Multifamily 2020 Outlook

As a property manager, it is important to stay on top of trends in the rental marketplace. Responding to shifts in demand will not only help you bring in residents but will also aid you in resident retention. To that end, this article will take a look at the most common apartment trends, such as the growing need for an apartment package delivery system.
Multifamily Industry Growth Cooling a Bit in 2020
For the last few years, the multifamily sector has been in a continuous state of growth. In fact, the last decade brought the development of 2.34 million new apartments.¹
With the start of the new year and a new decade, multifamily continues to be favorably positioned for growth. However, analysts expect some cooling in 2020 due to new supply outpacing demand: this year, apartment demand is projected at 240,000 units, approximately 20 percent less than 2019, yet multifamily completions are predicted to total 280,000 units, which is on par with 2019.²
New Demographics
The changing face of multifamily residents will impact the areas where demand is stronger. A growing number of “renters by choice” – individuals making more than $75,000 per year, will increase demand for luxury apartments, as will a growing trend in empty-nesters leaving the suburbs for urban apartment living. This will add pressure to multifamily properties to add more amenities that fit the needs of new resident groups.
The Amenity War Continues
In response to changing resident demographics and an updated list of “must have’s”, multifamily developers will be turning to amenity innovation to stay competitive. In this ever-changing world where innovation and technology are continuously pushing the bar higher for a more personalized customer experience, residents now have totally different expectations for what’s in their living spaces. Instead of luxury amenities used occasionally, like hot yoga rooms, resort-style pools, or mega clubhouses; residents instead expect service-oriented amenities that enable them to easily integrate work, family time and free time.
Residents simply want and expect their living environment to be as on-demand as the rest of their lives. That is why parcel lockers, like those offered by Parcel Pending, will continue to be in high demand in the multifamily industry this year. Parcel lockers make the retrieval of packages quick and convenient.
Parcel Pending’s package management solution was created to ensure simple, secure delivery and retrieval of any online order. Our smart lockers offer several benefits meant to reduce the hassle and inconvenience of receiving a package:

• Smart – Infrared scanners detect the packages in each locker.
• Secure – 24/7 cloud-based video surveillance comes standard.
• Cool – Refrigerated lockers keep temperature-sensitive items cool.
• Courier Agnostic – Works with all major couriers.
• Convenient – Fits practically any sized package.
• Mobile-Friendly – Delivery notifications sent to your phone.

For multifamily properties, the benefits of parcel lockers also include:

• Increased resident satisfaction and renewals, providing them with the peace of mind that their items are safe and can be retrieved whenever they feel like doing so.
• Reduced operational costs, eliminating hours of time property managers would otherwise spend on handling packages.

Despite some “cooling” in demand for this year, analysts expect the market to be strong enough to endure and remain stable for another prosperous year in the multifamily sector.
Sources:

1. Sarac F. RentCafe Blog. Apartment Construction in 2019 Marks Second Year of Slowing Trend, with DFW Metro Surpassing New York in New Completions. (2019) https://www.rentcafe.com/blog/rental-market/apartment-construction-2019/
2. CBRE. Multifamily 2020 U.S. Real Estate Market Outlook. https://www.cbre.us/research-and-reports/2020-US-Real-Estate-Market-Outlook-Multifamily