The Hottest Multifamily Trends The Hottest Multifamily Trends

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The Hottest Multifamily Trends

There are changes happening across the multifamily arena that is drawing interest from both tenants and property owners and managers alike. The changes are reshaping the way multifamily apartments are designed as well as the scope of amenities being offered.
This helps draw a better caliber of tenant to the multifamily housing market, and present property managers and owners with an opportunity to offer high-demand services that result in increased rents. Here are some of the hottest trends and how they could apply to different types of multifamily properties.

What Renters Are Looking For

According to a survey conducted by Entrata, a multifamily technology company, price is the number one attribute (74%), followed by the neighborhood where the apartment is located. They also place a higher value on having utilities included in their rent, which ranked higher than the square footage of the apartment. Specific amenities came in at 31%.
When renters were asked about their “top of mind” desires, the top three desires were in-unit washers and dryers, which was followed by a gym/spa, and the third was a swimming pool. 
Entrata surveyed renters on what amenities they would be willing to pay extra for each month, and the responses were (in order of preference): smart technology, in-unit laundry, online rent payments, secure access, a gym or fitness center and smart-home features.

Living Closer to Downtown

One of the biggest trends in multifamily properties is that tenants are willing to give up square footage in order to live closer to the downtown or the center city areas. This trend is fueled by Millennials who tend to not spend a lot of time in their apartments. Part of this draw is opting for an urban lifestyle that doesn’t require long commutes. It’s happening not only in large, established cities but in smaller communities as well.
The truth is that renting is the only way that many people can afford living in the city’s central core. Housing prices have skyrocketed, particularly in cities like San Francisco, New York, Boston and Chicago. It appears that high-density multifamily housing offers people an opportunity to live in these desirable areas at prices that are more affordable. 

Tenants Want More Technology

The technical revolution has permeated just about every area of the country and every level of society. That includes renters, who now are asking for smart technology when looking at apartments. They want free WiFi and Internet TV access. According to Building Design & Construction, they also are willing to pay for smart home technology — over 75% were willing to pay additional rent for security cameras, keyless entry systems and smart thermostats like Nest.

Technology is also being used to give tenants more control over their energy use. In addition to Nest smart thermostats that enable renters to set heat and cooling temperatures remotely, other features include LED lighting, electric-car charging stations, floor-to-ceiling windows and more. Older buildings are being renovated with additional insulation and energy-efficient HVAC and mechanical systems along with other energy and money-saving options. All of these technology improvements help both tenants and building operators lower their operational costs.

The More Amenities, the Better

Tenants are seeking out buildings that offer a variety of amenities, and the more amenities that are offered, the better. What used to be an exercise room with nothing more than several pieces of fitness equipment is now converted into a social gathering area for tenants. It’s part of the trend of young urban socials that want opportunities to meet and socialize with the people that live in their buildings. Having a space for classes like yoga and other physical fitness programs is an added bonus.

One amenity that is often sought out but is not currently in widespread use is in-apartment washers and dryers. These in-apartment laundry units are in high demand in many markets, but they do take up space and they require a large financial expenditure for equipment and plumbing. Costs can be recouped over time by charging a premium for having washer and dryer in unit.

Depending on the geographic area where the apartments are located, pools ranked high in renter demand. These areas including hot climates, where air conditioning also ranked high. 

Many apartments offered pet-friendly amenities Pet amenities include dog parks and pet washing stations where pet owners can wash their dogs once they’re finished romping through the mud.

There is also a big demand for bike racks and bike storage facilities. Most renters don’t want to give up any valuable square footage to have a bike sitting in view, but welcome the opportunity to keep their bikes safely stored and easily accessible just minutes away.

Amenities aren’t limited to individual units — they’re expanding to the outdoor property areas as well. Nicely appointed community areas are springing up outdoors. This includes rooftop gardens and areas for relaxing with friends. Other additions include outdoor kitchen areas with room for tables and chairs that are designed for the exclusive use of tenants.

Other Market Trends to Consider

In addition to the hottest home trends in the multifamily arena, you should also consider other market trends that could potentially impact investments in multifamily properties. It’s important to look at these additional trends so you can understand the type of renters your properties may encounter.

The demographics of typical renters have changed, and you can thank Millennials for that. Millennials are simply not purchasing homes as early as prior generations did, which means that they’ll stay in the rental market longer. However, it’s not only Millennials who are changing the rental base.

Seniors aged 55 and older are also a growing group of renters. They’ve become empty nesters, have sold their homes and are now entering the rental market. They’re doing it in large numbers, according to the National Multifamily Housing Council they’re accounting for more than 30% of renters. Demand for rental units will also come from the increased immigration entering the U.S.

Summary
This look at the hottest home trends in the multifamily arena shows that renters are asking for more; more amenities, more technology and more control over the way they live. They want luxury and in many cases they are willing to pay extra to get the things they want. Baby Boomer Seniors are now selling their homes and renting since it's more affordable in the long run. This is good news for property owners as long as they’re able to deliver the type of amenities that their tenants are looking for.

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Revival Property Group
"Real Estate Solutions At Your Convenience"

There are changes happening across the multifamily arena that is drawing interest from both tenants and property owners and managers alike. The changes are reshaping the way multifamily apartments are designed as well as the scope of amenities being offered.
This helps draw a better caliber of tenant to the multifamily housing market, and present property managers and owners with an opportunity to offer high-demand services that result in increased rents. Here are some of the hottest trends and how they could apply to different types of multifamily properties.

What Renters Are Looking For

According to a survey conducted by Entrata, a multifamily technology company, price is the number one attribute (74%), followed by the neighborhood where the apartment is located. They also place a higher value on having utilities included in their rent, which ranked higher than the square footage of the apartment. Specific amenities came in at 31%.
When renters were asked about their “top of mind” desires, the top three desires were in-unit washers and dryers, which was followed by a gym/spa, and the third was a swimming pool. 
Entrata surveyed renters on what amenities they would be willing to pay extra for each month, and the responses were (in order of preference): smart technology, in-unit laundry, online rent payments, secure access, a gym or fitness center and smart-home features.

Living Closer to Downtown

One of the biggest trends in multifamily properties is that tenants are willing to give up square footage in order to live closer to the downtown or the center city areas. This trend is fueled by Millennials who tend to not spend a lot of time in their apartments. Part of this draw is opting for an urban lifestyle that doesn’t require long commutes. It’s happening not only in large, established cities but in smaller communities as well.
The truth is that renting is the only way that many people can afford living in the city’s central core. Housing prices have skyrocketed, particularly in cities like San Francisco, New York, Boston and Chicago. It appears that high-density multifamily housing offers people an opportunity to live in these desirable areas at prices that are more affordable. 

Tenants Want More Technology

The technical revolution has permeated just about every area of the country and every level of society. That includes renters, who now are asking for smart technology when looking at apartments. They want free WiFi and Internet TV access. According to Building Design & Construction, they also are willing to pay for smart home technology — over 75% were willing to pay additional rent for security cameras, keyless entry systems and smart thermostats like Nest.

Technology is also being used to give tenants more control over their energy use. In addition to Nest smart thermostats that enable renters to set heat and cooling temperatures remotely, other features include LED lighting, electric-car charging stations, floor-to-ceiling windows and more. Older buildings are being renovated with additional insulation and energy-efficient HVAC and mechanical systems along with other energy and money-saving options. All of these technology improvements help both tenants and building operators lower their operational costs.

The More Amenities, the Better

Tenants are seeking out buildings that offer a variety of amenities, and the more amenities that are offered, the better. What used to be an exercise room with nothing more than several pieces of fitness equipment is now converted into a social gathering area for tenants. It’s part of the trend of young urban socials that want opportunities to meet and socialize with the people that live in their buildings. Having a space for classes like yoga and other physical fitness programs is an added bonus.

One amenity that is often sought out but is not currently in widespread use is in-apartment washers and dryers. These in-apartment laundry units are in high demand in many markets, but they do take up space and they require a large financial expenditure for equipment and plumbing. Costs can be recouped over time by charging a premium for having washer and dryer in unit.

Depending on the geographic area where the apartments are located, pools ranked high in renter demand. These areas including hot climates, where air conditioning also ranked high. 

Many apartments offered pet-friendly amenities Pet amenities include dog parks and pet washing stations where pet owners can wash their dogs once they’re finished romping through the mud.

There is also a big demand for bike racks and bike storage facilities. Most renters don’t want to give up any valuable square footage to have a bike sitting in view, but welcome the opportunity to keep their bikes safely stored and easily accessible just minutes away.

Amenities aren’t limited to individual units — they’re expanding to the outdoor property areas as well. Nicely appointed community areas are springing up outdoors. This includes rooftop gardens and areas for relaxing with friends. Other additions include outdoor kitchen areas with room for tables and chairs that are designed for the exclusive use of tenants.

Other Market Trends to Consider

In addition to the hottest home trends in the multifamily arena, you should also consider other market trends that could potentially impact investments in multifamily properties. It’s important to look at these additional trends so you can understand the type of renters your properties may encounter.

The demographics of typical renters have changed, and you can thank Millennials for that. Millennials are simply not purchasing homes as early as prior generations did, which means that they’ll stay in the rental market longer. However, it’s not only Millennials who are changing the rental base.

Seniors aged 55 and older are also a growing group of renters. They’ve become empty nesters, have sold their homes and are now entering the rental market. They’re doing it in large numbers, according to the National Multifamily Housing Council they’re accounting for more than 30% of renters. Demand for rental units will also come from the increased immigration entering the U.S.

Summary
This look at the hottest home trends in the multifamily arena shows that renters are asking for more; more amenities, more technology and more control over the way they live. They want luxury and in many cases they are willing to pay extra to get the things they want. Baby Boomer Seniors are now selling their homes and renting since it's more affordable in the long run. This is good news for property owners as long as they’re able to deliver the type of amenities that their tenants are looking for.

Follow us on Facebook and Instagram!
&
Subscribe to our YouTube Channel!
Revival Property Group
"Real Estate Solutions At Your Convenience"

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