Multifamily Housing Predictions for 2025

2025 is poised to be a year of transition for multifamily residents. The different generations are easing into the next stages of their lives – moving away from home for the first time, settling down, or downsizing as they become empty nesters. This comes as economic headwinds are reshaping housing choices, pushing many would-be homeowners toward the rental market.

Regardless of the reason, this convergence of populations interested in renting will make for shifting expectations regarding the multifamily community experience. We’ll explore the factors affecting the resident population in 2025 and what this means for your community as we move into the new year.

Affordability Pushes More Households Toward Renting

A perfect storm of persistent inflation, soaring interest rates, and critically low housing inventory pushed many would-be homeowners toward the rental market in 2024. While 58% of recent renters still dream of owning a home, that figure has dropped from 64% in 2023.¹ This has caused the rental market to experience unprecedented growth, with the resident population expanding 1.9% to a record 45.2 million — three times faster than homeowner household growth, per a Redfin report.²

The shifting landscape is reflected in demographics, with the median resident age climbing from 36 in 2000 to 40 in 2023.³ The National Association of Realtors reported this year that the median age of first-time buyers was 38, up from 31 in 2014.⁴

Regardless of the renter’s age, budget remains paramount: according to Zillow, 95% of residents prioritize staying within their initial financial parameters, underscoring the economic pressures driving housing decisions.⁵ This makes creating a community experience, one that effectively articulates value, the most effective way to attract and retain residents in 2025.

Amenities Remain a Key Competitive Advantage

The rental market is experiencing a renaissance of resident satisfaction, according to the NMHC and Grace Hill 2024 Renter Preferences Survey.⁶ With 85% of residents expressing joy in their communities, the data tells a story of transformed expectations. As Sarah Yaussi from NMHC articulates, the modern resident — whether by choice or circumstance — demands more than just a living space; they seek a value-rich, amenity-laden environment that resonates with their lifestyle and aspirations.⁷ Sam Tenenbaum of Cushman & Wakefield, a real estate services firm, explains that residents don’t want to give up amenities to get 30% less house.⁸

The Need for Pet-Friendly Policies & Amenities

Pet ownership is surging. Whereas 46% of residents reported owning a pet in 2019, by 2023, a whopping 59% had a furry friend.⁹ That statistic translates into more residents having a pet than a plant or a child.

Recruiting and retaining pet-owning residents is critical. The pet filter is the top search modifier on Zillow, and 60% of residents report that their property’s pet policy is a crucial reason for renewing their lease. Further, 44% of potential residents passed on a property due to its unfavorable pet policy.¹⁰

Amenities that delight pet owners include dog washing stations, grooming facilities, dog parks, pet concierge services, and virtual keys for dog walkers and pet sitters.

Sustainability as an Emerging Preference for Younger Residents

As Generation Z emerges into adulthood, lifestyle preferences continue to shift. The Pew Research Center defines Gen Z as those born after 1997, with the oldest members now reaching 23, stepping into a world markedly different from their millennial predecessors. Millennials, currently the main contributor to multifamily housing numbers, span birth years from 1981 to 1996.¹¹ Both of these generations are demanding sustainability as a top priority. “Sustainability is the new amenities race,” explains Noel Carson, Director of Marketing and Brand Design for The Bozzuto Group.¹² Examples of eco-friendly amenities include composting, recycling, electric vehicle charging, renewable energy, and Energy Star appliances.

“Amenities that actually save renters money can reduce turnover with hopeful home-savers,” states Zillow Senior Economist Orphe Divounguy.¹³ Amenities such as high-efficiency toilets and LED lighting promote a greener environment while reducing utility bills.

Remember that sustainability and wellness often go hand in hand. Residents are looking for airtight windows that allow more light while lowering costs and boosting mood. By the same token, they seek easy access to public transportation and walking paths.

Smart Package Management: An Amenity That Delivers MORE

Smart lockers have emerged as a versatile and essential amenity that caters to modern residents’ diverse and dynamic needs. Driven by the continued growth of e-commerce, which is projected to reach $8.1 trillion by 2026, residents face unprecedented package delivery and security challenges.¹⁴

Smart package management and storage solutions offer more than just package protection; they provide a seamless, 24/7 self-service experience that addresses the rising concerns of package theft and delivery complexity. From critical personal items like medications and legal documents to everyday conveniences such as pet food and subscription boxes, smart lockers offer a reliable, accessible, and efficient method for residents to receive and retrieve their online deliveries with unparalleled convenience.

According to a 2024 National Business Research Institute survey of apartment residents, smart lockers have emerged as a top amenity (number two, just below secure parking), with a significant percentage (69%) emphasizing the importance of parcel security.¹⁵ Most importantly, lockers are a universal amenity, with almost 90% of residents taking advantage of them weekly and 73% receiving 1-3 weekly deliveries.

As the multifamily housing landscape continues to evolve, smart package management represents more than just a technological convenience — it’s a critical amenity that reflects the changing needs of modern residents.

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With e-commerce growth showing no signs of slowing and residents increasingly valuing convenience and security, smart lockers have become a strategic differentiator. By addressing the dual challenges of community/package security and on-demand accessibility, these innovative solutions meet the practical needs of today’s residents and signal a property’s commitment to adapting to the dynamic lifestyles of residents – residents who are increasingly prioritizing efficiency, technology, and seamless living experiences.

Ready to lock in a solution to help you deliver more for your residents in 2025? Contact a Parcel Pending sales representative today.

Sources:

1. Zillow. Rentals Consumer Housing Trends Report 2025. www.zillow.com. November 27, 2024. https://www.zillow.com/rental-manager/resources/your-guide-to-2025-zillow-rentals-consumer-housing-trends-report/
2. Katz, L. & Bokhari, S. Renter Nation: America’s Renter Population Is Growing Three Times Faster Than Its Homeowner Population Amid Rise In Homebuying Costs. www.redfin.com. August 2, 2024. https://www.redfin.com/news/renter-household-growth-2024/
3. Zillow. Rentals Consumer Housing Trends Report 2025. www.zillow.com. November 27, 2024. https://www.zillow.com/rental-manager/resources/your-guide-to-2025-zillow-rentals-consumer-housing-trends-report/
4. Brown, D. & Overberg, P. Buy the House First, Get Married Later: Couples’ New Math. www.wsj.com. November 23, 2024. https://www.wsj.com/personal-finance/unmarried-homeowners-mortgages-801ff086
5. Zillow. Rentals Consumer Housing Trends Report 2025. www.zillow.com. November 27, 2024. https://www.zillow.com/rental-manager/resources/your-guide-to-2025-zillow-rentals-consumer-housing-trends-report/
6. National Multifamily Housing Council. 2024 NMHC and Grace Hill Renter Preferences Survey Report. www.nmhc.org. November 7, 2023. https://www.nmhc.org/research-insight/research-report/nmhc-grace-hill-renter-preferences-survey-report/
7. Serlin, Christine. 5 Trends Shaping the Renter Landscape. www.multifamilyexecutive.com. March 4, 2024. https://www.multifamilyexecutive.com/property-management/apartment-trends/5-trends-shaping-the-renter-landscape_o
8. Sparber, Sami. Why some renters aren’t in a hurry to buy homes. www.axios.com. October 12, 2024. https://www.axios.com/2024/10/12/why-some-renters-arent-in-a-hurry-to-buy-homes
9. Brissey, Grant. 5 reasons to carefully consider pet policies in 2025. www.multifamilydive.com. November 18, 2024. https://www.multifamilydive.com/spons/5-reasons-to-carefully-consider-pet-policies-in-2025/732903/
10. Zillow. Rentals Consumer Housing Trends Report 2025. www.zillow.com. November 27, 2024. https://www.zillow.com/rental-manager/resources/your-guide-to-2025-zillow-rentals-consumer-housing-trends-report/
11. Dimock, Michael. Defining generations: Where Millennials end and Generation Z begins. www.pewresearch.org. January 17, 2019. https://www.pewresearch.org/short-reads/2019/01/17/where-millennials-end-and-generation-z-begins/
12. Kraus, Blake. For Gen Z, Sustainability Is the New Amenities Race. www.multifamilyexecutive.com. June 10, 2020. https://www.multifamilyexecutive.com/design-development/for-gen-z-sustainability-is-the-new-amenities-race_o
13.  Zillow. Rentals Consumer Housing Trends Report 2025. www.zillow.com. November 27, 2024. https://www.zillow.com/rental-manager/resources/your-guide-to-2025-zillow-rentals-consumer-housing-trends-report/
14. Snyder, Kristy. 35 E-Commerce Statistics of 2024. www.forbes.com. March 28, 2024. https://www.forbes.com/advisor/business/ecommerce-statistics/
15. Parcel Pending by Quadient. 2024 Resident Preferences Report. www.parcelpending.com. August 2, 2024. https://www.parcelpending.com/en-us/resources/2024-resident-preferences-report/