The multifamily real estate market is ever changing. With increased growth in jobs in the tech industry, new expectations from the current demographic, and the growing need for more commute-friendly housing, the desires of renters are shifting.
Rapid growth in key cities with a rising tech industry is pushing the need for more rentals. Cities like Seattle, Dallas, Boston, Austin and the Bay Area are seeing a staggering influx of people moving to these urban centers of industry. As inventory in urban areas become more scarce and housing prices increase, the surrounding metropolitan areas and suburbs are also seeing an increase in demand in rentals. Consequently, people need to broaden their search for available and affordable housing.
Rent vs. Own
Renting over owning is trending with millennials, as well as those over 55 because it is more affordable, flexible, and maintenance-free. Furthermore, it offers a more connected and convenient lifestyle near to community amenities, restaurants, and entertainment.
With the rise in urban housing prices, micro-apartments are becoming more popular with singles and couples who are looking for cheaper housing in downtown areas. Micro-apartments are the latest efficiency apartment, usually between 200 and 400 square feet. It is a one-room space that includes areas for eating, sitting, sleeping, a kitchenette and bathroom, and limited storage.
Employment and Transportation
Employment is driving where people live and how they commute. The increase in workers moving closer to their downtown area jobs is promoting transit-oriented development. This type of development combines business, residential, and leisure space in a pedestrian-friendly community.
Telecommuting and alternative commute options, such as Uber, is on the rise. This is causing a decreasing need for parking in apartment communities.
Renters are seeking high-quality amenities, and are willing to pay for them. On-site or nearby off-site amenities include common-area wifi, full-service fitness centers, convenience stores, working spaces, dining, and retail shopping.
Smart-home technology is growing and anticipated to start being integrated into apartment buildings. Property owners can use this technology to manage their buildings through the cloud-based Internet of Things (IoT) devices.
Some apartment communities are also trying out automated package locker systems for residents to securely receive their packages.
Trends in the multifamily housing market will continue to evolve as renters seek housing options that include lifestyle-integrated communities.