju icy co lo r pa l e tte s . “ Today, we’ re g oi n g t h rou g h u n b ri d l e d chan g e , just like so ciety wa s ba ck i n t h e P sych ed e l i c 60s.

Between po lit ic a l s t ri fe , ra c i s m , a n d wa r, t h e se far- o u t designs re m i n d u s of t h e b ea u ty i n l i fe .

We’ re seein g a re s u rg e n ce of t h i s d e s i g n w i t h h ea ps o f t rippy typ og ra p hy, i n cl u d i n g Cro o ke d Cof fee a n d A live . O t h e r b ra n d s l i ke Ma d Le m o n an d w in e f ro m Pe d ro Xi m e n ez g i ve u s di vi n e vi su a ls w it h pu n chy col or pa l e tte s .

“As we lo o k a h ea d , we c a n f i rs t t a ke a g an d e r ba ck to see t ha t A r t N ou vea u wa s fol l owe d by A r t Deco. Perha ps we’l l s oon e n te r a n e ra o f m o re an g les a n d sy m m e t r y— b u t for n ow, we real l y d i g th e gro ovy v ibe s of t h i s t re n d .”

Unboxi n g To m o rrow : Di e l i n e’s 202 3 Tre n d R ep o r t — Th e D iel i n e Ph o to by A n d i Bo c s a rd i o n U n s p la sh

28 l 202 3 TRE N D S RE P O RT

P h oto by Matth ew H am i lton on U n spl ash

Feel-Good Feeds IF A DIGITAL SOURCE OFFERS POSITIVITY AND SUPPORT, CONSUMERS WILL GRAVITATE IN THAT DIRECTION: “Consu m ers a re l ooki n g for p os i t i ve m o d e s o f e n g a g e m e nt an d e m o t i o nal suppo r t o nlin e . E m e rg i n g s oc i a l m e d i a p l at fo rms are t ap p i n g i nto use r d e si re s for cha n ge, reform u l a t i n g fe e d s a rou n d p o si t i vi ty an d up l i ft .” Chri sto p h e r Gu lczy nski, co - fou n d e r a n d C EO of t h e Ni ch e ap p, st ate s: “ We se e so ci al m e d i a g ett in g sm a lle r, m ore i n t i m a te . Pe op l e are m ovi n g toward s t h e se n e two rks w i t h l i ke -m in ded sh a re d i n te re s t s , ba ckg rou n d s, o r i d e nt i ty.”

T h e Future 10 0: Tre n ds an d Ch an g e to Watch in 2023 — Wu n d e rm a n Th o m p s o n I ntel l i gen ce, page s 3 9

2023 TRENDS RE PORT l 29

ACCORDING TO THE PWC AND URBAN LAND INSTITUTE’S 2023 EMERGING TRENDS IN REAL ESTATE® REPORT, T H E M U LT I F A M I LY H O U S I N G I N D U S T R Y I S E X P E R I E N C I N G TRANSFORMATION: “ Th e ea rly 2020s h ave b e e n a t ra n s form at i ve t i m e fo r t h e h ou sin g in du st r y a s t h e pa n d e m i c c a u se d p e o p l e aro un d t h e wo rld to reeva lu a te b ot h wh e re t h ey l i ve an d h ow t h ey l i ve . Th e United S t a tes ex p e ri e n ce d ‘ t h e G rea t A m e ri can M ove’ i n w hi ch h ou seh o lds a n d b u s i n e s s e s re l oc a te d to m o re affo rd ab l e p l a ce s, of ten to bu y o r re n t a h om e wi t h a d d i t i o nal spa ce an d a yard , an d far t h er f ro m em p l oym e n t ce n te rs . B u i l d e rs a cro ss t h e co unt r y cou ld n o t keep u p wi t h t h e n ew d e m a n d — an d sup p l y chai n i nterru pt io ns, l a b or s h or t a g e s , a n d p e rm i tt i n g d e l ays d uri n g t h e COVI D -19 pa n d e m i c d i d n ot h e l p m a tters. As a re sult , h o m e p ri ce s e sca la ted a t hi s tori c ra te s ; t h e m e d i a n n ew h o m e p ri ce i n t h e United S t a tes in c rea s e d 2 2 p e rce n t s i n ce t h e st ar t o f 2020 an d exi st in g h o m e p ri ce s i n c rea s e d 5 8 p e rce nt . “ Today … inf la t i on a n d t h e ra p i d e s c a l a t i o n o f m o r tg a g e rate s have resu lted i n a cool d own of t h e for- sal e h o usi n g marke t . Eve r y h ou sin g m et ric i s i n d i c a t i n g a s of te n i n g , an d b ui l d e rs are st ar t i n g to reca libra te t h e i r b u s i n e s s p l a n s i n t h e fa ce o f sl ow i n g d e man d .

As t h e h o u sin g m a rke t re s e t s , we s h ou l d st ar t to w i t n e ss t h e t r ue i mpa c t o f t h e pa n d e m i c on h om e d e s i gn, l o cat i o n p re fe re n ce s, am enit ies, a n d f i n a n c i a l p re fe re n ce s .

2023 Em ergi n g Tre n ds i n R e al Estate ® R e po r t — PWC a n d U rb a n La n d I nsti tute, pages 47 – 4 8

03

Multifamily Residential Trends

Rental Rates Cool Off for 2023 AS THE REAL ESTATE MARKET IS NORMALIZING AFTER THE PAST TWO YEARS , IT ’ S NOT JUST HOME SALES THAT ARE SLOWING: “ Vi r t u a lly a ll a s p e c t s of t h e h ou s i n g m a rke t — b o t h fo rsale a n d rent a l — h ave b e e n d e ce l e ra t i n g . … apar t m e nt rent s have co nt i n u e d to p u s h eve r h i g h e r, b ut t h e pa ce has been m o dera t in g i n re ce n t m on t h s . … A n d w hi l e mult i fami l y va c a n cies a re a t t h e i r l owe s t l eve l i n fou r d e ca d e s an d re nt s con t inu e to lo g n ew re cord s eve r y m on t h, t h e rate s o f i n crease have been slowi n g a n d a re ex p e c te d to d e ce l e rate fur t h e r, a cco rdin g to m a ny ex p e r t s i n te r vi ewe d . ‘M ayb e yo u d o n’ t se e th e 10 percent – p l u s re n t g row t h i n m u lt i fami l y marke t s,’ says th e h ea d o f o n e i n s t i t u t i on a l i nve s t m e n t a d vi so r y f i rm. ‘ Th ey sh o u ld co m e ba ck to m ore of a l on g - te rm hi sto ri cal ave ra g e of 3 percent to 4 p e rce n t , a n d m ayb e offse t so m e o f t h e una f fo rda bility i n t h e cou n t r y.’ ” 2023 Em ergi n g Tre n ds i n R e al Estate ® R e po r t — PWC a n d U rb a n La n d I nsti tute, page 6

A b ig fa c to r t ha t wi l l d e te rm i n e wh e re re nt s g o i n ea ch marke t i s i nvento r y leve l s ve rs u s d e m a n d . N a t i o nw i d e , mult i fami l y con st ru c t io n is a t a 5 0 -yea r h i g h , a ccord i n g to Re d f i n’s foreca st , “ w hich m ea n s h u n d re d s of t h ousan d s o f n ew re nt al unit s w ill be ava i l a b l e n ex t yea r.”

Housi n g Market Pre di c t i on s 202 3 : A Post- Pa n d e m ic S a le s S lu m p Will P ush Pri ces Down For T h e Fi rst Ti m e In A Deca d e — R e df in

32 l 202 3 TRE N D S RE P O RT

Mixed-Use Properties Continue to Grow MIXED -USE DEVELOPMENT IS EXPANDING WITH A FLEXIBLE APPROACH TO LIVE/ WORK/PL AY PROJECTS: “ R ea l e s t a te co nt i nue s to evo l ve to b e m o re fl ex i b l e an d se r vice ori e n te d , a n d t h e t re n d s toward d eve l o p i n g mi xe d - use p ro per ties, re p u rp os i n g asse t s, an d re p o si t i o ni n g p o r t fo l i o s are n o t g o in g away. … t h e t re n d o f mi xe d - use re d eve l o p m e nt an d d e nsi f i ca tion p l ayi n g ou t i n t h e mal l are na i s l i ke l y to ex pan d to o t h e r p roper ty typ e s . S a i d o n e a cq ui si t i o ns d i re c to r, ‘ We are a c t i ve l y l o o ki n g for cl a s s B pro p e r t i e s i n cl ass A l o cat i o ns w h e re t h e re i s an op p or t u n i ty to re p urp o se l i fe styl e , p owe r, eve n g ro ce r y- an ch ored ce n te rs to m i xe d - use l i ve /wo rk /p l ay p ro je c t s.’ ” 202 3 Em e rg i n g Tre n d s in R e a l Es ta te ® R e p o r t — PWC a n d U rb a n La n d Inst i t ute , pag e s 6 8 a n d 1 0 4

2023 TRENDS RE PORT l 33

Single-Family Rentals Are Still Attractive DEMOGRAPHICS MAY BE CHANGING OF WHEN VARIOUS GENERATIONS START F A M I L I E S , B U T T H E D E M A N D F O R F A M I LY- F R I E N D LY H O U S I N G W I L L I N C R E A S E : “ Wh erea s prio r g e n e ra t i on s h a d ch i l d re n

A lt h o ug h t h e “ nasce nt st a g e o f t h e i n du str y

wh ile t h ey were i n t h e i r m i d -20 s , m a ny

make s t h e fut ure hard to d e te rmi n e ,” h ere

mi llennia ls have d e fe rre d ch i l d b i r t h to

are a few t hi n g s to co nsi d e r re g ard i n g

th eir 30 s, a n d s om e s t u d i e s s u g g e s t t h at

si n g l e - fami l y h o m e t re n d s:

th ey a re go in g to s t a r t fa m i l i e s i n l a rg er nu mbers over t h e n ex t s eve ra l yea rs . Wi t h a

•

co mmuni t i e s are p l anni n g a b ui l d -for-

n ew bo rn o r a tod d l e r, t h e s e you n g fa mi l i e s

re nt se c t i o n.

wo u ld ty pica lly p re fe r a h ou s e wi t h a ya rd , an d m o re spa ce i n g e n e ra l t h a n t h ey m i g ht

“Nearl y hal f o f al l maste r- p l ann e d

•

“ Thi r ty- f i ve p e rce nt o f si n g l e - fami ly

have in a n a pa r t m e n t . T h a t i s t h e key to

re nte rs w i t h b ud g e t s o f $1,000 - p l us per

th e grow t h in d e m a n d t h a t we ex p e c t fo r

m o nt h re nt by ch o i ce .

bu ilt-fo r-rent s i n g l e - fa m i l y h om e s . T h e dem o gra phics s h ow t h a t a s t h e ‘b u l g e’

•

“ Si n g l e - fami l y re nte rs w i t h re nt b u dgets

of m illennia ls m ove s u p i n a g e ove r t h e

o f $1,000 - p l us p e r m o nt h p re fe r to

n ex t fo u r to f ive yea rs , d e m a n d for fa mi l y-

re nt fo r m o re fl ex i b i l i ty, as we l l as for

f ri e n dly h o u sin g wi l l i n c rea s e .”

l e ss mai nte nan ce an d fewe r f i nan cia l

“ B ui lt- fo r-Rent” Si n g l e - Fam i l y H ousi n g Fore ca s t: Ea si n g In 2023 an d B oom i n g In 2024 / 202 5 — Forbes

re sp o nsi b i l i t i e s, t han t h ey wo ul d h ave a s h o m e ow n e rs.

•

“Re nte rs o f si n g l e - fami l y h o m e s can have p ri vate yard s, n o o n e l i vi n g above o r b e l ow t h e m, p e t s, an d g ara g e s — th e p ri mar y feat ure s t hat m o t i vate p e ople to ow n.”

2023 E m e rgin g Tre n d s in R e a l Es ta te ® R e por t — PWC a n d U rb a n La n d I n s titu te , p a g e s 49 – 50

34 l 202 3 TRE N D S RE P O RT

Increase in Rent-by-Choice Households Causes Blurring of Demos T H E E C O N O M I C A N D C U LT U R A L A R C O F R E N T E R S A R E S H I F T I N G U P WA R D , WHICH INVITES A BLUR OF GENERATIONAL BEHAVIOR: “ Wha t is dif fere n t ove r t h e pa s t s eve ra l

B e cause o f t hi s shi ft , “[apar t m e nt ]

yea rs ha s been a g row t h i n d i s c re t i on a r y

i n d ust r y l ea d e rs n ow re co g ni ze a b l urrin g

rent a l h o u seh ol d s , a l s o kn own a s re n t- by-

o f b e havi o ral l i n e s a cro ss g e n e rat i o ns.

ch o ice h o u seh ol d s . Accord i n g to H a r va rd ’s

Wh e n i t co m e s to h o usi n g typ e n e e d

J oint Center fo r H ou s i n g S t u d i e s (JC H S),

o r p re fe re n ce , g e n e rat i o nal co h o r t s —

th e nu mber o f re n te rs m a ki n g a t l ea s t

g e n e rat i o n Z , mi l l e nni al s, g e n e rat i o n X, a n d

$75 ,0 0 0 ju mpe d by 4 8 p e rce n t ove r t h e

e mp ty- n e ste r baby b o o m e rs — a c t m ore

deca de en din g j u s t b e fore t h e pa n d e m i c ,

l i ke ea ch o t h e r t han n o t . ‘O ur custo m er

to 11. 3 m illio n. Wi t h t h i s i n c rea s e , t h e

ex p e ri e n ce re search sh ows i t ’s m o re

sha re o f renter h ou s e h ol d s i n t h i s i n com e

ap p ro p ri ate to cl assi f y p e o p l e by [b uyin g

g rou p ro se f ro m 20 p e rce n t to 26 p e rce nt .

patte rn] b e havi o rs t han by g e n e rat i o n a l

You n ger, o lder, a n d m ore e con om i c a l l y,

co h o r t s,’ says t h e CEO o f o n e o f t h e

ra cia lly, a n d cu lt u ra l l y d i ve rs e h ou s e h ol d s

nat i o n’s to p 20 p ri vate l y h e l d mult i fam ily

tog et h er w ill b e n d t h e e con om i c a n d

d eve l o p e rs. ‘ Yo u’re g o i n g to f i n d p e o ple

c u lt u ra l a rc o f re n te rs h i p u pwa rd .”

i n g e n Z an d mi l l e nni al s an d eve n g e n

2023 Em ergi n g Tre n ds i n R e al Estate ® R e po r t — PWC an d U rban Lan d Inst i t ute , pag e 3 9

Xe rs t hat have ve r y si mi l ar b e havi o ral co mp o n e nt s an d so m e o f t hat i s st a g e of l i fe , b ut n o t al l o f i t i s.’ ” 2023 E m e rgin g Tre n d s in R e a l Es ta te ® R e por t — PWC a n d U rb a n La n d I n s titu te , p a g e 40

2023 TRENDS RE PORT l 35

Once Amenities Are Now Table Stakes Scramble THE CHANGING PAT TERN OF CONSUMERS’ NEEDS AND PREFERENCES ARE DICTATING MUST-HAVES IN THEIR DECISION OF WHERE TO LIVE: Ce r t a in a m enit i e s h ave b e com e “ n on - n e g o t i ab l e st an d ard s as techn o lo gies im p rove .” S om e of t h e s e tab l e st ake s am e ni t i e s i n clu de: •

Th e desire for i n d oor/ou td oor l i vi n g

•

Fea t u res a n d f u n c t i on a l i ty for h ea lt h an d we l l - b e i n g

•

H o m e desig n s for a n i m b l e work / l i fe bal an ce

•

H o list ic h o m e te ch n ol og y s ol u t i on s , such as pa cka g e d e l i ve r y m a na gem e n t , s m a r t l ocks , p ri va cy, s e curi ty syste ms, an d se l fser v ice a cce s s to con c i e rg e

“ ‘ Sin ce COVI D -1 9, we we re a b l e to p i vot to a te chn o l o g y fo o t p ri nt for o u r bu sin es s m od e l t h a t re d u ce s re l i an ce o n p e o p l e an d i mproves t h e cu s tom e r ex p e ri e n ce ,’ s a id t h e CEO o f a p ub l i cl y tra ded, to p -10 -ra n ke d m u lt i fa m i l y a pa r t m e nt ow n e r- d eve l o p e r. ‘ So, it wa s a n a cce l e ra t i on of wh a t we’ ve se e n i n o t h e r se c to rs to a self-ser v ice b u s i n e s s m od e l . T h e co re o f i t i s, “How d o yo u i ntera c t w it h you r c u s tom e r ? ” a n d i f t hat g e t s d i sr up te d o r t h e rules o f t h e roa d ch a n g e , “ H ow q u i ck c an yo u a d ap t? ” ’ ” 2023 Em ergi n g Tre n ds i n R e al Estate ® R e po r t — PWC a n d U rb a n La n d I nsti tute, page 40

36 l 202 3 TRE N D S RE P O RT

Affordable Housing Should Be Top of Mind WITH THE ECONOMIC SHIFT IN THE NATION AFFECTING HOUSING, IT ENCOURAGED THAT PROPERTY OWNERS KEEP AFFORDABLE OPTIONS AT THE FOREFRONT: “ ‘R e g u l a ti o n i s so m e t hi n g t hat s h ou l d b e to p o f mi n d fo r a l o t o f p rop e r ty ow n e rs. An d we’re st ar t i n g to s e e s i g ni f i cant l y m o re re nt co nt ro l l aws b e i n g passe d at t h e l o cal an d m u n i c i pal l eve l s. That d o e s have t ri ck l e - d ow n i mpa c t s to i n d i vi d ual p rop e r ty ow n e rs.’ That warni n g com e s f ro m t h e h ea d o f a d vi so r y se r vi ce s fo r a real e st ate da ta a n a l y t i c s f i rm. As sh e lte r co st s i n creasi n g l y st rai n h o use h old b u d g e t s , so m e st ate an d l o cal g ove rnm e nt s are re so r t i n g to re g u l a t i on to a d d re ss affo rd ab i l i ty.

“As of s p ri n g 2022 , at l east 17 st ate s we re co nsi d e ri n g so m e form of re nt co nt ro l l e g i sl at i o n, a cco rd i n g to Nat i o nal Mu lt i fa m i l y Ho usi n g Co un ci l t ra cki n g . Th e st ate s span a l l re g i on s o f t h e co unt r y an d b o t h p o l i t i cal par t i e s, d e m on s t rat i n g t h e b rea dt h o f f r ust rat i o n w i t h ri si n g re nts. ... t h e volum e an d ran g e o f t h e se p ro p o sal s sh ow just h ow wi d e s p rea d t h e co n ce rns are , an d so m e o f t h e se i ni t i at i ves cou l d b e revi ve d i f re nt s d o n o t co o l so o n.”

202 3 Em e rg in g Tre n d s in R e a l Es ta te ® R e p o r t — PWC a n d U rb a n La n d Inst i t ute , p a ge 27

“A f ford a b l e h o usi n g p ro g ram sup p o r t o f ap p rox i mate l y 6 4 0,0 0 0 u ni t s nat i o nw i d e i s sch e d ul e d to ex p i re ove r t h e n ex t e i g ht years. Thi s i s i n a d d i t i o n to an e st i mate d sh o r t a ge of 7 m i l l i o n l ow- i n co m e uni t s n e e d e d to m e e t d e man d .

T h e s e ex p i rat i o ns p re se nt a uni q ue i nve st m e nt o p p o r t un ity to m a i n t ai n t h e affo rd ab l e h o usi n g d e si g nat i o n o r to re ha b a n d conve r t t h e m to marke t- rate uni t s. Affo rd ab l e h o usi n g i nve s t m e nt i s par t i cul arl y att ra c t i ve b e cause o f st ro n g an d s t a b l e f u n d am e nt al s, g row i n g d e man d an d a cce ss to m o re favora b l e l e n d i n g te rms, such as l o n g e r l oan te rms, hi g h er l oa n - to -val ue rat i o s an d l o n g e r am o r t i z at i o n p e ri o d s.”

U. S . R e al Es ta te Ma rke t O u tlo o k , C h a p te r 7, Mu ltifa m ily — C R BE

2023 TRENDS RE PORT l 37

38 l 202 3 TRE N D S RE P O RT

Climate Change’s Growing Impact on Real Estate THE STATE OF THE ENVIRONMENT WILL BECOME A GREATER DETERMINING FACTOR IN HOUSING DECISIONS: “C lima te cha n g e m ay a lte r t h e d yn a m i cs

“Ri si n g d i saste r- i nsuran ce co st s w i l l

of w h ere peo pl e wa n t to l i ve a n d i nve s t . I n

al so make ex t re m e l y cl i mate - ri sky area s

a ddit io n to t h e d i s com for t a n d h ea lt h ri sks

eve n m o re ex p e nsi ve . So m e A m e ri cans

of liv in g in ever- h otte r cl i m a te s , e n e rg y

w i l l b e p ri ce d o ut o f cl i mate - ri sky areas

cos t s rise w it h te m p e ra t u re s , a s d o t h e

l i ke b ea chf ro nt F l o ri d a an d t h e hi l l s o f

ri sks o f power ou t a g e s a s m ore s t ra i n i s

Cal i fo rni a b e cause o f bal l o o ni n g i nsura n ce

pl a ced o n powe r g ri d s . Ex te n d e d d rou g ht

co st s.” Re d f i n ex p e c t s “d i saste r- i nsuran ce

con dit io ns m ay l i m i t n ew d eve l op m e n t

rate s to co nt i nue ri si n g n ex t year (an d

beca u se a u t h o ri t i e s m ay l i m i t n ew

b eyo n d ), re n d e ri n g h o usi n g i n so m e a rea s

h o o ku ps.”

m o re ex p e nsi ve .”

2023 Em ergi n g Tre n ds i n R e al Estate ® R e po r t — PWC an d U rban Lan d Inst i t ute , pag e 24

H o u s in g Ma rke t Pre d ic tio n s 2023 : A Po s tPa n d e m ic S a le s S lu m p Will Pu s h Price s D own for th e Firs t Tim e I n a D e ca d e — R e df in

2023 TRENDS RE PORT l 39

THE ECONOMIC STATE MAY GENERATE SOME CHANGES WITHIN THE HOUSING INDUSTRY, BUT THERE IS A POSITIVE OUTLOOK WHEN IT COMES TO SENIOR LIVING: “Lo o kin g a h ea d , m a ny rea s on s ex i s t to b e o p t i mi st i c ab o ut t h e out lo o k fo r sen i or h ou s i n g , b u t t h e pa t h fo r ward may b e a b i t bu mpy du e to t h e p reva i l i n g wi n d s i n t h e b roa d e r e co n o my.

Invento r y w ill con t i n u e to ex pa n d , a lt h oug h at a re d uce d pa ce i n t h e n ea r term , wh i ch s h ou l d a c t a s a t ai l w i n d fo r o ccupan cy i mprovem ent . A n d , wh i l e d e m a n d m ay al so b e affe c te d by e con o mic h ea d wi n d s , t h e va l u e p rop os i t i o n o f se ni o r h o usi n g — se cu rity, so cia l i z a t i on , e n g a g e m e n t , roo m an d b oard , care coordina t io n, a n d l i fe s tyl e — re m a i n s i n p l a ce an d ult i mate l y sh o u ld w in t h e d ay by a tt ra c t i n g n ew resi d e nt s to se ni o r h o usi n g proper t ies. I n a d d i t i on , t h e m ove m e n t o f many o p e rato rs to i n co rpo ra te we l l n e s s p rog ra m s i n to t h ei r o ffe ri n g s has t h e potent ia l to be a s i g n i f i c a n t com p e t i t i ve a d vant a g e as p o te nt i al resident s seek com m u n i t i e s t h a t h ol d p ro mi se to i mp rove t h e qu a lity a n d len g t h of t h e i r l i ve s .”

2023 Em ergi n g Tre n ds i n R e al Estate ® R e po r t — PWC a n d U rb a n La n d I nsti tute, page 45

03

Senior Living Trends

Unretirement TO MEET THE NEED OF SOCIAL ENGAGEMENT AND FINANCIAL SECURITY, SOME RETIREES CHOOSE TO ENTER THE WORKFORCE AGAIN: “[ A ] M ay 2022 re p or t f rom A A R P, c i t i n g d at a f rom I n deed, fou n d t h a t 1 .7 m i l l i on A m e ri cans wh o ret ired a yea r ea rl i e r h a d re t u rn e d to t h e wo rkfo rce. Kim C h a p l a i n , a s p e c i a l i s t a d vi se r for wo rk a t t h e U K ’s Ce n t re for Ag e i n g B e tte r, tol d t h e G u a rdi a n t h a t t h e org a n i z a t i on ‘ su spec t s t h e ri s i n g cos t of l i vi n g i s p l ayi n g a rol e.’ … O t h ers a re re t u rn i n g i n s ea rch o f so ci al i ntera c t io n. ‘ We h ave a rea l s e ri ou s i s s u e i n t hi s cou nt r y o f seni or l on e l i n e s s a n d d e p re s si o n.

Th e pa n demic rea l l y exa ce rba te d t h a t ,’ An d rew Mea dows, senior vi ce p re s i d e n t a t U b i qui ty R et irem ent + Savi n g s , tol d A A R P. ‘Ma ny se ni o rs were fo rced to s t ay a t h om e , a n d n ow t h ey are thinkin g o f ente ri n g t h e work force a g a i n fo r socia l intera c t i on s .’ ” T h e Future 10 0: Tre n ds an d Ch an g e to Watch in 2023 — Wun derm an Th om pson In te l l i g e n ce , pag e 21 8

42 l 202 3 TRE N D S RE P O RT

Sector Maturation TO REACH A “YOUNGER OLD” DEMOGRAPHIC WITHIN SENIOR LIVING, RETIREMENT COMMUNITIES ARE KICKING UP THEIR AMENITY OFFERINGS: “It is a n excit in g t i m e i n t h e s e n i or l i vi n g i n d ust r y as t h e se c to r mat ure s an d p ro d uc t of ferin gs beco m e i n c rea s i n g l y d i f fe re n ti ate d . M uch l i ke t h e h o te l i n d ust r y, w i t h o ffe ri n gs f rom M o tel 6 to t h e R i t z- Ca rlton , op e ra to rs, d eve l o p e rs, an d cap i t al p rovi d e rs are i n c rea sin gly se g m e n t i n g t h e s e n i or h ousi n g marke t by b o t h p ri ce p o i nt an d se r vi ce of ferin gs. ‘Ac t ive a d u lt ’ of fe rs a m e n i t i zed re nt al h o usi n g fo r t h e ‘ yo un g e r o l d ’ co h o r t se ekin g co mmu n i ty i nvol ve m e n t , l i fe s ty l e , p urp o se , an d co nn e c t i o n. Th e ‘Fo rg o tte n Mi d dle,’ a term coi n e d by t h e N a t i on a l I nve st m e nt Ce nte r fo r Se ni o rs Ho usi n g & Care (NI C) in it s 2019 s e m i n a l s t u d y t h a t a s s e sse d an d q uant i f i e d t h e n e e d fo r m o re affo rd able h ou sin g a n d ca re op t i on s for m i d d l e - i n co m e se ni o rs, o ffe rs care an d h o usi n g o p t i o ns for th e va lu e -min d e d ol d e r a d u lt con s u m e r. An d ‘ult ra- l uxur y re t i re m e nt co mmuni t i e s’ o ffer ol d er a du lt s hig h - e n d con c i e rg e l i fe s ty l e l i vi n g o p t i o ns w i t h we l l n e ss ce nte rs, f i ve - st ar c ul ina r y o pt io n s , e n te r t a i n m e n t , a n d A- l i st cult ural eve nt s. A n d , o f co urse , t h e t ra d i t i o n a l se nio r h o u sin g p rod u c t re m a i n s , wi t h a p ri ce p o i nt t hat fal l s b e twe e n t h e two an d of fers a va lu e p rop os i t i on of s e c u ri ty, s oci al i z at i o n, e n g a g e m e nt , ro o m an d b oard , care coordina t io n, a n d l i fe s tyl e .”

2023 Em ergi n g Tre n ds i n R e al Estate ® R e po r t — PWC a n d U rb a n La n d I n s titu te , p a g e 42

2023 TRENDS RE PORT l 43

Wellness Value Proposition WHEN LOOKING FOR THE RIGHT RETIREMENT COMMUNITY TO CALL HOME, SENIORS WILL PRIORITIZE A PLACE THAT OFFERS WELLNESS PROGRAMS: “Ma ny o pera to rs i n c rea s i n g l y re cog n i ze t hat se ni o r h o usi n g prov ides a n envi ron m e n t t h a t c a n p rom o te an d sup p o r t h ealt h an d welln ess, e n t i ce m e n t s to t h e ba by b o o m e rs as t h ey a g e an d seek t h e a fore m e n t i on e d p rove rb i al fo unt ai n o f yo ut h.

Fur t h erm o re, t h e m ove m e n t of m a ny o p e rato rs to i n co rp o rate welln ess pro gra m s i n to t h e i r of fe ri n g s has t h e ab i l i ty to b e a si gnif ica nt co m p e t i t i ve a d va n t a g e a s po te nt i al re si d e nt s se e k com m u nit ies t h a t h ol d p rom i s e to i m p rove t h e q ual i ty o f t h e i r l i fe t hro u gh prog ra m s foc u s e d on t h e inte l l e c t ual , p hysi cal , socia l, spirit u al , voc a t i on a l , e m ot i on a l , an d e nvi ro nm e nt al di m ensio ns o f we l l n e s s a s d e f i n e d by t h e I nte rnat i o nal Co un ci l on Ac t ive Agin g .”

2023 Em ergi n g Tre n ds i n R e al Estate ® R e po r t — PWC a n d U rb a n La n d I nsti tute, page 42

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Senior Housing as Part of the Continuum of Care RETIREMENT COMMUNITIES OFFERING A FULL CONTINUUM OF CARE, ALSO KNOWN AS A LIFE PLAN COMMUNITY, GIVE RESIDENTS PEACE OF MIND FOR G U A R A N T E E D H E A LT H C A R E I F E V E R N E E D E D : “ S i m p l y s t a te d , se ni o r h o usi n g o p e rato rs i nfl ue n ce so ci al d e te rm i n a nt s o f h ealt h fo r hun d re d s o f t h o usan d s o f o l d e r A m e ri c a n s . O p e rato rs can h e l p mana g e chro ni c i l l n e ss an d ke e p ol d e r a d ult s h ealt hy — t h ey have 24 / 7 eye s o n re si d e nts a n d c a n syste mat i cal l y m o ni to r chan g e s i n co n d i t i o ns. Pro perly m a n a g e d , t hi s can re sult i n fewe r re si d e nt h o sp i t al i z at i o ns, re d u ce fe d eral an d st ate - l eve l h ealt h care sp e n d i n g , an d a c t a s a c a t a l ys t fo r fut ure b usi n e ss o p p o r t uni t i e s an d co l l ab o rat i ons.

Fu r t h e r, t h o ug ht ful care i nte r ve nt i o n can p rovi d e sup p o r t to th e ove ra l l h ea lt h care e co syste m t hro ug h t h e sup p o r t an d creation of con s c i e n t i o us aware n e ss an d fo l l ow- t hro ug h. An d , o n ce s enior h ou s i n g i s ful l y re co g ni ze d as par t o f t h e h ealt h care co nt i nuu m, s e n i or h ou si n g o p e rato rs w i l l b e ab l e to par t i ci pate i n t h e reve n u e s t reams asso ci ate d w i t h a cap i t ate d ri sk- shari n g m odel of c a re .”

202 3 Em e rg i n g Tre n d s in R e a l Es ta te ® R e p o r t — PWC a n d U rb a n La n d Inst i t ute , pag e 42

2023 TRENDS RE PORT l 45

46 l 202 3 TRE N D S RE P O RT

Tailwinds for Occupancy Recovery S U P P LY A N D D E M A N D A R E T H E D R I V I N G F A C T O R S W I T H I N SENIOR LIVING OCCUPANCY: “ Two t a ilw in ds s u p p or t a n on g oi n g occ upan cy re cove r y fo r se ni o r h o usi n g . Fi rst , on t h e su pply s i d e , t h e n u m b e r of s e n i or h o usi n g uni t s un d e r co nst r uc t i o n i n t h e seco n d qu a r ter of 202 2 for t h e 3 1 N I C MAP Pri mar y M arke t s was t h e fewe st si n ce 2015. A n d t ha t pa tte rn m ay re m a i n i n pl a ce — at l east i n t h e n ear te rm — b e cause senio r h o u sin g s t a r t s [ to] con t i n u e to l in g e r at m o d e rate l eve l s an d re mai n we l l be low t h eir pea ks s e e n i n t h e 201 6 – 201 8 p e ri o d . Thi s i s b e cause ri si n g p ri ce s fo r ma teria ls a n d [ e m e rg i n g t re n d s i n ] i n f l at i o n, l ab o r sh o r t a g e s i n t h e b ui l d i n g t ra d e i n du st ries, a n d t h e ch a n g e i n Fe d p ol i cy o f hi g h e r i nte re st rate s are co l l e c t i ve l y affec t in g pla ns for n ew d eve l op m e n t ; many p ro je c t s i n creasi n g l y d o n o t p e n ci l o ut for rea so na ble re t u rn s .”

2023 Em ergi n g Tre n ds i n R e al Estate ® R e po r t — PWC a n d U rb a n La n d I n s titu te , p a ge 42– 43

“ Seco n d, dem an d i s a l s o a t a i l wi n d for an o n g o i n g i mp rove m e nt i n o ccupan cy.

In deed, dema n d , a s m ea s u re d by t h e ch an g e i n o ccup i e d i nve nto r y o r n e t abso rpt io n, wa s rob u s t i n t h e s e con d q uar te r o f 2022 , i n creasi n g at i t s st ro n g e st pa ce ever reco rd e d by N I C MA P Vi s i on exce p t fo r t h e p o st- pan d e mi c b o o st i n de m a n d in t h e l a s t h a l f of 202 1 . S i n ce t h e re cove r y b e g an i n t h e se co n d q uar te r o f 202 1, 78 percen t of t h e u n i t s p l a ce d ba ck o n t h e marke t have b e e n re o ccup i e d . As a re su lt o f t h es e con d i t i on s , t h e occ u pa n cy rate fo r se ni o r h o usi n g — w h e re se ni o r h ou sin g is def in e d a s t h e com b i n a t i on o f t h e majo ri ty i n d e p e n d e nt l i vi n g an d ass isted liv in g p rop e r t i e s — ros e 0.9 p e rce nt a g e p o i nt d uri n g t h e se co n d q uar te r of 2022 to 81.4 p e rce n t for t h e 3 1 N I C M AP Pri mar y M arke t s. Thi s marke d t h e f i ft h consecu t ive qu a r te r i n wh i ch occ u pa n cy d i d n o t d e cl i n e . At 8 1.4 p e rce nt i n t h e seco n d qu a r ter, occ u pa n cy wa s 3 .4 p e rce nt a g e p o i nt s ab ove i t s pan d e mi c- re l ate d l ow o f 78 .0 perce n t re cord e d i n t h e s e co n d q uar te r o f 2021 b ut was 5 . 8 p e rce nt a g e point s below it s p re - pa n d e m i c l eve l of 8 7. 2 p e rce nt i n t h e f i rst q uar te r o f 2020.”

2023 Em ergi n g Tre n ds i n R e al Estate ® R e po r t — PWC a n d U rb a n La n d I n s titu te , p a ge 43

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Staffing Challenges and Expenses, Margins, and Returns THE COMBINATION OF LABOR CHALLENGES AND OVERHEAD COSTS NEED TO BE FACTORED IN FOR THE EFFICIENCY OF SENIOR HOUSING: “[ L a bo r] a lso is a key con s i d e ra t i on , wi t h an i n creasi n g numb e r of opera to rs cit i n g l a b or s h or t a g e s a s a p o te nt i al l i mi t i n g con st ra int o n g row t h . I n t h e WMR E / N I C I nve sto r Se nt i m e nt Sur vey co n du c te d i n Ju n e 202 2 , j u s t u n d e r hal f o f re sp o n d e nt s (41 percent ) repo r te d t h a t l a b or s h or t a g e s have cause d a re d uc t i o n i n t h e nu mber of op e ra t i n g u n i t s / b e d s i n t h e i r p o r t fo l i o s. Thi s i s pre sent in g cha l l e n g e s for op e ra tors s e eki n g to mai nt ai n ce nsus, mu ch less grow a n d ex pa n d . … W h i l e g oo d fo r e mp l oye e s, l ow jobless ra tes pre s e n t ch a l l e n g e s to e m p l oye rs w h o must st aff th eir bu sin esse s . S u r veys con d u c te d by t h e NI C am o n g C- sui te ope ra to rs o f se n i or h ou s i n g a n d c a re p ro p e r t i e s hi g hl i g ht stra tegies to co m ba t l a b or s h or t a g e s a n d i n cl ud e rai si n g wa g e s, of ferin g f lexible work h ou rs , h i g h e r pay f re q ue n cy, i mp rovi n g th e wo rk env iro n m e n t a n d c u lt u re , re c rui t m e nt p ro g rams com pa ra ble w i t h t h os e u s e d to m a rke t to n ew re si d e nt s, an d col la bo ra t io n wi t h e d u c a t i on a l i n s t i t u t i o ns.”

2023 Em ergi n g Tre n ds i n R e al Estate ® R e po r t — PWC a n d U rb a n La n d I nsti tute, page 44

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Demographics Favor Senior Housing T H E P O P U L AT I O N O F A G I N G A D U LT S S E E K I N G H O U S I N G W I L L P O S I T I V E LY A F F E C T T H E G R O W T H O F RETIREMENT COMMUNITIES: “ T h e d e m o g rap hi cs s u p p or t i n g se ni o r h o usi n g c a n n ot be d e ni e d , as t h e n u m b e r a n d share o f o l d e r a d u lt s co nt i nue to g row.

For exa m p l e , t h e numb e r of p e rs ons 8 2 an d o l d e r — of te n t h e a g e at w hi ch a p e rs on m ove s i nto se ni o r h ou s i n g — i s g row i n g at a n a cce l erat i n g pa ce . I n 202 2 , t h ere we re 10.6 mi l l i o n A m e ri c a n s a g e d 8 2 an d ol d e r ; by 2026 , t hi s f i g ure i s p roj e c te d to g row to 1 2 . 3 m i l l i o n, an d by 203 0 to 14 . 8 mi l l i o n, a cco rd i n g to t h e U. S .

Ce n s u s Bureau. Fur t h e r, i n t h e n o t-ve r y- d i st ant fut ure , t h e ra t i o of a d ult chi l d re n fami l y care g i ve rs (t h o se a g e d 45 to 64) wh o a re avai l ab l e to t ake care o f a g i n g pare nt s (t h o se over 80 yea rs of a g e ) w i l l co nt i nue to shri nk at a p re ci p i to us pa ce f rom 7:1 i n 201 5 to 6:1 i n 2022 to 5 :1 i n 2026 to 4 :1 i n 203 1 an d to 3: 1 in 20 4 4 . “ Wi t h fewe r fami l y m e mb e rs an d sp o use s avai l ab l e fo r c a re g i vi n g … co n g re g ate se tt i n g s w i l l i n d e e d g e t a fur t h er b oos t i n d e man d . I n a d d i t i o n, t h e i n creasi n g se g m e nt at i on a n d d i f fere nt i at i o n o f se ni o r h o usi n g i n se r vi n g t h e vast n u m b e rs o f se ni o rs i n t h e mi d d l e - i n co m e co h o r t w i l l a d d a l a rg e d e man d p o o l fo r o p e rato rs to se r ve , as w i l l t h e m ove m e n t o f ‘ yo un g e r o l d ’ a d ult s i nto t h e a c t i ve a d ult s e g m e n t . Wi t h an i n d ust r y p e n e t rat i o n rate o f ro ug hl y 11 p e rce n t o f U. S . h o use h o l d s, t h e p e n e t rat i o n rate d o e s n o t n eed to i n c rea se d ramat i cal l y fo r o ccupan cy to ri se to p re - pan demic l eve l s .”

202 3 Em e rg in g Tre n d s in R e a l Es ta te ® R e p o r t — PWC a n d U rb a n La n d

2023 TRENDS RE PORT l 49

04

Student Living Trends

Enrollment Woes + Development Slows THE SLIGHT DECREASE IN ENROLLMENT AND ECONOMIC UNCERTAINTY POSE ISSUES FOR OWNERS AND DEVELOPERS: “As pa n dem ic-re l a te d re s t ri c t i on s ea s e d an d l i fe se e m e d to se tt l e m ore into n o rm a l cy, h i g h e r e d l ea d e rs h e l d o ut h o p e a COVI D 19 - era enro llm e n t d e cl i n e wou l d re b ou n d . That d o e sn’ t ap p ear to be t h e ca se. E n rol l m e n t fe l l by 1 .1 % i n fal l 2022 f ro m t h e p ri o r yea r, a cco rdin g to t h e N a t i on a l S t u d e n t Cl eari n g h o use Re search Ce nter. I nst it u t i on s s u f fe re d a c ros s t h e b oard — co mmuni ty col leges, fo u r-yea r p u b l i c col l e g e s a n d fo r- p ro f i t s. Le ss- se l e c t i ve col leges a n d two -yea r i n s t i t u t i on s b ore t h e b r unt o f t h e se declin es. … S ke p t i c i s m of col l e g e s ’ va l u e co ul d co nt i nue to p ush dow n st u dent cou n t s . A n d t h e s o - c a l l e d b i r t h d ear t h d uri n g t h e Grea t Recession i s a rri vi n g for h i g h e r e d ucat i o n, shri nki n g t h e con t in gent o f h i g h s ch ool g ra d u a te s avai l ab l e to e nro l l i n co l l e g e — a n d m ea nin g e n rol l m e n t wi l l l i ke l y co nt i nue to wan e .”

7 Hi gh er Educati on Tre n ds to Watch i n 202 3 — H ig h e r Ed D rive

“Eco n o m ic u n ce r t a i n ty i s a l s o c a u s i n g di ff i cult i e s fo r develo pers. Fin a n c i n g wi l l con t i n u e to prove d i ff i cult for 2024 , 2025 a n d p e rh a p s eve n 2026 d e l i ve ri e s,” said Tim o t hy B ra d l ey, p ri n c i pa l of TS B R ealty. He al s o st a ted: “Ove ra l l n ew p u rp os e - b u i lt st ud e nt h ou sin g su pply l eve l s wi l l s e tt l e i n t h e 25 ,000 b e d s over t h e n ext few yea rs , or a b ou t 6 0 p e rce nt o f t h e typ ica l a nnu a l vol u m e . T h i s l eve l of s u pp l y cann o t ke ep u p w it h d e m a n d d u e to e n rol l m e n t g row t h, shif t in g co nsu m e r d e m a n d s a n d a g i n g ex i st i n g i nvento r y, w hich i s a p os i t i ve i n d i c a tor fo r co nt i nue d out perfo rm a n ce i n top - t i e r m a rke t s a s we l l as fut ure c ap ra te st a bili ty, i f n ot com p re s s i on .”

W h at Exper ts Ex pe c t for S t ude n t H ousi n g i n 2023 — Mu ltiHousi n g News

52 l 202 3 TRE N D S RE P O RT

More College Consolidations on the Horizon CURRENT ECONOMIC STRESSORS PLACE EDUCATIONAL INSTITUTIONS ON THE WATCHLIST FOR POSSIBLE CLOSINGS AND/OR CONSOLIDATIONS: “ Ex p e r t s i n hi g h e r e d f i nan ce p re d i c te d t h e f i nan ci al st resses ea rl y i n t h e pan d e mi c wo ul d l ea d to so m e l ow- e nro l l m e n t col l e g e s ’ d e mi se , o nl y fo r fe d e ral pan d e mi c sup p o r t to s om ewh at shi e l d i nst i t ut i o ns. Howeve r, n o n ew fe d e ral aid a p p ea rs to b e co mi n g d ow n t h e p i p e l i n e . So m e i nst i t ut i o ns h a d a l rea d y t urn e d to auste ri ty m easure s, as t h e p o o l o f t ra d i t i on al - a g e co l l e g e st ud e nt s st ar t s to r un d r y. … As colleges con t i n u e to fe e l t h e pan d e mi c ’s l i n g e ri n g f i nan ci al p i n ch on top of d em o g rap hi c t re n d s p l a ci n g d ow nward p re ssure o n th e s i ze s of t h e i r st ud e nt b o d i e s,” m o re i nst i t ut i o ns w i l l l i ke l y see cl os i n g s an d /o r co nso l i d at i o ns.

7 H i g h e r Ed u ca tio n Tre n d s to Wa tch in 2023 — H igh e r Ed D rive

2023 TRENDS RE PORT l 53

Community Spaces Are a Must + Catering to Gen Z STUDENT HOUSING THAT OFFERS A STRONG SENSE OF COMMUNITY WILL BE ATTRACTIVE TO PROSPECTS: Bet h Pin der, CO O of Ca m p u s Ad va n t a g e , st ate d : “A d ynami c se nse o f co mm u n i ty i s c ri t i c a l to s u ccess. Eve nt s an d a c t i vi t i e s such a s co mmu n i ty g a rd e n s , s t u d y b u dd y p ro g rams, g i vi n g ba ck to t h e co mmu n i ty t h rou g h vol u n te e ri n g an d creat i n g eve nt s an d gro u ps t ha t i m pa c t ch a n g e a n d d ri ve t h e fut ure o f t h e e nv iro nm ent are i m p or t a n t to tod ay ’s st ud e nt s — a shi ft f ro m typ ica l po o l pa r t i e s , ba rb e c u e s a n d p i z z a par t i e s.”

W h at Exper ts Ex pe c t for S t ude n t H ousi n g i n 2023 — Mu lti- H o u s in g N ews

“Design ers a n d a rch i te c t s a re a l s o worki n g w i t h t h e n e e d s o f Ge n Z in min d. To c a te r to t h e you n g e s t g e n e rat i o n … ‘spa ce s are shif t in g towa rd s h a re d ex p e ri e n ce s ,’ whi ch m eans m o re o utd o o r spa ces, na t u ra l l i g h t , com m on a rea s fo r re creat i o n an d st ud yi n g , as well a s gree n s pa ce s .”

W h at Exper ts Ex pe c t for S t ude n t H ousi n g i n 2023 — Mu lti- H o u s in g N ews

54 l 202 3 TRE N D S RE P O RT

Privacy Please STUDENTS ARE SEEKING MORE PRIVACY IN THEIR SEARCH FOR HOUSING — A PRE-PANDEMIC TREND THAT HAS GAINED MOMENTUM: T h e re i s a n i n crease i n “ m o re si n g l e - o ccupan cy uni t s i n o ffc a m p u s p roje c t s … an d an i n crease i n si n g l e - o ccupan cy uni ts for n ew on - c a m p us d eve l o p m e nt s as camp use s l o o k to p rovi d e m ore op t i on s to a d d re ss st ud e nt s’ chan g i n g n e e d s, as we l l as p rov ide op t i on s for up p e r- d i vi si o n st ud e nt s to re mai n o n- camp us.”

Today ’s Develo p m e n t Tre n d s : L iv in g ‘La rge’ in S tu d e n t H o u s in g — S t ude n t H ous in g Bu s in e s s

2023 TRENDS RE PORT l 55

The Right Product Mix to Aid in Affordability THE FOCUS OF LIVING WITH LUXURY AMENITIES IS TAKING A BACK SEAT TO THE PRIORITY OF AFFORDABILITY: “A m ix o f u nit typ e s a n d p ri ce p oi n t s i s n ecessa r y in tod ay ’s e nvi ron m e n t b e c a use th e price o f ju s t a b ou t eve r y t h i n g h a s g o n e up — a t ren d h i g h e r e d u c a t i on h a s b e en l ea din g fo r qu i te a wh i l e . T h i s s om e t i m e s m ea ns st u dent s — a n d op e ra tors — h ave to prio rit ize, n o m a tte r h ow b i g t h e i r d e s ire s are . [B eca u se t h e ] ‘cos t of a col l e g e e d u cat i o n i s s ky ro cket in g , a n d ve r y few s t u d e n t s have th e f ina n cia l ab i l i ty to l i ve i n a b u i l d i n g wi t h lu xu r y/ h o te l a m e n i t i e s , cof fe e s h o p s, l azy rivers a n d t h e g a m i n g wa l l s ,’ [ s a i d Ne d Wi llia ms, senior vi ce p re s i d e n t of Mi ch a e l s Stu dent L iv in g a s s e r t s .] ‘ We’re s t i l l s e e i n g a p u sh fo r m o re ‘a f ford a b l e l u xu r y,’ s o i nf i l l , hi g h-rise, pede s t ri a n - to - c a m p u s p roj e c t s appea l to a broa d e r re s i d e n t re n t p rof i l e .’ ” Today ’s Devel o pm e nt Tre n ds: Li v i n g ‘ Larg e’ in St udent Ho usi n g — S t ude n t H ousi n g B usi n e s s1 0

56 l 202 3 TRE N D S RE P O RT

Going Green APPEALING TO A GENERATION THAT VALUES ENVIRONMENTAL CONCERNS WILL OPT FOR SUSTAINABLE HOUSING: “ Today ’s st u den t s a re typ i c a l l y con ce rn e d

Ro t h e nb e rg e r share d t hat e d ucat i o na l

abou t t h e env iron m e n t a n d t h e i r i m pa c t

i nst i t ut i o ns fo cuse d o n i mp l e m e nt i n g

on t h e wo rld we l i ve i n . S u s t a i n a b i l i ty

sust ai nab l e p ra c t i ce s camp us-w i d e w ill

i s a way o f life for m a ny s t u d e n t s , a n d

b e we l l - p o si t i o n e d to se r ve t h e st ud e nts

hi g h er edu ca t ion i n s t i t u t i on s a re t a ki n g

o f to m o rrow. DL R G ro up i s wo rki n g o n a

this into a cco u n t wh e n d e s i g n i n g s t u d e nt

carb o n- n e ut ral p ro je c t fo r Swar t hm o re

h ou sin g, in co rp ora t i n g g re e n fea t u re s a n d

Co l l e g e i n Swar t hm o re , Pa. Th e sch o o l’s

ai m in g to a tt a i n Lea d e rs h i p i n E n e rg y an d

n ew d i ni n g hal l an d co mmuni ty co mm ons

Env iro nm ent a l D e s i g n (L E E D ) p l a t i n u m

i s sl ate d to se r ve as a hub o f a c t i vi ty an d

sta t u s in t h eir n ew con s t r u c t i on a n d

a co rn e rsto n e fo r so ci al g at h e ri n g o n

ren ova t io n proj e c t s .”

camp us, al l w hi l e hi g hl i g ht i n g re d uced

1 0 Student Ho usi n g Tre n ds for 202 3 — Fi e rce Ed ucati o n

“Ge n Z ’s well-kn own i n te re s t i n

e n e rg y co nsump t i o n an d carb o n fo o t print .”

W h a t Ex p e r ts Ex p e c t fo r S tu d e n t H o u s in g i n 2023 — Mu lti- H o u s in g N ews

sust a ina bility is a l s o g e n e ra t i n g ch a n g e s i n t h e in du st r y. D L R G rou p G l oba l H i g h e r Edu ca t io n Lea d e r & S e n i or Pri n c i pa l S t u

2023 TRENDS RE PORT l 57

58 l 202 3 TRE N D S RE P O RT

Gender-Neutral Housing COLLEGES AND UNIVERSITIES ARE PROVIDING MORE OPTIONS FOR GENDER-INCLUSIVE HOUSING, ALLOWING ALL GENDERS TO LIVE IN A SHARED SPACE TOGETHER: “ Co - e d h ou si n g p o l i ci e s have b e e n chan g i n g fo r years, w i t h i n te n s i f yi n g campai g ns fo r g e n d e r i n cl usi vi ty l ea d i n g to m ore m i xe d g e n d e r h o usi n g i nstea d o f mal e o r fe mal e d o rms. M any col l e g e s a n d uni ve rsi t i e s are n ow p rovi d i n g co - e d h o usi n g bu t s t i l l g u a ra nte e st ud e nt p ri va cy by o ffe ri n g g e n d e r- sp e ci f i c s h owe rs , for examp l e .”

10 S t ude n t H o u s in g Tre n d s fo r 2023 — Fie rce Ed u ca tio n

“ G e n d e r- i n cl usi ve h o usi n g al l ows st ud e nt s o f al l g e n d e rs to l i ve tog e t h er i n a share d spa ce . Thi s o p t i o n o ri g i nate d as a re s p on s e to t h e i n creasi n g aware n e ss t hat sex an d g e n d e r are n ot t h e s a m e . Whi l e sex i s t ra d i t i o nal l y d e f i n e d i n b i o l o g i cal te rm s , g e n d e r i s a so ci al an d cult ural co nst r uc t t hat i nvo l ves h ow s om e o n e i d e nt i f i e s an d fe e l s. … G e n d e r- i n cl usi ve h o usi n g is m ore t h a n j ust co - e d d o rms. I t i s an i mp o r t ant ste p i n creatin g a n i n cl u s i ve an d safe e nvi ro nm e nt o n camp us fo r al l st ud e nts a n d e m b ra c i n g g e n d e r d i ve rsi ty. … Po l i ci e s re g ard i n g g e n d eri n cl u s i ve h ousi n g var y d e p e n d i n g o n t h e co l l e g e o r uni ve rsity.

S om e col l e g e s have b roa d p o l i ci e s al l ow i n g any st ud e nt to op t i n to g e n d e r- i n cl usi ve h o usi n g . O t h e rs cate r ex p l i ci t l y to t ra n s g e n d er an d g e n d e r n o n- co nfo rmi n g st ud e nt s.”

T h e Im por tan ce o f Ge n d e r- I n clu s ive H o u s in g — Be s t Co lle ge s

2023 TRENDS RE PORT l 59

05

Hospitality

Restaurant Shops THE COMBINATION OF DINING AND RETAIL IS ATTRACTING CONSUMERS LOOKING FOR IN-PERSON ENGAGEMENT AGAIN POST-PANDEMIC: “ Wit h t h e o n go i n g pa n d e m i c ch a n g i n g h ow p e o p l e sh o p an d e n ga ge w it h bra n d s , a n d t h e g rowi n g p o p ul ari ty o f e co mm e rce , con su m ers n ow n e e d m ore to b e d rawn to i n- p e rso n sh o p p i n g exp erien ces. Fa c tors l i ke conve n i e n ce an d e nhan ce d ex p e ri e n ce , of ten a sso cia te d wi t h on l i n e s h op p i n g , n ow n e e d to b e replica ted in bri ck a n d m or t a r s pa ce s i n o rd e r fo r co nsum e rs to prio rit ize go in g . “ While it ’s n o t u n com m on for re t a i l s tore s to co nt ai n re st aurant s, th e reverse — d i n i n g e s t a b l i s h m e n t s t h at al so o p e rate as sto re s — a re beco m in g m ore p op u l a r. T h e s e i n t i mate spa ce s create m ore m o dern ve rs i on s of t h e on e - s top ex p e ri e n ce s t hat l arg e ret a ilers have m a d e s o p op u l a r.”

2023 Tren d Repor t — Tre n d H unte r, pag e 86

62 l 202 3 TRE N D S RE P O RT

Membership Dining vs.

Elite Clubstaurants CONSUMERS ARE OPTING TO EMBRACE INNOVATIVE DINING EXPERIENCES AT ALL LEVELS: “ T h e ave ra ge m o d e rn co nsum e r i s much m o re p re o ccup i e d with a cce s s i b i l i ty n ow t han t h ey are w i t h excl usi vi ty. No r t h A m e rica n con s u m e rs ’ chan g i n g val ue s surro un d i n g p e rso nal st at us have force d b ra n d s to p ri o ri t i ze t h e sam e — w i t h n ew b usi n e ss m odels t h a t r u n on a cce ssi b i l i ty an d i nn ovat i o n i nstea d o f excl usi o n. … N ow, t h e se e st ab l i shm e nt s o ffe r eve r y t hi n g f ro m affo rd able m e m b e rs h i p s to d i ni n g a cce ss t hro ug h NF T p urchase s.”

202 3 Tre n d Re p o r t — Tre n d H u n te r, p a ge 229

I n con t ra s t to t h e a cce ssi b i l i ty t re n d fo r t h e ave ra g e m o d e rn con s u m e r, t h e f i n e d i ni n g sp h e re i s o ffe ri n g a n ew t i e r o f e l ite ea t i n g ex p eri e n ce s fo r t h e up p e r e ch e l o ns: o n e t hat p ri o ri t i zes m e m b e rs h i p an d excl usi vi ty, an d cate rs to t h e cr yp to e l i te . “ Pri va te m e mb e rs’ cl ub s are b e i n g hyb ri d i ze d w i t h re st auran ts, of fe ri n g h i g hl y p e rso nal i ze d co n ci e rg e se r vi ce an d to p - q uality food i n ‘b e h i n d t h e paywal l ’ re st aurant s o nl y o p e n to m e mbers.”

T h e Fut ure 10 0 : Tre n d s a n d C h a n ge to Wa tch in 2023 — Wu n d e rm an T h om pson In te llige n ce , p a ge 1 0 4

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Meta-travel THE HOSPITALITY SECTOR IS TAKING ADVANTAGE OF THE METAVERSE TO EXPLORE HOW IT CAN BOOST THE INDUSTRY WHEN IT COMES TO TRAVEL : “Hospit a lity bra n d s a re s te p p i n g i n to a c t as h o m e base s an d g u ides fo r a ris i n g cl a s s of m e t a tou ri s t s. J o shua Se ni o r, co fo un d e r of Leven a n d di re c tor a t B ra n co Ca p i t a l , p re d i c t s t hat ‘as t h e m e t averse evo l ve s f rom a s c i - f i con ce p t i nto a real i ty, eve r y i n d u st r y disru p te d by t h e d i g i t a l e ra wi l l fe e l i t s i mpa c t . We believe t h e po te n t i a l for c rea t i ve h os p i t al i ty b ran d s i s l i mi t l e ss.’ ” The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, page 66

64 l 202 3 TRE N D S RE P O RT

Supercommuters A POST-PANDEMIC SOCIETY IS NOW EXPERIENCING A GREATER DEMAND FOR IN-OFFICE WORK MANDATES , WHICH AFFECTS HOW EMPLOYEES CHOOSE TO COMMUTE: “A n ew bre e d o f co mmute r i s e m e rg i n g — o n e w h o sp e n ds t h e we e k wo rki n g i n t h e ci ty an d t h e we e ke n d s at h o m e i n t h e s ub urb s. ... As wo rk co n d i t i o ns co nt i nue to evo l ve , s u p e rcom mute rs are e mb ra ci n g l o n g - te rm co mmute s an d s u b s c ri b e d h o te l st ays i n o rd e r to mai nt ai n a co mfo r t ab l e d i s t a n ce f ro m ci ty l i fe w hi l e sh ow i n g up fo r i n- o ff i ce d ut ies.”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, pages 219–220

2023 TRENDS RE PORT l 65

Green Is a Responsibility CONSUMERS WHO TEND TO GRAVITATE TOWARD A MORE MODERN HOSPITALITY APPROACH WILL NOT SETTLE FOR GREENWASHING: Th e t ren d to sp ot for t h i s yea r i s t h a t h o sp i t al i ty o p e rato rs w i l l i n co rp o rate m o re sust a ina ble pra c t i ce s to c a te r to a con s um e r d e man d o f p ri o ri t i z i n g g re e n e ffo r t s.

Acco rdin g to t h e B ooki n g .com S u s t a i n a b l e Trave l Re p o r t 2022 , “ 7 2 % o f g l o bal travelers inten d to s t ay i n a s u s t a i n a b l e p ro p e r ty at l east o n ce i n t h e co mi n g year.”

Su stai n abl e Trave l R e por t 202 2 — Booking.com

“Hoteliers have n o ch oi ce b u t to s a t i s f y co nte mp o rar y g ue st s w h o are se nsi t i ve to socia l respo nsi b i l i ty a n d com m i tte d to sust ai nab i l i ty. Th e CCS I nsi g ht s Pre d i c t i o ns repo r t o n su st a i n a b i l i ty p re d i c t s t h a t by 2025 , a n ew g re e n ce r t i f i cat i o n w i l l b e di s played by we b s i te s u s i n g l ow- e n e rg y d e si g n an d co d e , i n d i cat i n g to g ue st s wh a t bra n ds ge n u i n e l y com m i t to t h e i r sust ai nab i l i ty g oal s. … e nvi ro nm e nt al sust a ina bility i s fore c a s te d to b e a s t ra te g i c i mp e rat i ve fo r b usi n e sse s i n 2023 . B e i n g a pa r t o f t his g re e n revol u t i on i s n ot a marke t i n g t ri ck anym o re , b ut a re sp o nsi b i l i ty for h o tels.

Hospitality Industry Trends in 2023: Responding to New Trends — Hospitality Net

66 l 202 3 TRE N D S RE P O RT

Holistic Hospitality, Health, and Well-Being SECTORS WITHIN THE HOSPITALITY INDUSTRY ARE CAPITALIZING ON WELLNESS AND HOW THAT APPEALS TO CONSUMERS: “Prevent a t ive m e d i c i n e a n d s e l f- c a re a re un d i sp ute d l y t re n d i n g ri g ht n ow. Th e we l l n ess in du st r y i s t ra n s form i n g i n to a b o o mi n g t ri l l i o n- d o l l ar marke t an d h ospit a lity venu e s a re we l l p os i t i on e d to t ake a l arg e p i e ce o f t h e p i e , e sp e ci al l y th ose w it h ex ist i n g s pa fa c i l i t i e s . I n a d d it i o n to t h e usual b eauty an d re l axat i o n spa o f ferin g, t h e re i s ra p i d l y g rowi n g d e man d fo r h ealt h d i a g n o st i c te chn o l o g y an d bespo ke t rea t m e n t p l a n s d e l i ve re d by ex p e r t s w h o co n d uc t p e rso nal o r grou p sessio ns to d eve l op vi t a l i ty, h ea l i n g , st re ss mana g e m e nt , e m o t i o nal bal a n ce, m in df u l n e s s a n d b e tte r s l e e p.”

2023 Top Hospitality Industry Trends — Hospitality Net

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68 l 202 3 TRE N D S RE P O RT

Hyper-Personalization HOTEL , TRAVEL , AND RESTAURANT OPERATORS ARE LEARNING MORE ABOUT THEIR CONSUMERS AS A MEANS TO CREATE MORE PERSONALIZED EXPERIENCES: “ Tod ay ’s g u e st s have g row n to ex p e c t to b e re co g ni ze d an d t rea te d a s i n d i vi d ual s, o n e st ud y reveal e d t hat 7 1% o f b uye rs ex p e c t p e rso nal i ze d i nte ra c t i o ns. Th e p ro b l e m fo r m o st b u s i n e s s e s i s t hat t h ey ’re st i l l p e rso nal i z i n g at se g m e nt l evel a n d c u s tom e r ex p e c t at i o n has m ove d far b eyo n d t hat i n 2023, towa rd s hype r- p e rso nal i z at i o n. “ H os p i t a l i ty b usi n e sse s can i mp l e m e nt hyp e r- p e rso nal i z at i on by u s i n g te ch n o l o g i cal p l at fo rms such as CRM an d CEM w hi ch u se b i g d a t a to create hi g hl y custo mi ze d o n e - to - o n e i nte ra c t i o ns b e twe e n t h e g ue st an d t h e h o st at scal e . Ho te l , t rave l p rovi ders a n d re s t a u rant s are ab l e to d raw o n d at a to ut i l i ze i nsi g ht s into c u s tom e rs past b rowsi n g o r b uyi n g hab i t s, e nab l i n g h o te l s to t a i l or t h e i r offe rs an d p ro m o t i o ns, an d auto mat i cal l y p rovi d e s e r vi ce s t h e i n d i vi d ual i s searchi n g fo r. “ H ote l op e ra t i o ns m o re g e n e ral l y are i n creasi n g l y shap e d by th e u s e of m a n a g e m e nt syste ms to m o ni to r an d o p t i mi ze reve nu es, c u s tom e r re l at i o nshi p s, p ro p e r ty, chann e l s an d re p ut at i o n. Not to m e n t i on t h e ri si n g i mp o r t an ce o f i nte g rate d m e ssa g i n g , p re d i c t i ve a nal y t i cs, custo m e r p ro f i l i n g an d mi d d l eware , wh i ch s e e ks to co nn e c t any d i sparate syste ms. Eve n i f [yo ur] e s t a b l i s h m e nt has so m e te chni cal l i mi t at i o ns, t h e f ro nt o f h ou se tea m c a n g o t h e ex t ra mi l e to p e rso nal l y g re e t g ue st s i n t h e of f l i n e worl d .”

202 3 Top H os p ita lity I n d u s tr y Tre n d s — H o s p ita lity N e t

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W W W. T H E LY S T . C O M

1 1 0 Wi l d B a s i n R oa d , Sui te 35 0, Aust i n, TX 78 746 P h o n e: (5 1 2 ) 579 - 5 460 E m ail: co nt a c t @ t h e l yst .co m