According to CBRE, the multifamily market is healthy and thriving thanks to a balanced supply and demand. The sector’s net absorption from Q2 2018 to Q1 2019 totaled 285,000 units, higher than that of the 266,700 units developed during this 4-quarter period.
There are many reasons why demand for multifamily housing continues to grow, including the nation’s sustained economic expansion, preferences for urban living and flexibility, and the cost of single-family home ownership. As the supply and demand of apartments continues to increase, developers and owners must determine methods for differentiating themselves amongst other facilities, with amenities being used as a prime tactic to do so.
We searched the Internet for October’s top blogs and articles about multifamily amenity trends and then narrowed it down to our top 5. Read ahead to discover our top picks.
Written by Kim Slowey, Construction Dive
This blog dives into the Multifamily Design + Construction’s 2019 Multifamily Amenities report and highlights how many of the 113 different styles of multifamily amenities landlords are including in their projects. According to a survey within the report, the top four amenities in multifamily projects are dog parks, children’s playgrounds, bicycle storage, and washers and dryers. Features that were not as popular amongst respondents are voice-activated systems and pet grooming and overnight services. The report also notes that even in amenity-packed apartments there is no guarantee which ones will be most attractive to tenants.
Written by Mariah Brown, GlobeSt.
Asset managers are using community-oriented amenities to attract tenants, which is driving the intensity of today’s amenity war. This article discusses the ongoing amenity war and argues that a sense of community created by co-working spaces, movie nights, and general multipurpose areas is the most important “amenity” that can be provided to tenants. Spaces where residents are encouraged to make friends and outdoor areas are amongst the top contenders for winning this war.
Written by Cindy Wick, National Real Estate Investor
This article emphasizes the importance for property managers to ensure that they are catering to the demands of Millennial renters in order to drive leasing activity. Convenient, service-based amenities and hospitality-like services, are highlighted as two of the top attributes Millennial renters are seeking from their apartment communities. The article also touches on how Millennials’ digital upbringing directly impacts these lifestyle preferences.
Written by Amber Felton, Investor Management Services
This blog highlights the present and future of living by introducing the concept of smart apartments and their role in attracting and retaining tenants. Tenants’ attraction to tech-enabled amenities and connectivity has driven the demand for smart apartments, with 86% of Millennials will to pay more for these than traditional units. Additionally, 65% of Baby Boomers are reportedly willing to pay more for smart apartments with updated tech features. The top smart apartment amenities can also be found in this blog.
Written by Laura Albert, DLA+
This article highlights the top multifamily amenities by category (outdoor, indoor, and recreational) with supporting stats. According to the article, top amenities include an outdoor lounge area, in-unit washers and dryers, installed pool tables, and jogging and walking paths. Additionally, the article mentions how the growth of the shared economy has impacted the desirability of shared amenity spaces.
Read Micro-Apartments: How These Small Multifamily Spaces Are Impacting CRE for more multifamily trends.