7 Multifamily trends and how developers can take advantage of them
The multifamily apartment sector keeps changing. Factors such as youth, dorm rooms, COVID, and other things are sparking this makeover? Here are some of the trends.
Multifamily Trend #1: Strong Demand
After a sluggish 2020, the market looks strong;
· Rents in multifamily housing markets have climbed 10% in 65 of the 150 largest metropolitan areas.
· The occupancy rate went up to 96.9% in July 2021, surpassing the previous record of 96.5% in 2000.
· Vacancy rates are up in all major markets
· Asking rents are up!
It’s a good time to be an owner or manager of a multifamily property. Many restrictions that impacted renters during the Pandemic have been lifted, unemployment is down and more people than ever are looking to rent a multifamily space.
Multifamily Trend #2: Student Housing Packed With Promise
Picture a college classroom packed with students. The vacancy rate for student housing is 2.6%. According to a survey conducted by ReGenerations among 18-to-24-year-olds:
College students love dorm life. Why not, it teaches them to throw parties, live with others and to learn how to cook meals, and live independently. It’s Freedom and that’s hard to take away!!!
Multifamily Trend #3: Remote-Work
Working from home went from being a luxury to a health precaution, and now to a popular thing.
For multifamily homeowners, it means upgrading your wireless service for residents. A recent survey among rental residents found that 92% would be interested in high-speed Internet access as an apartment feature. Aside from wireless upgrades, creating co-working space for business is also important to renters.
Multifamily Trend #4: Upgrading Office Technology
Today, more managers of multifamily properties are upgrading on high-tech tools, and the latest office innovations for efficient workflows, i.e. digital whiteboards, WebX phone, and video-conference systems, as well as video/audio editing workstations.
Multifamily Trend #5: Younger Renters
Younger generations prefer to rent. One of the many reasons is the high price of buying a home, which reduces their options. The hefty price of homes and other things like the 20% down payment, maintenance, repairs, insurance, property taxes, home association fees has convinced many Millenials that buying a home is simply beyond their reach.
Multifamily Trend #6: Pet Owners As Renters
Nowadays, more people own a dog or a cat. In fact, one-third of rental housing prospects own a pet, according to Michelson Found Animals Foundation and the Human-Animal Bond Research Institute.
For multifamily property owners that means you should create a pet-friendly policy. There are many ways you can go about doing this. For example, eliminate fees and deposits and rely on a solid security deposit to cover any damages caused by the resident or pet. Create dog-walking areas on your property. Install vinyl flooring instead of carpeting. It’s pet-friendly. It repels liquids and won’t retain odors caused by pet “accidents”. Work with pet owners to make the space feel comfortable.
Multifamily Trend #7: Skilled Labor Shortage
Skilled labor is harder to find than Bigfoot. We’re talking about plumbers, ironworkers, drywall hangers, welders, insulation installers, electricians, and more. It’s hard to build in certain markets.
For a developer, you may want to build apprentice programs to train people to become plumbers, ironworkers, drywall hangers, welders, and other trades.
Keeping Up With The Changes
You might not be able to tap into each one, but you can make small changes as time goes by. Do what will benefit your residents by raising their satisfaction level, as well as raising your revenue to the property. Contact our team at www.BHIbuilds.com