Herd Mentality

Before we talk about herd mentality, let’s get one thing straight:

The best in any field—business, sports, even war—don’t follow the herd. They zag. They’re curious, bold, innovative. They think independently. They don’t ask “What’s everyone else doing?”

They ask, “What should we be doing?”

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So, what is herd mentality?

It’s the tendency of people in a group to think and behave the same way. To conform. To go with the flow. To make decisions because “that’s what others are doing.”

Sound familiar?

Because in multifamily—it’s everywhere. Operations. Suppliers. Capital markets.
It’s the industry’s default setting.

Why?
Because the industry is risk-averse. Because there’s lots of insecurity. Because playing it safe and following the herd has worked—for a long time.

But here’s the problem: It’s not working anymore.

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The market has changed. You know the variables:

• Overvaluations in 2022

• Floating rate debt

• Oversupply in key markets

• Higher vacancies

• Rent growth that’s stalled out

• A tough labor market

• Insurance chaos

• Ever-tightening regulations

• Expenses that won’t stop climbing

Just to name a few...

And yet—what’s the herd doing? Touting AI like a magic wand. Flashy marketing tools. Centralizing like it’s a silver bullet. Buzzwords, trends, decks, and demos.

The herd is noisy.

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Here’s the alternative: Be curious. Be real.

Ask questions that matter:

• Where is the value?

• Where are we actually inefficient?

• Where impacts the bottom-line the most?

• What are we tolerating because “that’s how it’s always been”?

Don’t chase what the system is selling. Look for what makes sense and is valuable. Use your own eyes. Your own gut. Your own numbers.

And at the very least, stop and ask:

• What do I believe?

• What is happening in the market right now?

• What should I be focused on that no one else is?

Don’t give yourself bologna answers.
The herd is already doing that.

You? You’re here to lead and Zag

See you next week. Stay sharp. Stay different.
—Moshe

“Whenever you find yourself on the side of the majority, it is time to pause and reflect.” — Mark Twain