Luxury Apartment Buildings Tempt Renters With Over-the-Top Pet Amenities. ‘Dog People Really Are Dog People.’
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Luxury Apartment Buildings Tempt Renters With Over-the-Top Pet Amenities. ‘Dog People Really Are Dog People.’

Dog art class, ‘yappy hours,’ rooftop play spaces: How developers court high-price tenants

By MAGGIE EASTLAND
Thu, Aug 24, 2023 8:31amGrey Clock 3 min

The beauty pageant was in full swing outside an apartment complex in an Atlanta suburb. Decked out contestants pranced up and down a red carpet, while dozens of residents cheered and snapped photos.

The winner, who wore a custom-tailored red gown made by one of the tenants, went by the name Choupette. The gown didn’t quite cover her tail.

It’s unlikely Choupette understood everything that happened that night, even though her prizes included a stuffed catfish toy and a container of dehydrated chicken livers. Chris Melerski, the building resident who owns the Greater Swiss Mountain dog that won the crown—a gold foam board cutout, trimmed with faux white fur—was very appreciative.

“Dog people really are dog people,” he said. “When they offer things like this where you live, it means a lot.”

For years, pet needs tended to be an afterthought for the firms that managed luxury apartment towers. Landlords believed that showering tenants with deluxe amenities such as fitness centres, swimming pools, basketball courts and outdoor grilling stations was the way to fill up a building and command high rents.

Covid-19 altered that calculus after an explosion in pandemic pets. Millions of Americans adopted dogs as companions for long stretches stuck at home.

Pet mania has unleashed fierce competition among property owners to lure new tenants by offering the most generous—and sometimes over-the-top—dog perks, from dog schools to pet happy hours and giant rooftop dog parks. About 36% of U.S. apartment residents had a pet in 2022, according to a survey by the National Multifamily Housing Council.

“From the moment you start thinking about your business plan and start thinking about the design, you’re thinking about pet owners,” said Raul Tamez, a senior director for Greystar Real Estate Partners, the largest U.S. apartment manager, which operates more than 2,800 rental properties.

Greystar’s San Diego luxury high rise features a “bark bar” in the lobby with treats, bowls of water and a list of every five-star dog walker who works nearby.

Landlords say renters are prioritising the needs of their pooches over other factors long considered the most crucial when choosing a place to live. A survey of 1,170 apartment renters this year by developer Cortland found that dog owners rank a building’s pet policies, such as size restrictions and fees, as more important than even the cost of rent or a property’s location, according to the Atlanta-based firm that manages more than 250 apartment properties.

When Mike and Kelli Callanan looked for a new place to live in New York City, their pet’s needs were top of the list. The Manhattan building they found features a pet-bathing and grooming area, and doormen with a weakness for doling out dog treats.

“Darby was the main reason that we moved,” said Kelli Callanan, referring to their mini bernedoodle.

New York developer Related hired a designer to build a 5,600-square-foot rooftop dog park atop a San Francisco apartment building. The park is matted out in artificial turf and includes a replica fire hydrant to encourage bathroom breaks. Staff take care of cleaning.

In New York and other cities, Related also created Dog City, a daycare with activities including art, gardening and baking, aimed to accommodate dogs that live in its buildings.

For one project, staff dipped dogs’ paws in pet-safe paint and guided them where to stomp around the canvas to form the shape of a tree—one of many activities likely more entertaining for the owners than the dogs. Employees dressed pups up as artists to take photos of each with their paintings. Charcoal and Ashes, Annette Krayn’s two Chihuahuas, gave the art to their “Grandma.”

All dogs undergo temperament exams to ensure they can get along with daycare classmates. New dogs meet with each existing member individually, under the supervision of staff on the lookout for troublemakers.

“It’s harder than getting into a kindergarten at this point,” said Krayn. Charcoal initially failed the test—Krayn said he was dealing with anxiety after a kidnapping incident—so she enlisted a handler to help him pass the exam.

Cortland hosts “Yappy Hours.” The outdoor mixers offer peanut butter and pretzel swirl flavoured Ben & Jerry’s Doggie Desserts and “pup cup” ice cream for the dogs, and pizza, tacos and loaded fries from food trucks for the humans. At some buildings, staff set up sprinklers, mini inflatable pools and splash pads in the dog park.

In New York, the Callanans’ dog, Darby, slipped away from the person who was walking her on Randall’s Island while the family was away in Massachusetts. Darby found her way across the river and back to her building in Manhattan, sopping wet. The doormen recognised her right away, and helped get her to a vet’s emergency room, where she spent two days recovering.

Dog City, the doggy daycare, sent Darby a get-well-soon gift basket that included blankets, toys, a Yeti water bowl, dog treats and a $100 Dog City gift card, with a note that read: “She is a miracle and a celebrity in our eyes with her amazing yet terrifying adventure.”



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HOUSING CRISIS WON’T BE SOLVED BY DEMAND-SIDE POLICIES, PROPERTY EXPERTS WARN

Australia’s housing affordability crisis is being fuelled by chronic undersupply, planning delays and rising development costs, as politicians continue to focus on the wrong solutions.

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Australia’s housing crisis will not be solved by first-home buyer incentives or tax changes alone, with leading property figures warning governments must tackle supply constraints if affordability is to improve.

Speaking at the Kanebridge Quarterly Property Leadership Summit in Sydney last week, expert project marketing specialist Sam Elbanna, property investor and fund manager Paul Miron and property consultant Karla McNeice said that a lack of housing supply remained the central issue facing the market.

Elbanna, Director of CPM Realty with more than 30 years’ experience in project sales,  argued that successive governments had focused too heavily on stimulating demand rather than addressing the barriers preventing new housing from being delivered.

“The misconception is that politicians think the way to solve the housing crisis is to drive demand,” he said.

“The reality is that’s not the way. This is a supply-side problem, and it needs to be solved on the supply side.”

Drawing on his experience in project sales, Elbanna said policies designed to help first-home buyers often had unintended consequences, pointing to previous grants that ultimately flowed through to higher property prices.

Instead, he said developers were facing increasing red tape, approval delays and rising costs, which were discouraging new housing supply.

“In the absence of stock, demand exceeds supply,” he said.

Miron, a Co-Founder and Fund Manager of Msquared Capital, said the housing debate had become overly focused on tax policy while overlooking broader structural issues.

He argued that affordability challenges stemmed from a combination of factors, including planning constraints, supply shortages, migration levels and interest rates.

“No-one can be 100 per cent certain on the real reason for property prices is going up,” he said.

“The reason why property prices are higher is a combination of interest rates, lack of supply, migration, vacancy rates and maybe taxes play a role.”

Miron was critical of recent federal housing policy changes, warning they could reduce the number of new homes being built and further constrain supply that was even highlighted in the budget.

He also highlighted the importance of the property sector to the broader economy, noting that residential real estate and related industries employed more than one million Australians.

McNeice, who advises developers on sales strategy and market intelligence, said understanding buyers had become increasingly important as affordability pressures intensified.

While affordability remained a major consideration, she said today’s buyers were focused on value rather than simply price.

“People are looking for value for money,” she said.

She said buyers were increasingly evaluating factors such as transport connections, walkability, nearby amenities and flexible living spaces that could accommodate changing family needs.

“What infrastructure is going on? Can I walk to the shops? Can I meet people at the local cafe?” she said.

The panel also discussed the mounting pressures facing developers, with Elbanna arguing that many projects become financially unviable from the moment a site is purchased.

“The viability of a development happens at the moment the site is bought,” he said.

He said rising construction costs, higher interest rates and overly optimistic feasibility assumptions had left some developers exposed as market conditions changed.

While acknowledging the growing number of smaller and first-time developers entering the market, Elbanna said property development required expertise across finance, construction, marketing and legal disciplines.

“It is actually a business that requires a level of expertise,” he said.

Looking ahead, the panel agreed opportunities remained in the market despite current challenges.

Miron said property should continue to be viewed as a long-term investment and cautioned against trying to time short-term market movements.

McNeice said success would increasingly depend on identifying projects that genuinely met changing buyer expectations.

Elbanna said affordable housing remained achievable, but developers needed to deliver more than just homes.

“We can provide affordable housing in this country,” he said.

“But we’ve got to wrap that affordable housing with the things that people want.”

As Australia’s housing affordability debate intensifies, the panellists agreed on one point: without a meaningful increase in housing supply, demand-side measures alone are unlikely to solve the nation’s property challenges.

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