One of the most valuable ways for property owners and operators to stay competitive is to pay attention to multifamily trends. These can provide clues on what a multifamily residential property management team needs to do to stand out. Trends also reveal a few things residents may want in a place to call home.
A Yardi Matrix report states that December 2023 was the fifth month in a row that rent declined. It’s the worst rent performance since 2010. (This excludes 2020 as the pandemic year was highly unusual.) This is why property managers and owners need to understand the trends to find better ways to bring in revenue and capture as many of the residents as possible.
Despite rent declines across property segments, demand continues to be healthy. Factors impacting its good health include a strong job market, household formation, and rebounding immigration. Here are the top multifamily trends in 2024.
1. Demographic Changes
It’s not just the younger generations consisting of millennials and Generation Z who seek multifamily housing. Retirees and people in their golden years are looking to downsize and shed all the responsibilities that come with maintaining a home. Additionally, inflation has made it difficult to buy a single-family home.
What do the shifting demographics mean when it comes to housing? Property managers and owners need to offer a diversity of housing options. Young adults need affordable housing. Seniors want age-friendly activities, accessible living spaces, and amenities targeting the older population.
To save on costs and pay off college debts, many young people are moving back home with their families. These families want multigeneration-friendly homes. These need to consider accessibility and more bedrooms.
2. Technologies
Review the current technologies you have in place as well as any vendor contracts you have for these technologies. There may be opportunities for saving on costs by consolidating technology and finding cheaper solutions with more functionality. You may be able to combine your technologies under one vendor. The benefit of consolidating is to simplify management, save on costs, and reduce complexity.
A cohesive property management solution allows residents to pay their rent online. According to Zillow’s survey, more than half of renters pay online. Almost 70% want to do this. This speeds up the payment process and takes another thing off employees’ workload. An online payment system cuts out the slow tedious process of managing payments on paper. These advanced building management systems streamline operations. At the same time, they help improve resident satisfaction.
It’s possible that not everything can be combined under one umbrella. Your solutions may need more than one vendor. For example, some apps can combine a lot of property management tasks and activities including the website, payment system, cybersecurity, and communications. But they may not have physical security built in.
The rise of smart home technology has revolutionized the way people live, and multifamily housing is no exception. In 2024, the integration of smart technology will become more sophisticated. Residents will have a seamless and convenient living experience. Smart locks, thermostats, and lighting systems are becoming standard features, enhancing security and energy efficiency.
Artificial intelligence (AI) is booming. These tools will change how future residents navigate the property market. They’ll be able to take virtual tours and receive personalized property recommendations. These technologies, too, can streamline property management processes while boosting the resident experience.
Self-guided tours have become increasingly common in multifamily communities, offering benefits like improved leasing efficiency and reduced staffing costs. However, this unsupervised access for non-residents creates opportunities for potential criminal activities, with model units at risk due to valuable items like electronics and furnishings. Incorporating live video monitoring can significantly mitigate these risks by providing real-time surveillance and intervention capabilities.
Physical security is an essential function of the multifamily residential experience. ECAM can install and maintain video cameras or leverage existing camera systems, to enable remote video monitoring, allowing video operators to contact police and perform historical video reviews as an integrated centralized solution. Centralization can lower costs and increase efficiency.
3. Growth of Hybrid and Remote Working
The pandemic has shown that remote working can succeed. As a result, more and more companies are opting to compromise by implementing a hybrid work model. This is where people can work from home a few days a week and go into the office on the other days of the week.
CNN Business references a Fannie Mae study that has found 35% of respondents worked either 100% remotely or in a hybrid situation. That’s a big chunk. Therefore, property management needs to explore amenities that will attract remote and hybrid workers.
Multifamily properties offering coworking spaces can gain a competitive advantage. This allows residents to get out of their units into a more professional setting. Residents may want to hold meetings but not in their apartments or a noisy coffee shop.
A multifamily residential property could create coworking spaces with different-sized rooms. One option is to have a couple of larger conference rooms for video-hosting meetings. Then, create smaller rooms for one-on-one video calls and small meetings. This is your chance to bring outsiders into your property. They could be a future resident or know someone who is looking. If they have a great experience, they’ll tell others about it.
Remember that full-time remote workers have a choice of living wherever they want. If you create a coworking space and a remote working-friendly place, it’s an opportunity to attract residents who want a place that supports their remote working lifestyle. They value a high-quality network connection.
Those who work full-time in an office will appreciate a coworking space. Thanks to networks, the world has become a place for doing business globally. Hence, someone who works in an office may want to have a coworking space to work and meet outside of normal working hours. These spaces help residents keep their home and work environments separate.
4. Choosing Rentals over Home Ownership
The high mortgage rates have made buying a single-family home unattainable for many. They don’t want to be house poor. This means they’re investing all their money in their homes. They can’t go on vacation or do the things they enjoy. Those who are at the age when people traditionally buy a home are opting not to because it’s not affordable or they don’t want to maintain a home.
5. Sustainable and Green Living
Sustainability is no longer a buzzword. It’s now a fundamental aspect of modern living. The younger generations care more about social issues and choose businesses for their emphasis on sustainability. It’s not just the younger generations that are environmentally conscious. Some of the older generations are investing in companies with environmental, social, and governance (ESG) values and are focused on sustainability.
Construction has seen a lot of recent advances in building sustainable living spaces while working to reduce their carbon footprint. Property managers who prioritize sustainability and green building practices have a greater chance of attracting investors and residents.
From energy-efficient appliances to green roofs and solar panels, developers are taking steps to reduce the environmental impact of their properties. This not only attracts environmentally conscious tenants but also aligns with global efforts to create a more sustainable future.
6. Social connectivity and community engagement
Creating a sense of community within multifamily properties is a trend that continues to grow in importance. In 2024, developers are working to build spaces that foster social connectivity through the design of shared spaces, community events, and networking opportunities.
From rooftop gatherings to fitness classes and communal gardens, these initiatives aim to create a vibrant and interconnected community within the multifamily environment. Besides, these provide social media opportunities to draw attention to a multifamily property.
Residents will take selfies in their living space. When their friends and family see these posts, they may ask about the property and investigate becoming a resident. It’s a free promotion for the building. Property management teams that make the effort to create photo-worthy spaces increase their chances of showing up on social media.
7. Workforce Housing
The growing trend towards workforce housing is emerging as a solution to improve the housing supply and ensure affordability for essential workers. As cities expand and housing prices soar, the demand for affordable, quality housing has intensified. Workforce housing initiatives aim to bridge this gap by providing housing options that are both accessible and affordable to this critical segment of the population, ensuring they can live near their places of employment.
These projects not only bolster the local economy by stabilizing the workforce but also contribute to the diversity and vibrancy of communities. By integrating affordable units into new and existing developments, cities can create more inclusive neighborhoods. Additionally, such initiatives often leverage public-private partnerships, tax incentives, and zoning adjustments to encourage development without compromising quality.
Applying Multifamily Trends to Gain a Competitive Advantage
Before you make a move on any of these multifamily trends, be thoughtful and intentional. Avoid applying any of these trends for the sake of it. Do your research and ask questions. Any new initiative needs to fit the multifamily property strategy. It’s important to check to see if residents want whatever new initiative you decide to explore. Another factor is to review your marketing strategy to determine whether it has a place in it.
Don’t try to implement solutions for all these trends. That could fail because it may be too much and could make it difficult to make the solutions a reality. Target one or two trends that have a strong possibility. Work from there. If possible, do a small test before doing a full rollout.
By staying attuned to these multifamily trends, property owners and investors can position themselves at the forefront of the evolving real estate market, providing residents with the living experiences they crave in this dynamic era.
Interested in learning more about multifamily residential security technologies? Get the Complete Guide to Securing Your Multifamily Residential Building. To learn more, contact us.
Texas Private Security License Number: B14187
California Alarm Operator License Number: ACO7876
Florida Alarm System Contractor I License Number: EF20001598
Tennessee Alarm Contracting Company License Number: 2294
Virginia Private Security Services Business License Number: 11-19499
Alabama Electronic Security License # 002116
Canada TSBC License: LEL0200704
