Outlook: 2025

The coming year promises to be an exciting one for property managers ready to embrace new (and continued) challenges. With rapidly evolving technology and the growing need to attract the next generation of talent, property managers must stay agile, continuously learning to thrive in this dynamic environment. JPM spoke with industry and IREM leaders, who shared the key trends and issues that property managers should keep on their radar.

Tech adoption

Kimberly Sisney, CPM^®

On everyone’s mind is the continuing significance of technology, namely artificial intelligence (AI). Kimberly Sisney, CPM^®, chair of the IREM Affordable Housing Advisory Council and executive VP of asset operations at Full Circle Communities in Chicago, notes, “It’s been a struggle to stay fully staffed and to get people to work. So I think technology is something that I’ve been most excited about—just finding ways to use technology to supplement our human capital.”

2024 IREM Immediate Past President Renee Savage, CPM^®, CCIM, president of SavageCRE, Inc., in San Diego, agrees. “The impact of technology will be game changing for the industry. We’re typically slow to adopt technology, and I would say we’re not slow anymore. We’ve taken a step forward, and I believe in 2025 we are going to see a lot more acceptance and understanding of it.”

Attracting next-gen property managers

Recruiting and retaining next-gen talent grows in importance every year, and it can be a challenging task. IREM and property management companies are trying to reach current students to educate them about the industry and its career opportunities in property management in an effort to make it a career of choice—rather than a career that professionals “fall into.” Whether through career fairs or other efforts, reaching students with an interest in business or real estate can be an ideal way to attract the industry’s future managers.

Jonathan Lisnoff, CPM^®, ARM^®

“I’ve spent a lot of time enticing people into this career, and it’s all about bridging that gap and knowing what this generation cares about,” says Jonathan Lisnoff, CPM^®, ARM^®, chair of the IREM Next Gen Advisory Council and senior property manager for Huizenga Holdings, Inc., in West Palm Beach, Florida. Here are some of the motivating factors: 

• Technology. Attracting the next generation means offering the latest technology and allowing them to explore new tech. “AI is a huge driving factor right now,” says Lisnoff. “Companies are realizing that those AI systems are going to be run by this next generation of college students who are in school right now learning how to utilize those systems.”
• Meaningful, fulfilling work. “The next gen doesn’t want to work just to work; they want to make an impact,” says Savage. “It’s important to market our industry around our end result: the impact we make on our communities. Tell the stories about that.” Sisney says to highlight your company’s practices regarding sustainability, social responsibility, and community engagement, and be ready to modernize company culture.
• Career advancement. Millennials and Gen Z want immediate gratification. Talking to them about career growth and professional development, such as IREM certifications, helps them envision a clear career path to get ahead. Tell them how to get there and how long it’s going to take. Savage says that mentoring and coaching can be an important piece of this. 
• Work-life balance. Flexibility is key in reaching and retaining younger workers. “They’re going to want to work hard, do their job, and meet their deliverables, but how and where they do that will continue to require flexibility,” says Savage.

Affordable housing updates

Renee Savage, CPM^®, CCIM

A shortage of affordable housing continues in the U.S. “So many things affect affordable housing: governmental policies, technological innovation, advocacy and social movements, economic factors, environmental considerations and sustainability, and urbanization and shifting demographics,” says Sisney. “With population shifts, we ask: Where is the next hot market for affordable housing? Changes to any of these could affect the affordable housing landscape in 2025.” 

Sisney predicts that inflation will continue to negatively impact operating costs, specifically in labor and insurance, but more positively, she sees increased public and private partnerships driving development for affordable housing. “Those partnerships give the opportunity to develop affordable housing without having to rely primarily on the public sector.”

In Florida, Lisnoff is excited to see the continued impact of the Live Local Act, a workforce housing initiative that will increase affordable housing options for workers to live in the communities they serve. 

“The Act provided so much opportunity for buildings that would have never been constructed otherwise,” he says. “The spread of affordable housing really surprised me in 2024. We’re seeing a huge influx, and I think it will continue in 2025.” 

The new year will bring the final deadlines of HOTMA, legislation signed into law in 2016 “written to simplify qualifying, recertifying, and determining rents for the HUD and USDA affordable housing programs.” “I look forward to this being fully implemented and being on the other side of the transition,” Sisney says. 

International opportunities 

Property managers are seeing additional opportunities abroad as more countries embrace IREM and property management standards. One example is the United Arab Emirates, which has a growing IREM program.

“Their built environment is so new—it was just the desert in the 1970s—so they’re still creating best practices,” says Savage. “They’re still being newly exposed to different types of models and ways of doing things in real estate. I see incredible opportunities there.” 

Another country ripe for property management development is South Africa. “South Africa has such a need for professional property management, because they have an enormous amount of real estate that’s owned by the government,“ Savage says. “So there’s a lot of real estate there that has not been professionally managed over the years. There weren’t many individuals educated in property management, but IREM is really growing there and we have a chapter of great property managers there.”

More sustainable, cost-effective construction 

“Whether it’s using new building materials, modular construction, or 3D printing, there are so many options that could reduce construction time and costs,” Lisnoff says. 

He also predicts that the development of cognitive cities, such as NEOM’s “The Line” in Saudi Arabia, will make more headlines in 2025. “Cognitive cities are fully smart and capable cities using AI and big data to enhance efficiency and sustainability. These cities will rely on “constant interaction with their citizens through advanced information and communications technologies [ICT]” to support the automation of daily urban processes. “We’re going to learn more about these in 2025, and I bet we’ll see more of it by 2030,” Lisnoff predicts. 

Sisney adds that the use of new construction technologies, such as modular housing and 3D printing, could reduce costs and increase the speed of building affordable housing units, positively impacting affordable housing. 

Continued DEI priorities 

DEI initiatives will remain a workplace priority in 2025, bringing many of their familiar benefits, such as reducing bias and discrimination. “Having a diverse team, wherever you are and whatever population you’re serving, enhances the experience with the residents and fosters innovation and problem-solving,” Sisney states.

DEI will also continue to build brand reputation and respond to market demands. “People like doing business with companies that demonstrate that commitment to DEI, and many consumers prioritize working with organizations that value inclusivity,” says Sisney.

Since many companies’ initiatives were drafted a few years ago, it’s essential to review and adapt DEI policies to any changes in demographics for 2025 and beyond. “There are some properties that may not have needed a Spanish-speaking person, for example, because you didn’t have a Spanish-speaking population,” Sisney says. “But that need may have changed. Having that diversity and capability on your team means that you have assistance when you need it.”