Now is a prime time to invest in multifamily real estate. With supply down and mortgage rates high, more people are seeking the affordability and amenities that come with multifamily housing options.
From creative work spaces to health-conscious design, this generation of renters has been shaped by recent events to expect a specific set of amenities. Here, we break down the most popular amenities on renters’ wish lists for 2023.
Multifamily Real Estate in the Post-Covid Era
The pandemic forced the world to adapt to a new kind of normal, which challenged the way we approach work and life respectively. Having to work and live in the same space for an extended time also forced us to be more creative with adapting our homes to accommodate all of our daily activities, while simultaneously creating a distinct boundary needed to maintain our work-life balance.
Now that some workers are deciding to continue to work remotely, there is a pressing need for multifamily developments that offer amenities that provide creative work-from-home comforts.
Not only has the pandemic shifted our perspective on how we work, it has also amplified a sense of urgency in knowing how healthy our home environment is. Air filtration systems, safe building materials, and access to sunlight and exercise facilities are increasingly important to renters when looking for the ideal apartment.
I’ll Tell You What I Want, What I Really, Really Want
Determining what amenities are the most essential to include in a multifamily project are very dependent on who the renters are. For example, a development for seniors is not going to demand the same amenities that millennial and Gen Z renters require, because their needs and lifestyle are vastly different. Additionally, factors like income and location will heavily influence what renters are looking for.
Despite these juxtaposing realities, there are some common themes among renters when searching for their ideal rental.
Creative Work/Living Spaces
In 2022, approximately 1 in 4 employed people worked remotely from home and 16% of U.S. companies were fully remote. With such numbers of workers continuing to work remotely, amenities like common workspaces, secure WiFi, and coffee bars are very attractive to these renters.
While there is no crystal ball telling us what the work environment will look like in the years ahead, creating versatile spaces that can accommodate a variety of needs is smart business.
Events That Encourage Community
Experiencing a sense of community and connection is a notable factor when it comes to retention. When a person feels loyal to their community they are less likely to shop around for another rental, which is the ultimate goal for multifamily property managers and investors.
The best way to foster a strong community for residents is hosting regular resident events and having an established form of communication, such as a newsletter and/or online group to share information about events.
Some event ideas may include:
- Barbecues or potlucks where residents can interact in an informal, social setting.
- Informational workshops or classes with local professionals and businesses.
- Yoga lessons.
- Community service projects.
- Friendly competitions – such as a cornhole tourney or chili cookoff – with fun prizes.
Health Conscious Design and Air Purification
With the pandemic barely in the rearview mirror, housing that boasts air purification systems and sanitary communal spaces are a major plus. Employing these amenities will go a long way in providing tenants with peace of mind.
In addition to pathogens, air purifiers may also reduce:
- Pet dander
Mental health is another factor to take into account when designing a multifamily project. From natural sunlight to calming colors and green spaces, intentionally designing spaces that promote positive mental health will elevate how tenants feel about their rental situation.
According to the Humane Society of the United States, 72% of renters are pet owners. These renters are looking for pet-friendly rentals that offer their pets some of the creature comforts that increase quality of life wellbeing.
Specifically, dog owners want to see places that offer safe outdoor spaces for pets to sniff around. Dog grooming stations, access to parks, and walking services are prime amenities for dog lovers, and they are sure to keep pet owning tenants from seeking another housing option.
In today’s tech-driven world, bad WiFi will not bode well for tenant satisfaction. And that is just the very basic tech amenity renters now expect.
In addition to high speed internet access, today’s renters are looking for digital communication and paperless transactions, as well as smart home tech add-ons. Some of these add-ons might include smart keys – which allow them to streamline everything through their smartphone – and smart thermostats, which make temperature control more convenient.
While this list may not include every item on a given renter’s wishlist –and some items may not be realistic for every multifamily project– it does provide some insight into the modern amenities we may see in our ever-adapting world.
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