Some would argue technology makes multifamily management easier.
Automation handles leasing.
Document creation and signing.
Marketing.
Collections.
Smart thermostats reduce energy waste.
AI is slowly optimizing maintenance.
Suffice it to say, everything should cost less.
Except it doesn’t.
This is Jevons Paradox in action.
When efficiency improves, demand doesn’t go down—it skyrockets.
Lower operating costs don’t mean savings; they mean expansion. I
nstead of managing one property better; firms acquire more properties.
Instead of reducing expenses, they reinvest.
The result?
More complexity, more management, more technology, more spending.
Rents don’t drop because costs fall.
They rise because value increases.
Residents expect concierge-style service, instant maintenance responses, and seamless digital experiences.
More efficiency fuels higher expectations, not savings.
Staffing doesn’t shrink, either.
Not yet, at least.
I think the day is coming.
But I digress.
Automation replaces low-level tasks but demands higher-skilled team members to manage systems, analyze data, and maintain service levels.
The paradox creates a cycle: efficiency reduces workload, which increases capacity, which expands operations, which creates new workload.
The takeaway?
Efficiency isn’t a cost-cutter.
It’s a growth engine.
Ignore the paradox, and you’ll be caught off guard.
Embrace it, and you’ll scale smarter.
“Efficiency doesn’t save money—it creates opportunity. Just make sure you’re the one capturing it.” – Mike Brewer