2023 Trends Report

Trends Report

2023 Trends Report

The cultural zeitgeist is still rebounding from the drastic experiences endured since the onset of COVID-19 in 2020. 2020 was positioned to be a new beginning — a positive outlook on the new decade that was upon us. Of course, it’s now evident how quickly that positive energy turned into something no one could have imagined.

As Catalyst reflects on the cultural themes experienced from 2020–2023, the stress and hardship occurred in 2020 positioned us to emerge into 2021 with caution as we made our way through to recovery. From a cultural perspective, once 2022 was upon us, we were feeling very optimistic and ready for new beginnings, similar to how we felt at the onset of 2020. However, as the year went on, that optimism started to dim a bit with various global issues and cultural themes we were confronted with.

Fast-forward to the first quarter of 2023 and you’ll find the cultural zeitgeist and the markings of everyday life are still in rebound mode from the drastic experiences everyone underwent the past three years. The main theme and outlook for 2023 is a reprioritization and a reordering of the chaotic energy that continues to carry over from last year. With this reprioritization and reordering comes the need for an uplifting spirit:

“Community, creativity, and color vibrantly paint 2023, as last year’s unbounded optimism shifts to an exuberant need for uplift and play. … people are determined to show resilience, innovation, and joy in the face of continued hardship.”

In the world of marketing, the Pantone Color of the Year sets a precedent, a mood, a tone — creates an energy of inspiration. For 2023, Viva Magenta was selected as a bold, energetic hue described as “an unconventional shade for an unconventional time.” Against the current global climate of looming recessions, environmental uncertainty, and surging inflation rates, Pantone is offering brightness and hope by channeling inner strength:

“It’s brave, it’s fearless, it depicts optimism and joy,” says Leatrice Eiseman, executive director of the Pantone Color Institute. “It is a color that is audacious, full of wit and inclusive for all.”

In addition, Catalyst also wanted to lend some more vibrancy to the marketing palette with our own 2023 Color of the Season called The Future Is Green — a deep green/teal shade inspired by nature, growth, and well-being. Much like the excitement built by Pantone each year, the color green is full of hope and anticipation (think of phrases such as “the grass is greener” or “greener pastures”). This deep green shade is in the same jeweltoned family as Viva Magenta but is approachable enough to be woven into real-life spaces and tangible elements.

Throughout this 2023 trend report, you will pick up on a tension between chaos and order and hardship and joy. The push and pulls of these trends set the tone for 2023 and, hopefully, by the end of it, we will come out on the other side with new, innovative frameworks for how we see culture and the ever-evolving world we live in.

TABLE OF Contents

This report is a compilation of trends pulled from a variety of credible, market-related sources. The report begins with a general overview of trends that will be pervasive throughout all industries in 2023, and then further focuses on the industries of multifamily real estate, senior living communities, student housing, and hospitality.

Trends list curated and edited by Allison Mussoline and Dana Sleger. Layout and design by Haley Drinkwater.

A publication of Good Mood Media. All Rights Reserved. Copyright 2023.

Digital Trends

The two major topics dominating the digital trends landscape are the developments in Web3 and the metaverse. These two foundational trends will be discussed before addressing other various trends that support these concepts.

Web3

“Web3 is being touted as the future of the internet. The vision for this new, blockchain-based web includes cryptocurrencies, NFTs, DAOs, decentralized finance, and more. … The totality of these efforts is called ‘Web3.’ The moniker is a convenient shorthand for the project of rewiring how the web works, using blockchain to change how information is stored, shared, and owned. In theory, a blockchain-based web could shatter the monopolies on who controls information, who makes money, and even how networks and corporations work. Advocates argue that Web3 will create new economies, new classes of products, and new services online; that it will return democracy to the web; and that is going to define the next era of the internet.”

What Is Web3? — Harvard Business Review

“In simple terms, web3 is the decentralized internet — built on distributed technologies like blockchain and decentralized autonomous organizations (DAO) rather than centralized on servers owned by individuals or corporations.”

Important Difference Between Web3 and The Metaverse — Forbes

“The idea is that this will create a more democratized Internet. No single entity will control the flow of information or ‘pull the plug’ and kill a network, simply because [they] can as they own the hardware it’s running on. The servers, systems, and networks where applications are run from and where data is stored will, in theory, be owned by the users themselves, who will have voting rights over what rules and regulations are in place, and how they can be used. Why is it called web3? Because it’s thought that it will be the third major evolution of the internet, after the worldwide web (web1) and the usergenerated web (web2, or social media).”

The

The Important Difference Between Web3 and The Metaverse — Forbes

Photo by Georgia de Lotz on Unsplash

The Metaverse

The metaverse is “a shorthand for virtual worlds, where users can interact with each other and engage with apps and services in a far more immersive way. The term ‘metaverse’ first appeared in Neal Stephenson’s sci-fi novel Snow Crash, where it described a virtual reality world. … Today technology is quickly catching up with science fiction. ... More generally, the term is used today to refer to any online spaces that strive to create immersive environments.” Many times, the metaverse and Web3 are often conflated with each other; however, the two concepts do cross over in some very important ways. “The technology that’s used to build web3 — which includes blockchain, and blockchainbased cryptocurrencies like Bitcoin and Ethereum, and NFTs — unique digital ‘objects’ that are stored on a blockchain —

all have huge implications for the way we will make use of the virtual worlds of the metaverse for work, play, socializing and learning.”

The Important Difference Between Web3 and The Metaverse — Forbes

The metaverse continues to evolve and create new realities across all industries. “As metaverse activations continue to advance, the way we think about emerging technologies is becoming much more nuanced and engrained in the everyday— shaping a new reality where physical and virtual living are indistinguishable.”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, page 6

Photo by Kal Visuals on Unsplash

Artificial Intelligence (AI) and ChatGPT

IN 2022, OPENAI RELEASED CHATGPT, A TOOL THAT UTILIZES AI TO INTAKE, COMPREHEND, AND PRODUCE WRITTEN CONTENT THAT SOUNDS — SOMETIMES EERILY SO — LIKE IT’S HUMAN.

“In terms of creativity, OpenAI says GPT-4 is much better at both creating and collaborating with users on creative projects. Examples of these include music, screenplays, technical writing, and even ‘learning a user’s writing style.’ The longer context plays into this as well. GPT-4 can now process up to 25,000 words of text from the user. You can even just send GPT-4 a web link and ask it to interact with the text from that page. OpenAI says this can be helpful for the creation of longform content, as well as ‘extended conversations.’ GPT-4 can also now receive images as a basis for interaction.”

GPT-4: how to use, new features, availability, and more — Digital Trends

“During these conversations, ChatGPT is not only helping customers, but it is also gathering information that can be used for lead generation and lead nurturing. Marketers can also use ChatGPT to engage with website visitors and valuable segmentation information”

How Can Marketers Use ChatGPT? Here Are the Top 11 Uses. — Entrepreneur

“Before relegating your content strategy to ChatGPT, it’s important to understand the technology and its inherent limitations. Because it uses a language processing model, its output is based on a prediction of language. The result is a human-like response, but just like fallible humans, the bot can be wrong. Crucially, the model is not based on the factual foundation of the content.”

How Brands Can Use ChatGPT And Other Generative AI For Content Marketing — Forbes

“Our recent LinkedIn survey found that more than three-quarters of marketers want to use ChatGPT to improve their marketing performance, but only 40% are actively doing so right now.”

How can I use ChatGPT for marketing? — Smart Insights

“Marketers who want to employ ChatGPT to generate content should also be aware of potential impacts to SEO. Google has traditionally penalized auto-generated content, which it deems low quality in accordance with the company’s spam policy. Moreover, it’s important to consider the competitive landscape. ChatGPT’s software competes with Google, so there’s broad speculation that Google will move to penalize content generated by its competition.”

How Brands Can Use ChatGPT And Other Generative AI For Content Marketing — Forbes

“This is a unique moment in time where we do have agency in how it shapes society. And it goes both ways: the technology shapes us and we shape it. There are a lot of hard problems to figure out. How do you get the model to do the thing that you want it to do, and how you make sure it’s aligned with human intention and ultimately in service of humanity? There are also a ton of questions around societal impact, and there are a lot of ethical and philosophical questions that we need to consider. And it’s important that we bring in different voices, like philosophers, social scientists, artists, and people from the humanities.”

The Creator of ChatGPT Thinks AI Should Be Regulated — Time

“When it comes to figuring out acceptable uses for AI—as well as how to coordinate oversight and risk mitigation efforts—Murati said that she expects that the government, regulators, and companies such as hers will have to work together.

‘I don’t think that we can or should rely on the private sector alone,’ Murati said. ‘There is a combination of elements that come into play, and tight collaboration between private companies, governments, and regulators, as well as civil society.’”

Mira Murati: The woman behind ChatGPT on how AI is remaking society — Fast Company

New-Gen Ownership

A SIGNIFICANT TRANSITION IS HAPPENING WITH WEB3 WHERE USERS CO-AUTHOR AND CO-OWN DATA:

“A paradigm shift is under way. Decentralization is democratizing digital platforms — opening the door to new ownership models that will revolutionize the way brands and consumers interact with digital goods, services, and content.”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, page 14

“In the coming digital era of Web3, users will not only coauthor but co-own their digital experience.”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, page 13

“‘If you think about traditional social media, there is one company that controls everything and has all of the data locked away in their own servers,’ Zaven Nahapetyan, cofounder and CTO of Niche, tells Wunderman Thompson Intelligence. ‘What a decentralized social media platform does is distribute that data to other people. It democratizes it, meaning people have ownership and portability over their own data and content.’”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, page 13

Web3 Literacy + Cryptoliteracy

TECHNOLOGY IS ADVANCING TO REACH YOUNGER GENERATIONS — CHILDREN OF MILLENNIALS — AS A TOOL TO PROMOTE WEB3 LITERACY AND CRYPTOLITERACY:

“Building literacy in new technologies is crucial for people of all ages, but particularly for younger demographics who will likely grow up in a world where these technologies are ubiquitous, instead of simply in-development. Millennial parents are interested in setting their kids up for their future, and tech literacy in different forms is particularly important to them.”

2023 Trend Report — Trend Hunter, page 31

“As Web3 becomes more prevalent, some brands are focusing on building Web3 literacy among children. Programs and products in this space include everything from metaverse coding practice platforms, to family-friendly NFT platforms.”

2023 Trend Report — Trend Hunter, page 31

“Financial institutions and fintech brands want to demystify the metaeconomy. … The metaverse and Web3 are giving rise to new retail avenues and a nascent digital goods economy — all of which will inform spending patterns and are leading to the creation of a new cryptonomic ecosystem. But first, education needs to take place; the future of Web3 commerce hinges not only on adoption but also on education — for both consumers and brands.”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, pages 145–146

Web3 Brands

WITH THE GATEWAY OPEN FOR GREATER IMPACT AND REACH OF WEB3, BRANDS ARE ENCOURAGED TO KICK UP DIGITAL STRATEGIES:

“Web3 is inevitable. To prepare for its arrival, brands are arming themselves with updated digital strategies. … Niche is a new form of social media for Web3 that aims to democratize data and expand opportunities for growth for its consumers, users, and brands. Cofounder Zaven Nahapetyan tells Wunderman Thompson Intelligence that his new platform ‘opens up a lot of opportunities that don’t exist with traditional, nondecentralized social media, because — by the nature of decentralization — it makes it really easy to buy, sell, and trade content.’”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, pages 72–73

Mapping Reality

Ryan Mullins, CEO and founder of Aglet, positions mapping “‘as the latest phase of internet evolution,’ which is moving digital engagement ‘from pages and scrolling to places and movement.’ The significance of Web3, then, is much bigger than just blockchain and crypto — it is in creating a ‘spatial, place-based internet. It’s not only pages and people but reality itself that is made machine-readable.’”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, page 46

“Why the focus on maps? ‘The real revolution isn’t simply mapping but a new opportunity for UI and how we will interface with the internet,’ Mullins explains. ‘Mappings and computer vision are the start of a new spatial internet where reality is a first-person experience of movement and participation in a world.’”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, page 46

Metaverse Education

THE METAVERSE MAY SERVE AS A BETTER TEACHER THAN ONLINE LEARNING:

“Virtual learning has become popular in the last several years not only because of the pandemic, but because of its ability to make education more accessible despite geographic or cost-related barriers. … As the metaverse expands, brands and institutions are creating spaces in the metaverse that are designed to educate customers. Everything from specialized education to educational programs and games can now be observed in this virtual space.”

2023 Trend Report — Trend Hunter, page 35

Metaverse Support

THE METAVERSE ENABLES USERS TO HAVE A MORE IMMERSIVE CUSTOMER SERVICE EXPERIENCE:

“The metaverse’s uses are going beyond gaming and art/ design-based experiences and into functional processes that can benefit the various needs of both businesses and customers. … As the metaverse expands, customer service in the metaverse is becoming a recognized innovation that can create more valuable support experiences. … businesses are using it to create customer experiences that prioritize customers’ growing desire for more effective and immersive engagement with brands.”

2023 Trend Report — Trend Hunter, page 50

Metaverse Pop-up

SPECIAL INTEREST APPEAL BASED ON INNOVATIVE WAYS TO ENGAGE CONSUMERS WILL BE A CAPTIVATING MARKETING TREND:

“Retailers are creating unique ‘pop-ups’ within the metaverse, or in brick and mortar spaces that have adopted elements of the metaverse in their layouts and designs. These experiences offer a unique spin on a popular marketing technique. ... Brands that are able to merge the convenience of online shopping with the immersion of in-store experiences will be of special interest to consumers who have grown accustomed to digital-only brand experiences.”

2023 Trend Report — Trend Hunter, page 58

Metaverse Architecture

FROM A DESIRE FOR THE FANTASTICAL TO PUSHING THE LIMITS BEYOND TRADITIONAL DESIGN, THE METAVERSE TAKES ON AN ARCHITECTURAL ROLE:

“The metaverse is a space where the imagination can run wild and concoct structures that are otherwise impossible in the physical world. Consumers are turning to the digital space for content that fulfills their desire for the fantastical. Digital infrastructure is, therefore, being built using cutting-edge technology to provide visual stimulation and appease the consumer’s need for escapism.”

2023 Trend Report — Trend Hunter, page 200

“The metaverse welcomes more developments as architectural studios begin constructing buildings and other infrastructure to mimic the physical world. These structures are able to push the limits of traditional architecture with physics-bending designs.”

2023 Trend Report — Trend Hunter, page 200

Metaverse for Good

THE METAVERSE INTRODUCES A NEW ETHICAL WAY TO GENERATE AWARENESS ABOUT SOCIAL ISSUES AND HUMANITARIAN EFFORTS:

“The metaverse has allowed users to engage in new methods of communication that hone in on technological advancements. In a bid to reach virtual audiences, humanitarian and philanthropic organizations are communicating their efforts using the newly available technology. This brings real-world issues to the platform’s forefront, making it accessible to metaverse users who subscribe to social activism.”

2023 Trend Report — Trend Hunter, page 141

“Digital brand offerings are reaching beyond entertainment to benefit the physical world. … Companies taking advantage of flexibility, speed, and international yield in the metaverse can aid and support social causes with ease — harnessing the power to turn the metaverse into a force for social good.

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, page 36

Marketing and Design Trends

Creator Marketing + Creator Communities

PLATFORMS IN THE CONTENT-CREATION SPACE ARE PRIMED FOR CREATIVES TO SUCCESSFULLY CONNECT WITH CONSUMERS IN THE NEXT DIGITAL ERA:

TikTok’s impact over the last few years in everything from pop-culture to business is vast, and consumers who create content on this platform are inevitably looking to grow their audiences, brands, and their ability to receive money for their work. By supporting creators in this process, TikTok is able to ensure that those creators and their followings remain on the platform.”

2023 Trend Report — Trend Hunter, page 48

“As content-creation continues to see boosts in popularity, platforms in this space are increasingly offering programs, education, and opportunities for creators to learn how to best market themselves. TikTok is especially focused on supporting creators in this way.”

2023 Trend Report — Trend Hunter, page 48

Creators and developers are becoming the backbone for the metaverse: “As digital engagement moves from passive consumption to active creation … the role of brands is evolving. Creativity is becoming the new status symbol for the next digital era — and brands are transforming their offerings to connect consumers and creatives.”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, page 9

Literally “Literal” Typefaces (Design)

TYPEFACES ARE EMBRACING A NEW LOOK TO CAPTURE BRANDS’ INDIVIDUALITY MORE:

“Proprietary typefaces have been all the rage for years. So long as they exist as another line for an agency’s invoice to a client, they’re likely not going anywhere anytime soon, even if they look like Helvetica knockoffs straight out of Canal Street.

“Recently, some agencies have taken direct inspiration from the brands themselves, incorporating some of their notable attributes and characteristics into bespoke typefaces. Sure, it’s not uncommon to see some thematic details worked into a logo, but some brands are willing to take it further.

“There’s no better example than JKR’s refresh for Kraft Mac & Cheese. Dubbed Blue Box Sans, the shape of Kraft’s noodles makes its way into the typeface and has an over-the-top — but adorable — macaroni-

powered shelf presence. Auge’s redesign for Leibniz-Kek takes the rounded edges of the biscuits themselves, applying them to the customized logo and type used throughout the project. Casey Roarty’s design for chili oil Gulp takes the oily drips from the logo and works it into other parts of the branding suite and typography, while Collected Works’ Slug Club uses sea slugs to form the letter shapes for a funky, fun kombucha.

“Quirky, imaginative letterforms are all the rage, boldly-shaped formations that break from the stranglehold of Helvetica and Futura. Look for more thematically on-point typefaces that express a brand’s individuality and add a little more pizzazz in the process.”

Unboxing Tomorrow: Dieline’s 2023 Trend Report — The Dieline

Photo by Brett Jordan on Unsplash

Collage Core

BRANDS ARE TURNING AWAY FROM BLAND DESIGN AND STEPPING INTO A NEW CREATIVE ZONE THAT FUSES INNOVATION AND FANTASY:

“Brands are creating surreal designs and turning their packaging into a vibrant canvas with collage techniques. … Mad Lemon’s kitchen sink aesthetic radiates with psychedelic-tinged images for their lemonade-based cocktails, while Magia Negra brings a soothing ethereal vibe to their coffee liquor bottle. Kilinga’s bacanora packaging from Colangelo and Algoritmo Design spices things up with a label featuring a collage of desert flora interweaved with portions of the female form. The punk rockinspired Tank Garage Winery has been doing this for years but most recently created a mystical image of a woman wearing a helmet made of crystals for their crystal-fermented wine.

“Liquor brands have been doing this for ages, but it’s interesting to see how other brands outside of that category experiment with the technique/aesthetic. Day Job made the ‘chuegyest shit’ you’ve ever seen for sustainable bottled water brand Gen Z Water by utilizing 90s-styled computer graphics featuring seals puking waterfalls and orangutans resting on boom boxes. ToiletPaper Magazine also released a beauty and cleaning line with surrealist graphics and a bizarre POV — retro images of spaghetti on dish soap? Let’s do it.

“Bottom line — it’s OK for brands to get a little weird! After years of primped and preened visual identities and blanding, brands are still getting out of their comfort zone and giving consumers something extra.”

Unboxing Tomorrow: Dieline’s 2023 Trend Report — The Dieline

Photos by Charlota Blunarova and Marc Newberry on Unsplash

Stickermania

“An emoji is worth a thousand words. Case in point: you can text your best friend a string of smileys, and they’ll understand exactly what you mean, no words needed. Sure, some may claim peoples’ attention spans have shrunk, but perhaps we’re just using modern-day hieroglyphs. Either way, stickers communicate something quickly in a way that all those wordy words cannot.

“Brands are leaning more and more into the quirky, playful appearance that stickers can give — a mishmash of thoughts and ideas that’s reminiscent of Lisa Frank’s zany illustrations or middle school math class where you’d decorate your favorite notebook with doodles and actual stickers.

“Glonuts and Henry Mantecas use stickers to bring the consumer’s attention to valuable product information, like the flavor, carb content, or the type of ingredients. In the case of Crema Colada, the graphic stickers look just like ones you’d find on fruit in the produce section — an adorable approach for a drink with pineapple and coconut flavors. GoodPop and the Fishwife and Fly by Jing collab use a combo of sticker-like graphics that reflect the product itself, but they also add a sense of joy and playfulness. Stickers can also get incorporated as part of secondary branding or assets, like with the heating sleeve of Hot Pockets or snack brand Toodaloo.

“Thanks to emojis, memojis, GIFs, and photo and video social media apps, visual imagery has become a common way to communicate with others. At first glance, it might appear chaotic, but the designs harness an addictive, youthful energy with a method to its madness.”

Unboxing Tomorrow: Dieline’s 2023 Trend Report — The Dieline

USING VISUAL IMAGERY IN THE FORM OF EMOJIS, MEMOJIS, GIFS, AND MORE IS INCREASING AS A CONTINUED WAY TO CONVEY EMOTIONS AND COMMUNICATION:

Groovy Feels

DESIGN IS LEANING IN AGAIN TOWARD ART NOUVEAU FOR ALL THE PSYCHEDELIA FEELS FROM THE ’60S AND ’70S:

“Whether you lived through the Age of Aquarius or just really, really wish you did, packaging design inspired by psychedelia is giving us a trip through the 60s and 70s. Psychedelic art flourished during this age … This instantly recognizable aesthetic — band posters with bubbly, almost amorphous letters, dreamy depictions of animals like peacocks, and humans with luscious, flowing hair — pulled a lot of influence from Art Nouveau. This ‘new art’ came about during the late 1800s and early 1900s, a time of technological change, so artists wanted to highlight the beauty and vibrancy of life in response. Their work incorporated plants and flowers, abstract lines and shapes, elegant figures living their best life, and juicy color palettes.

“Today, we’re going through unbridled change, just like society was back in the Psychedelic 60s. Between political strife, racism, and war, these far-out designs remind us of the beauty in life. We’re seeing a resurgence of this design with heaps of trippy typography, including Crooked Coffee and Alive. Other brands like Mad Lemon and wine from Pedro Ximenez give us divine visuals with punchy color palettes.

“As we look ahead, we can first take a gander back to see that Art Nouveau was followed by Art Deco. Perhaps we’ll soon enter an era of more angles and symmetry—but for now, we really dig the groovy vibes of this trend.”

Unboxing Tomorrow: Dieline’s 2023 Trend Report — The Dieline

Photo by Andi Bocsardi on Unsplash

Feel-Good Feeds

IF A DIGITAL SOURCE OFFERS POSITIVITY AND SUPPORT, CONSUMERS WILL GRAVITATE IN THAT DIRECTION:

“Consumers are looking for positive modes of engagement and emotional support online. Emerging social media platforms are tapping into user desires for change, reformulating feeds around positivity and uplift.” Christopher Gulczynski, co-founder and CEO of the Niche app, states: “We see social media getting smaller, more intimate. People are moving towards these networks with like-minded shared interests, backgrounds, or identity.”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, pages 39

Photo by Matthew Hamilton on Unsplash

ACCORDING TO THE PWC AND URBAN LAND INSTITUTE’S 2023 EMERGING TRENDS IN REAL ESTATE® REPORT, THE MULTIFAMILY HOUSING INDUSTRY IS EXPERIENCING TRANSFORMATION:

“The early 2020s have been a transformative time for the housing industry as the pandemic caused people around the world to reevaluate both where they live and how they live. The United States experienced ‘the Great American Move’ in which households and businesses relocated to more affordable places, often to buy or rent a home with additional space and a yard, and farther from employment centers. Builders across the country could not keep up with the new demand — and supply chain interruptions, labor shortages, and permitting delays during the COVID-19 pandemic did not help matters. As a result, home prices escalated at historic rates; the median new home price in the United States increased 22 percent since the start of 2020 and existing home prices increased 58 percent.

“Today … inflation and the rapid escalation of mortgage rates have resulted in a cooldown of the for-sale housing market. Every housing metric is indicating a softening, and builders are starting to recalibrate their business plans in the face of slowing demand. As the housing market resets, we should start to witness the true impact of the pandemic on home design, location preferences, amenities, and financial preferences.

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, pages 47–48

Rental Rates Cool Off for 2023

“Virtually all aspects of the housing market — both forsale and rental — have been decelerating. … apartment rents have continued to push ever higher, but the pace has been moderating in recent months. … And while multifamily vacancies are at their lowest level in four decades and rents continue to log new records every month, the rates of increase have been slowing and are expected to decelerate further, according to many experts interviewed. ‘Maybe you don’t see the 10 percent–plus rent growth in multifamily markets,’ says the head of one institutional investment advisory firm. ‘They should come back to more of a long-term historical average of 3 percent to 4 percent, and maybe offset some of the unaffordability in the country.’”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 6

A big factor that will determine where rents go in each market is inventory levels versus demand. Nationwide, multifamily construction is at a 50-year high, according to Redfin’s forecast, “which means hundreds of thousands of new rental units will be available next year.”

Housing Market Predictions 2023: A Post-Pandemic Sales Slump Will Push Prices Down For The First Time In A Decade — Redfin

AS THE REAL ESTATE MARKET IS NORMALIZING AFTER THE PAST TWO YEARS, IT’S NOT JUST HOME SALES THAT ARE SLOWING:

Mixed-Use Properties Continue to Grow

MIXED-USE DEVELOPMENT IS EXPANDING WITH A FLEXIBLE APPROACH TO LIVE/WORK/PLAY PROJECTS:

“Real estate continues to evolve to be more flexible and serviceoriented, and the trends toward developing mixed-use properties, repurposing assets, and repositioning portfolios are not going away. … the trend of mixed-use redevelopment and densification playing out in the mall arena is likely to expand to other property types. Said one acquisitions director, ‘We are actively looking for class B properties in class A locations where there is an opportunity to repurpose lifestyle, power, even grocery-anchored centers to mixed-use live/work/play projects.’”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, pages 68 and 104

Single-Family Rentals Are Still Attractive

DEMOGRAPHICS MAY BE CHANGING OF WHEN VARIOUS GENERATIONS START FAMILIES, BUT THE DEMAND FOR FAMILY-FRIENDLY HOUSING WILL INCREASE:

“Whereas prior generations had children while they were in their mid-20s, many millennials have deferred childbirth to their 30s, and some studies suggest that they are going to start families in larger numbers over the next several years. With a newborn or a toddler, these young families would typically prefer a house with a yard, and more space in general than they might have in an apartment. That is the key to the growth in demand that we expect for built-for-rent single-family homes. The demographics show that as the ‘bulge’ of millennials moves up in age over the next four to five years, demand for familyfriendly housing will increase.”

“Built-for-Rent” Single-Family Housing Forecast: Easing In 2023 and Booming In 2024/2025 — Forbes

Although the “nascent stage of the industry makes the future hard to determine,” here are a few things to consider regarding single-family home trends:

“Nearly half of all master-planned communities are planning a build-forrent section.

“Thirty-five percent of single-family renters with budgets of $1,000-plus per month rent by choice.

“Single-family renters with rent budgets of $1,000-plus per month prefer to rent for more flexibility, as well as for less maintenance and fewer financial responsibilities, than they would have as homeowners.

• “Renters of single-family homes can have private yards, no one living above or below them, pets, and garages — the primary features that motivate people to own.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, pages 49–50

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

THE ECONOMIC AND CULTURAL ARC OF RENTERS ARE SHIFTING UPWARD, WHICH INVITES A BLUR OF GENERATIONAL BEHAVIOR:

“What is different over the past several years has been a growth in discretionary rental households, also known as rent-bychoice households. According to Harvard’s Joint Center for Housing Studies (JCHS), the number of renters making at least $75,000 jumped by 48 percent over the decade ending just before the pandemic, to 11.3 million. With this increase, the share of renter households in this income group rose from 20 percent to 26 percent. Younger, older, and more economically, racially, and culturally diverse households together will bend the economic and cultural arc of rentership upward.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 39

Because of this shift, “[apartment] industry leaders now recognize a blurring of behavioral lines across generations. When it comes to housing type need or preference, generational cohorts — generation Z, millennials, generation X, and empty-nester baby boomers — act more like each other than not. ‘Our customer experience research shows it’s more appropriate to classify people by [buying pattern] behaviors than by generational cohorts,’ says the CEO of one of the nation’s top 20 privately held multifamily developers. ‘You’re going to find people in gen Z and millennials and even gen Xers that have very similar behavioral components and some of that is stage of life, but not all of it is.’”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 40

Once Amenities Are Now Table Stakes Scramble

THE CHANGING PATTERN OF CONSUMERS’ NEEDS AND PREFERENCES ARE DICTATING MUST-HAVES IN THEIR DECISION OF WHERE TO LIVE:

Certain amenities have become “non-negotiable standards as technologies improve.” Some of these table stakes amenities include:

The desire for indoor/outdoor living

Features and functionality for health and well-being

Home designs for a nimble work/life balance

Holistic home technology solutions, such as package delivery management, smart locks, privacy, security systems, and selfservice access to concierge

“‘Since COVID-19, we were able to pivot to a technology footprint for our business model that reduces reliance on people and improves the customer experience,’ said the CEO of a publicly traded, top-10-ranked multifamily apartment owner-developer. ‘So, it was an acceleration of what we’ve seen in other sectors to a self-service business model. The core of it is, “How do you interact with your customer?” and if that gets disrupted or the rules of the road change, “How quick can you adapt?”’”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 40

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:

“‘Regulation is something that should be top of mind for a lot of property owners. And we’re starting to see significantly more rent control laws being passed at the local and municipal levels. That does have trickle-down impacts to individual property owners.’ That warning comes from the head of advisory services for a real estate data analytics firm. As shelter costs increasingly strain household budgets, some state and local governments are resorting to regulation to address affordability.

“As of spring 2022, at least 17 states were considering some form of rent control legislation, according to National Multifamily Housing Council tracking. The states span all regions of the country and both political parties, demonstrating the breadth of frustration with rising rents. ... the volume and range of these proposals show just how widespread the concerns are, and some of these initiatives could be revived if rents do not cool soon.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 27

“Affordable housing program support of approximately 640,000 units nationwide is scheduled to expire over the next eight years. This is in addition to an estimated shortage of 7 million low-income units needed to meet demand. These expirations present a unique investment opportunity to maintain the affordable housing designation or to rehab and convert them to market-rate units. Affordable housing investment is particularly attractive because of strong and stable fundamentals, growing demand and access to more favorable lending terms, such as longer loan terms, higher loan-to-value ratios and longer amortization periods.”

U.S. Real Estate Market Outlook, Chapter 7, Multifamily — CRBE

Climate Change’s Growing Impact on Real Estate

THE STATE OF THE ENVIRONMENT WILL BECOME A GREATER DETERMINING FACTOR IN HOUSING DECISIONS:

“Climate change may alter the dynamics of where people want to live and invest. In addition to the discomfort and health risks of living in ever-hotter climates, energy costs rise with temperatures, as do the risks of power outages as more strain is placed on power grids. Extended drought conditions may limit new development because authorities may limit new hookups.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 24

“Rising disaster-insurance costs will also make extremely climate-risky areas even more expensive. Some Americans will be priced out of climate-risky areas like beachfront Florida and the hills of California because of ballooning insurance costs.” Redfin expects “disaster-insurance rates to continue rising next year (and beyond), rendering housing in some areas more expensive.”

Housing Market Predictions 2023: A PostPandemic Sales Slump Will Push Prices Down for the First Time In a Decade — Redfin

THE ECONOMIC STATE MAY GENERATE SOME CHANGES WITHIN THE HOUSING INDUSTRY, BUT THERE IS A POSITIVE OUTLOOK WHEN IT COMES TO SENIOR LIVING:

“Looking ahead, many reasons exist to be optimistic about the outlook for senior housing, but the path forward may be a bit bumpy due to the prevailing winds in the broader economy. Inventory will continue to expand, although at a reduced pace in the near term, which should act as a tailwind for occupancy improvement. And, while demand may also be affected by economic headwinds, the value proposition of senior housing— security, socialization, engagement, room and board, care coordination, and lifestyle—remains in place and ultimately should win the day by attracting new residents to senior housing properties. In addition, the movement of many operators to incorporate wellness programs into their offerings has the potential to be a significant competitive advantage as potential residents seek communities that hold promise to improve the quality and length of their lives.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 45

Senior Living Trends

Unretirement

TO MEET THE NEED OF SOCIAL ENGAGEMENT AND FINANCIAL SECURITY, SOME RETIREES CHOOSE TO ENTER THE WORKFORCE AGAIN:

“[A] May 2022 report from AARP, citing data from Indeed, found that 1.7 million Americans who retired a year earlier had returned to the workforce. Kim Chaplain, a specialist adviser for work at the UK’s Centre for Ageing Better, told the Guardian that the organization ‘suspects the rising cost of living is playing a role.’ … Others are returning in search of social interaction. ‘We have a real serious issue in this country of senior loneliness and depression. The pandemic really exacerbated that,’ Andrew Meadows, senior vice president at Ubiquity Retirement + Savings, told AARP. ‘Many seniors were forced to stay at home, and now they are thinking of entering the workforce again for social interactions.’”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, page 218

Sector Maturation

TO REACH A “YOUNGER OLD” DEMOGRAPHIC WITHIN SENIOR LIVING, RETIREMENT COMMUNITIES ARE KICKING UP THEIR AMENITY OFFERINGS:

“It is an exciting time in the senior living industry as the sector matures and product offerings become increasingly differentiated. Much like the hotel industry, with offerings from Motel 6 to the Ritz-Carlton, operators, developers, and capital providers are increasingly segmenting the senior housing market by both price point and service offerings. ‘Active adult’ offers amenitized rental housing for the ‘younger old’ cohort seeking community involvement, lifestyle, purpose, and connection. The ‘Forgotten Middle,’ a term coined by the National Investment Center for Seniors Housing & Care (NIC) in its 2019 seminal study that assessed and quantified the need for more affordable housing and care options for middle-income seniors, offers care and housing options for the value-minded older adult consumer. And ‘ultra-luxury retirement communities’ offer older adults high-end concierge lifestyle living options with wellness centers, five-star culinary options, entertainment, and A-list cultural events. And, of course, the traditional senior housing product remains, with a price point that falls between the two and offers a value proposition of security, socialization, engagement, room and board, care coordination, and lifestyle.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 42

Wellness Value Proposition

WHEN LOOKING FOR THE RIGHT RETIREMENT COMMUNITY TO CALL HOME, SENIORS WILL PRIORITIZE A PLACE THAT OFFERS WELLNESS PROGRAMS:

“Many operators increasingly recognize that senior housing provides an environment that can promote and support health and wellness, enticements to the baby boomers as they age and seek the aforementioned proverbial fountain of youth. Furthermore, the movement of many operators to incorporate wellness programs into their offerings has the ability to be a significant competitive advantage as potential residents seek communities that hold promise to improve the quality of their life through programs focused on the intellectual, physical, social, spiritual, vocational, emotional, and environmental dimensions of wellness as defined by the International Council on Active Aging.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 42

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 GUARANTEED HEALTHCARE IF EVER NEEDED:

“Simply stated, senior housing operators influence social determinants of health for hundreds of thousands of older Americans. Operators can help manage chronic illness and keep older adults healthy — they have 24/7 eyes on residents and can systematically monitor changes in conditions. Properly managed, this can result in fewer resident hospitalizations, reduce federal and state-level health care spending, and act as a catalyst for future business opportunities and collaborations. Further, thoughtful care intervention can provide support to the overall health care ecosystem through the support and creation of conscientious awareness and follow-through. And, once senior housing is fully recognized as part of the healthcare continuum, senior housing operators will be able to participate in the revenue streams associated with a capitated risk-sharing model of care.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 42

Tailwinds for Occupancy Recovery

“Two tailwinds support an ongoing occupancy recovery for senior housing. First, on the supply side, the number of senior housing units under construction in the second quarter of 2022 for the 31 NIC MAP Primary Markets was the fewest since 2015. And that pattern may remain in place — at least in the near term — because senior housing starts [to] continue to linger at moderate levels and remain well below their peaks seen in the 2016–2018 period. This is because rising prices for materials and [emerging trends in] inflation, labor shortages in the building trade industries, and the change in Fed policy of higher interest rates are collectively affecting plans for new development; many projects increasingly do not pencil out for reasonable returns.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 42–43

“Second, demand is also a tailwind for an ongoing improvement in occupancy. Indeed, demand, as measured by the change in occupied inventory or net absorption, was robust in the second quarter of 2022, increasing at its strongest pace ever recorded by NIC MAP Vision except for the post-pandemic boost in demand in the last half of 2021. Since the recovery began in the second quarter of 2021, 78 percent of the units placed back on the market have been reoccupied. As a result of these conditions, the occupancy rate for senior housing — where senior housing is defined as the combination of the majority independent living and assisted living properties — rose 0.9 percentage point during the second quarter of 2022 to 81.4 percent for the 31 NIC MAP Primary Markets. This marked the fifth consecutive quarter in which occupancy did not decline. At 81.4 percent in the second quarter, occupancy was 3.4 percentage points above its pandemic-related low of 78.0 percent recorded in the second quarter of 2021 but was 5.8 percentage points below its pre-pandemic level of 87.2 percent in the first quarter of 2020.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 43

SUPPLY AND DEMAND ARE THE DRIVING FACTORS WITHIN SENIOR LIVING OCCUPANCY:

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:

“[Labor] also is a key consideration, with an increasing number of operators citing labor shortages as a potential limiting constraint on growth. In the WMRE/NIC Investor Sentiment Survey conducted in June 2022, just under half of respondents (41 percent) reported that labor shortages have caused a reduction in the number of operating units/beds in their portfolios. This is presenting challenges for operators seeking to maintain census, much less grow and expand. … While good for employees, low jobless rates present challenges to employers who must staff their businesses. Surveys conducted by the NIC among C-suite operators of senior housing and care properties highlight strategies to combat labor shortages and include raising wages, offering flexible work hours, higher pay frequency, improving the work environment and culture, recruitment programs comparable with those used to market to new residents, and collaboration with educational institutions.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 44

Demographics Favor Senior Housing

THE POPULATION OF AGING ADULTS SEEKING HOUSING WILL POSITIVELY AFFECT THE GROWTH OF RETIREMENT COMMUNITIES:

“The demographics supporting senior housing cannot be denied, as the number and share of older adults continue to grow. For example, the number of persons 82 and older — often the age at which a person moves into senior housing — is growing at an accelerating pace. In 2022, there were 10.6 million Americans aged 82 and older; by 2026, this figure is projected to grow to 12.3 million, and by 2030 to 14.8 million, according to the U.S. Census Bureau. Further, in the not-very-distant future, the ratio of adult children family caregivers (those aged 45 to 64) who are available to take care of aging parents (those over 80 years of age) will continue to shrink at a precipitous pace from 7:1 in 2015 to 6:1 in 2022 to 5:1 in 2026 to 4:1 in 2031 and to 3:1 in 2044.

“With fewer family members and spouses available for caregiving … congregate settings will indeed get a further boost in demand. In addition, the increasing segmentation and differentiation of senior housing in serving the vast numbers of seniors in the middle-income cohort will add a large demand pool for operators to serve, as will the movement of ‘younger old’ adults into the active adult segment. With an industry penetration rate of roughly 11 percent of U.S. households, the penetration rate does not need to increase dramatically for occupancy to rise to pre-pandemic levels.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land

Student Living Trends

Enrollment Woes + Development Slows

THE SLIGHT DECREASE IN ENROLLMENT AND ECONOMIC UNCERTAINTY POSE ISSUES FOR OWNERS AND DEVELOPERS:

“As pandemic-related restrictions eased and life seemed to settle more into normalcy, higher ed leaders held out hope a COVID19-era enrollment decline would rebound. That doesn’t appear to be the case. Enrollment fell by 1.1% in fall 2022 from the prior year, according to the National Student Clearinghouse Research Center. Institutions suffered across the board — community colleges, four-year public colleges and for-profits. Less-selective colleges and two-year institutions bore the brunt of these declines. … Skepticism of colleges’ value could continue to push down student counts. And the so-called birth dearth during the Great Recession is arriving for higher education, shrinking the contingent of high school graduates available to enroll in college — and meaning enrollment will likely continue to wane.”

7 Higher Education Trends to Watch in 2023 — Higher Ed Drive

“Economic uncertainty is also causing difficulties for developers. Financing will continue to prove difficult for 2024, 2025 and perhaps even 2026 deliveries,” said Timothy Bradley, principal of TSB Realty. He also stated: “Overall new purpose-built student housing supply levels will settle in the 25,000 beds over the next few years, or about 60 percent of the typical annual volume. This level of supply cannot keep up with demand due to enrollment growth, shifting consumer demands and aging existing inventory, which is a positive indicator for continued outperformance in top-tier markets as well as future cap rate stability, if not compression.”

What Experts Expect for Student Housing in 2023 — MultiHousing News

More College Consolidations on the Horizon

CURRENT ECONOMIC STRESSORS PLACE EDUCATIONAL INSTITUTIONS ON THE WATCHLIST FOR POSSIBLE CLOSINGS AND/OR CONSOLIDATIONS:

“Experts in higher ed finance predicted the financial stresses early in the pandemic would lead to some low-enrollment colleges’ demise, only for federal pandemic support to somewhat shield institutions. However, no new federal aid appears to be coming down the pipeline. Some institutions had already turned to austerity measures, as the pool of traditional-age college students starts to run dry. … As colleges continue to feel the pandemic’s lingering financial pinch on top of demographic trends placing downward pressure on the sizes of their student bodies,” more institutions will likely see closings and/or consolidations.

7 Higher Education Trends to Watch in 2023 — Higher Ed Drive

Community Spaces Are a Must + Catering to Gen Z

STUDENT HOUSING THAT OFFERS A STRONG SENSE OF COMMUNITY WILL BE ATTRACTIVE TO PROSPECTS:

Beth Pinder, COO of Campus Advantage, stated: “A dynamic sense of community is critical to success. Events and activities such as community gardens, study buddy programs, giving back to the community through volunteering and creating events and groups that impact change and drive the future of the environment are important to today’s students — a shift from typical pool parties, barbecues and pizza parties.”

What Experts Expect for Student Housing in 2023 — Multi-Housing News

“Designers and architects are also working with the needs of Gen Z in mind. To cater to the youngest generation … ‘spaces are shifting toward shared experiences,’ which means more outdoor spaces, natural light, common areas for recreation and studying, as well as green spaces.”

What Experts Expect for Student Housing in 2023 — Multi-Housing News

Privacy Please

STUDENTS ARE SEEKING MORE PRIVACY IN THEIR SEARCH FOR HOUSING — A PRE-PANDEMIC TREND THAT HAS GAINED MOMENTUM:

There is an increase in “more single-occupancy units in offcampus projects … and an increase in single-occupancy units for new on-campus developments as campuses look to provide more options to address students’ changing needs, as well as provide options for upper-division students to remain on-campus.”

Today’s Development Trends: Living ‘Large’ in Student Housing — Student Housing Business

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 mix of unit types and price points is necessary in today’s environment because the price of just about everything has gone up — a trend higher education has been leading for quite a while. This sometimes means students — and operators — have to prioritize, no matter how big their desires are. [Because the] ‘cost of a college education is skyrocketing, and very few students have the financial ability to live in a building with luxury/hotel amenities, coffee shops, lazy rivers and the gaming walls,’ [said Ned Williams, senior vice president of Michaels Student Living asserts.] ‘We’re still seeing a push for more ‘affordable luxury,’ so infill, high-rise, pedestrian-to-campus projects appeal to a broader resident rent profile.’”

Today’s Development Trends: Living ‘Large’ in Student Housing — Student Housing Business10

Going Green

APPEALING TO A GENERATION THAT VALUES ENVIRONMENTAL CONCERNS WILL OPT FOR SUSTAINABLE HOUSING:

“Today’s students are typically concerned about the environment and their impact on the world we live in. Sustainability is a way of life for many students, and higher education institutions are taking this into account when designing student housing, incorporating green features and aiming to attain Leadership in Energy and Environmental Design (LEED) platinum status in their new construction and renovation projects.”

10 Student Housing Trends for 2023 — Fierce Education

“Gen Z’s well-known interest in sustainability is also generating changes in the industry. DLR Group Global Higher Education Leader & Senior Principal Stu

Rothenberger shared that educational institutions focused on implementing sustainable practices campus-wide will be well-positioned to serve the students of tomorrow. DLR Group is working on a carbon-neutral project for Swarthmore College in Swarthmore, Pa. The school’s new dining hall and community commons is slated to serve as a hub of activity and a cornerstone for social gathering on campus, all while highlighting reduced energy consumption and carbon footprint.”

What Experts Expect for Student Housing in 2023 — Multi-Housing News

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-ed housing policies have been changing for years, with intensifying campaigns for gender inclusivity leading to more mixed gender housing instead of male or female dorms. Many colleges and universities are now providing co-ed housing but still guarantee student privacy by offering gender-specific showers, for example.”

10 Student Housing Trends for 2023 — Fierce Education

“Gender-inclusive housing allows students of all genders to live together in a shared space. This option originated as a response to the increasing awareness that sex and gender are not the same. While sex is traditionally defined in biological terms, gender is a social and cultural construct that involves how someone identifies and feels. … Gender-inclusive housing is more than just co-ed dorms. It is an important step in creating an inclusive and safe environment on campus for all students and embracing gender diversity. … Policies regarding genderinclusive housing vary depending on the college or university. Some colleges have broad policies allowing any student to opt into gender-inclusive housing. Others cater explicitly to transgender and gender non-conforming students.”

The Importance of Gender-Inclusive Housing — Best Colleges

Restaurant Shops

THE COMBINATION OF DINING AND RETAIL IS ATTRACTING CONSUMERS LOOKING FOR IN-PERSON ENGAGEMENT AGAIN POST-PANDEMIC:

“With the ongoing pandemic changing how people shop and engage with brands, and the growing popularity of ecommerce, consumers now need more to be drawn to in-person shopping experiences. Factors like convenience and enhanced experience, often associated with online shopping, now need to be replicated in brick and mortar spaces in order for consumers to prioritize going.

“While it’s not uncommon for retail stores to contain restaurants, the reverse — dining establishments that also operate as stores — are becoming more popular. These intimate spaces create more modern versions of the one-stop experiences that large retailers have made so popular.”

2023 Trend Report — Trend Hunter, page 86

Membership Dining vs. Elite Clubstaurants

CONSUMERS ARE OPTING TO EMBRACE INNOVATIVE DINING EXPERIENCES AT ALL LEVELS:

“The average modern consumer is much more preoccupied with accessibility now than they are with exclusivity. North American consumers’ changing values surrounding personal status have forced brands to prioritize the same — with new business models that run on accessibility and innovation instead of exclusion.

… Now, these establishments offer everything from affordable memberships to dining access through NFT purchases.”

2023 Trend Report — Trend Hunter, page 229

In contrast to the accessibility trend for the average modern consumer, the fine dining sphere is offering a new tier of elite eating experiences for the upper echelons: one that prioritizes membership and exclusivity, and caters to the crypto elite.

“Private members’ clubs are being hybridized with restaurants, offering highly personalized concierge service and top-quality food in ‘behind the paywall’ restaurants only open to members.”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, page 104

Meta-travel

THE HOSPITALITY SECTOR IS TAKING ADVANTAGE OF THE METAVERSE TO EXPLORE HOW IT CAN BOOST THE INDUSTRY WHEN IT COMES TO TRAVEL:

“Hospitality brands are stepping in to act as home bases and guides for a rising class of metatourists. Joshua Senior, cofounder of Leven and director at Branco Capital, predicts that ‘as the metaverse evolves from a sci-fi concept into a reality, every industry disrupted by the digital era will feel its impact. We believe the potential for creative hospitality brands is limitless.’”

The Future 100: Trends and Change to Watch in 2023 — Wunderman Thompson Intelligence, page 66

Supercommuters

A POST-PANDEMIC SOCIETY IS NOW EXPERIENCING A GREATER DEMAND FOR IN-OFFICE WORK MANDATES, WHICH AFFECTS HOW EMPLOYEES CHOOSE TO COMMUTE:

“A new breed of commuter is emerging — one who spends the week working in the city and the weekends at home in the suburbs. ... As work conditions continue to evolve, supercommuters are embracing long-term commutes and subscribed hotel stays in order to maintain a comfortable distance from city life while showing up for in-office duties.”

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

Green Is a Responsibility

CONSUMERS WHO TEND TO GRAVITATE TOWARD A MORE MODERN HOSPITALITY APPROACH WILL NOT SETTLE FOR GREENWASHING:

The trend to spot for this year is that hospitality operators will incorporate more sustainable practices to cater to a consumer demand of prioritizing green efforts. According to the Booking.com Sustainable Travel Report 2022, “72% of global travelers intend to stay in a sustainable property at least once in the coming year.”

Sustainable Travel Report 2022 — Booking.com

“Hoteliers have no choice but to satisfy contemporary guests who are sensitive to social responsibility and committed to sustainability. The CCS Insights Predictions report on sustainability predicts that by 2025, a new green certification will be displayed by websites using low-energy design and code, indicating to guests what brands genuinely commit to their sustainability goals. … environmental sustainability is forecasted to be a strategic imperative for businesses in 2023. Being a part of this green revolution is not a marketing trick anymore, but a responsibility for hotels.

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

Holistic Hospitality, Health, and Well-Being

SECTORS WITHIN THE HOSPITALITY INDUSTRY ARE CAPITALIZING ON WELLNESS AND HOW THAT APPEALS TO CONSUMERS:

“Preventative medicine and self-care are undisputedly trending right now. The wellness industry is transforming into a booming trillion-dollar market and hospitality venues are well positioned to take a large piece of the pie, especially those with existing spa facilities. In addition to the usual beauty and relaxation spa offering, there is rapidly growing demand for health diagnostic technology and bespoke treatment plans delivered by experts who conduct personal or group sessions to develop vitality, healing, stress management, emotional balance, mindfulness and better sleep.”

2023 Top Hospitality Industry Trends — Hospitality Net

Hyper-Personalization

HOTEL, TRAVEL, AND RESTAURANT OPERATORS ARE LEARNING MORE ABOUT THEIR CONSUMERS AS A MEANS TO CREATE MORE PERSONALIZED EXPERIENCES:

“Today’s guests have grown to expect to be recognized and treated as individuals, one study revealed that 71% of buyers expect personalized interactions. The problem for most businesses is that they’re still personalizing at segment level and customer expectation has moved far beyond that in 2023, towards hyper-personalization.

“Hospitality businesses can implement hyper-personalization by using technological platforms such as CRM and CEM which use big data to create highly customized one-to-one interactions between the guest and the host at scale. Hotel, travel providers and restaurants are able to draw on data to utilize insights into customers past browsing or buying habits, enabling hotels to tailor their offers and promotions, and automatically provide services the individual is searching for.

“Hotel operations more generally are increasingly shaped by the use of management systems to monitor and optimize revenues, customer relationships, property, channels and reputation. Not to mention the rising importance of integrated messaging, predictive analytics, customer profiling and middleware, which seeks to connect any disparate systems. Even if [your] establishment has some technical limitations, the front of house team can go the extra mile to personally greet guests in the offline world.”

2023 Top Hospitality Industry Trends — Hospitality Net