{"id":33780,"date":"2024-01-24T09:00:13","date_gmt":"2024-01-24T09:00:13","guid":{"rendered":"https:\/\/www.parcelpending.com\/?p=33780"},"modified":"2024-03-28T22:18:07","modified_gmt":"2024-03-28T22:18:07","slug":"multifamily-housing-predictions-for-2024","status":"publish","type":"post","link":"https:\/\/www.parcelpending.com\/en-us\/blog\/multifamily-housing-predictions-for-2024\/","title":{"rendered":"Multifamily Housing Predictions for 2024"},"content":{"rendered":"

The new year is the perfect time to assess where the market is and, more importantly, where the market is heading. Below is our list of multifamily housing predictions for 2024.<\/p>\n

State of the Market: A Surplus of Rental Units<\/strong><\/h2>\n

Between 2021 and 2022, rental rates for new leases surged more than 20% and vacancy rates hovered around 6%.1<\/sup> Now, the picture is much different. December 2023 closed the year with monthly rents declining 1.1% and an increasing supply of rental properties thanks to new construction.2<\/sup> In fact, almost 440,000 multifamily units were completed last year, and it\u2019s expected that another 671,000 will hit the market this year.3<\/sup> The net result of this shift is that the battle to attract and retain residents is on.<\/p>\n

Leverage Amenities Appropriate to Your Demographic<\/strong><\/h2>\n

As you compete for residents, ensuring your amenities match your target market demographics is critical. For example, a community with numerous Millennials working from home will have different needs than a multifamily community for seniors. Seniors are inclined to favor a building with more robust security features. And, as Elie Rieder, CEO of Suffern, N.Y.-based Castle Lanterra Properties, discovered, her senior residents wanted communal activities rescheduled to better meet their lifestyle needs.4<\/sup> Millennials and Gen-Zers, on the other hand, like amenities that make life easier, including shared workplaces and well-appointed fitness centers.<\/p>\n

Decisions should also be based on residents\u2019 income. A community with lower or moderate rents will serve different needs than one positioned as luxury housing. Another crucial factor is the location of the property. Offering designated parking spaces may entice residents in neighborhoods with sparse parking.<\/p>\n

Highly Used Amenities = Best Amenities<\/strong><\/h2>\n

Although a putting green sounds impressive, amenities that serve the largest percentage of residents with the most frequency tend to have the most significant impact on resident retention. These new \u201cstandard amenities\u201d are essential to residents\u2019 overall positive experience and daily needs and are no longer optional. High-speed broadband internet, on-site (or in-unit) laundry facilities, and package management solutions are now considered standard amenities.<\/p>\n

Secure Package Management is Key<\/strong><\/h2>\n

The value that residents place on secure, on-demand package management solutions \u2013 particularly lockers \u2013 cannot be understated. According to a recent National Apartment Association announcement, residents now rank \u201csecure package receiving options\u201d as their most important amenity.5<\/sup> And, after ranking third in a 2022 NBRI study of apartment residents, parcel lockers jumped in 2023 to the second most crucial amenity<\/a> \u2013 just after secure parking. Respondents to this year\u2019s NBRI survey cited security, accessibility, and speed as their top reasons for ranking lockers so highly.<\/p>\n

Reliable Wi-Fi All the Time<\/strong><\/h2>\n

Every resident needs access to the internet but, according to Parks Associates, of the more than 30% of Americans who live in apartments and other multifamily housing, 50% say they have network problems.6<\/sup> Furthermore, setting up service with neighborhood internet providers can be costly, time-consuming, and difficult for homeowners to maintain their own equipment. Providing managed Internet service is turning out to be a top way to attract residents; 9 out of 10 residents won\u2019t even consider a property if the service isn\u2019t reliable.<\/p>\n

Embracing Smart Tech <\/strong><\/h2>\n