Various types of income-producing real estate exist, but multifamily tops everyone’s real estate investments list. This is because of better returns one can expect from this form of investment over the years.
But just as with any other aspect of the real estate industry, multifamily has been evolving over the last few years.
Now, apartment operators and owners are exploring new approaches and continuing tried and trusted methods to meet the demand of renters in the tight market.
From technology to amenities, the industry sees a significant shift. If you need to be made aware, continue reading to get proper insights.
Trends in multifamily property
High-tech amenities
In the current digital world with the constant connectivity and smartphones, the renters now expect the apartments to be plugged into all the tech.
The tech-savvy renters are now looking for high-tech apartments that can provide them with the best facilities possible.
From smart locks to well-connected kitchen appliances and intelligent tech integration throughout the property, there has been a significant shift in the trends in multifamily properties in 2024.
Further, as more and more renters opt for electric vehicles on-site, EV charging stations have become a must-have. It will help set you and your property apart from the competitors.
With the hybrid dominant work model, about 30% of the renters are reported as fully remote or working from home part of the week.
To support the renters’, need for connectivity, plus the demand for the renters to stream their favorite movies and shows after work, having a high-speed Internet connection has become a significant aspect. This makes an apartment hot and attractive for the renters.
Leasing efficiency
With a slowdown in rent growth and inflation, the need for efficiency in the leasing process has increased even more. It has now become a thing of urgency.
2024 will see a greater exploration of leasing centralization along with short rental search timelines.
The leasing industry will be able to perform better and more with less while still meeting the needs of the current residents and the future ones.
This underscores the need for practical tools and strategies to help hit the leasing goals without sacrificing the customer experience.
Greater visibility
The renters are now looking for increasing visibility in their next apartment home. From apartment-specific pictures to descriptions of the units and questions, unit-level details are now moving from pleasant to have to the essentials.
In the recent survey conducted by Apartments.com, about 99% of renters have mentioned they want to see unique specific information in the listings, which also goes to price.
With affordability being the top consideration, renters today expect to see pricing information displayed, including all the fees associated with the available unit and utilities.
Pickleball
As people are not shifting towards fitness, having fitness centers in the apartments can be an opportunity to shine. The paddle sport pickleball has taken the nation by storm.
It has swept the cities and the suburbs of the country well. It is a unique sport that combines the elements of badminton, tennis, and ping pong. This is attractive to players of all age groups.
It is important to note that Pickleball surpassed tennis in 2023, per the Apple Heart and Movement study data.
Pickleball courts have been growing, with over 44,000 places to play as of January 2023. So, the renters are now willing to pay more to access amenities like pickleball courts and other fitness areas.
The fastest-growing sport in the nation will also continue to see a significant increase in demand in 2024. The renters will now demand sports courts and outdoor spaces where they can continue with their fitness regimen.
As Pickleball requires less space than tennis, multifamily communities that can modify their tennis courts for Pickleball can accommodate more players at a time. This supports up to 4 pickleball courts in one tennis court.
Further, it will be an excellent attraction for the renters, and the owners will be able to increase the demand for the property and charge higher for it.
AI integration
The use of artificial intelligence in 2023 has yet to see any control. AI is changing commercial real estate sector the real estate.
Right from property management to keeping track of the renters, the management tools offer great convenience.
From community websites to resident communications and rent collection, AI assistance has become a significant trend. This has boosted efficiency and highlighted the future of property technology.
Wellness and sustainability
The renters are now increasingly seeking more healthier and greener lifestyles.
From medication spaces to cooperative gardens, the renters are now looking for apartment communities that prioritize environmental well-being and the well-being of the individuals.
The hot amenities for 24 will include bike lending programs, yoga studios, and more green space.
Further sustainability is also growing beyond expectation. About 60% of the respondents in a recent survey said that building and sustainability certification would positively impact their leasing decision.
At the same time, 62% indicated the same for healthy building certification. It is an excellent opportunity for the apartment communities to highlight the credentials and amenities like energy-efficient appliances, composting, recycling, and solar panels.
Developers, too, have been exploring a lot of sustainable approaches to multifamily. They are keeping an eye on repurposing existing buildings.
The boom in the office-to-multifamily conversion is also a multifamily office real estate trend for 2024.
Even on the aesthetic level, green is here to stay for 2024. From exteriors to staged apartments, renters seek properties that use eco-friendly materials and offer a more natural look, such as abundant plants, wood, etc.
Neighborhood connections
Beyond the community, apartment renters seek opportunities to plug into the local neighborhood. After social distancing and the lockdown during the pandemic, renters have increasingly prioritized meaningful community communication.
Walkability, proximity to retail, access to green spaces, and transit regime supreme offer significant advantages.
Renters want to know everything the neighborhood offers, from retail and shopping to dining and entertainment. Multifamily operators can easily change this trend by highlighting their neighborhood has all-through listings.
For instance, if a park is nearby, they can mention it or a shopping center, school, etc. For the existing residents, property managers must also consider organizing resident events that support the local community.
Volunteering at a local shelter and venturing out to the neighborhood for a skating party can significantly boost the property.
Better security
A significant concern about crime has increased nationwide. It is no surprise that renters now demand a higher level of security and safety.
Only after affordability, security, and safety were the demands of the renters while selecting an apartment. After all, why would it not be? Everyone wants to keep their family safe from any unexpected situations or happenings.
Here, the apartments can bring in technological solutions to meet security needs. It has seen a significant demand and popularity. There has been a massive surge from keyless smart locks to security systems alarms, biometric-based security Systems, etc.
There has been a 67% increase in demand for gadgets that help boost security. This highlights the low community crime rating and helps build a strong relationship with the local police.
Even taking simple measures like installing security cameras, maintaining fencing, expanding outdoor lighting, etc, can be great for improving the security of the residents.
This increased demand for security measures does not only pertain to the personal safety of the residents.
The multifamily industry has also seen a rise in the popularity of new approaches to mail protection. They are developing new things, from app-based package management to bright package storage rooms, to ensure the residents get the best experience.
Technology is here to stay and will change the industry over the coming years. However, it is essential that investors and renters open-heartedly incorporate technology in the industry to make the most of it.
Conclusion
Technology incorporation in buildings or making the required changes to them, considering the demands of the renters, can be expensive. Here, having the needed financing can make a huge difference.
If you are experiencing difficulty with the same, consider trusting Private Capital Investors. They have experts who will help get the financing you need to cover all the essential aspects of your project.
Whether it be starting the construction project, buying the land, or making necessary improvements in the property, the experts will be there to help get the best financing deals at the lowest interest rates possible.
