Community growth within apartment complexes is the trend to watch in 2020. Complexes are being designed to make renters feel less like renters and more like homeowners.
Eighty-eight percent of millennials, the largest renting generation, live in major metro areas where space is at a premium and homeownership is prohibitively expensive. By making apartments feel more like permanent options, apartment managers increase retention, justify higher rent, and improve the overall value of their property.
Semi-detached but still space-efficient options—like condos and townhouses—are a big part of serving this demand.
Also, onsite luxury amenities that allow these individuals to travel less while enjoying more convenience are turning multifamily properties into self-sustaining communities.
Managers can expand amenities and foster a sense of community to help cater to the multifamily housing trends expected in 2020 by making apartments feel more like homes that are part of a thriving community.
Apartment Renting Will Feel More like Ownership
The market for semi-attached townhouses and other single-family rentals experienced a 30% growth over the past three years. While the reason can typically be attributed to cost-effectiveness, there are many other reasons that consumers opt for flexible renting over inflexible homeownership.
One of the biggest reasons is the inability to qualify for home loans.
While only one in ten mortgage applications is turned down, that’s less because of easier lending and more because consumers aren’t even trying in the first place. Many renters face high debt-to-income ratios due to student loans, credit cards, and other obligations that will make them ineligible.
As such, these individuals look to high-end rentals to meet their living needs so they can enjoy the feel of homeownership without the responsibility.
This is where more detached units—like condos and townhouses—gain popularity. It’s also driving a need for more luxury in-unit amenities like energy-efficient appliances, hardwood floors, marble countertops, track lighting, and other features that elevate the apartment and make it feel less temporary.
Communities Will Center Around Dwellings
Often, the success mantra for apartments of the past has been all about location, but how today’s business owners get that prime area is changing. Instead of competing for spots in high-demand areas, they create their own. That’s also true for apartment developers. In the past, they’d seek out prime spots near popular attractions, like restaurants, bars, business districts, and other entertainment venues. Now, these savvy developers are building communities within their apartment complexes.
Smart managers can add on game-changing amenities like on-site fitness centers, dog parks, clubhouses, and coffee shops to give residents a sense of true community while also enjoying increased revenue.
Everything from wellness centers and nail salons to movie theaters can be central to the location of an apartment with the right amenity upgrades and partnerships.
Preparing for Multi-Family Competition in Southern California
By the end of 2019, it’s estimated that more than 16,000 units will be added to the multi-family market in the greater Los Angeles area. That’s significantly higher than the standard market average of 5,500 per year.
As competition for renters will increase, it will be necessary to find ways to stand out. However, focusing on affordability isn’t the only way to manage this. Instead, apartment managers should look to the demographic with the most disposable income: young millennials.
Almost one-third of millennials prefer to socialize at home, as going out can be expensive and time-consuming.
Landlords can appeal to these individuals by having on-site events which allow them to socialize from the comfort of their own homes. Events like after-work happy hours in the clubhouse and pool parties on the weekends can create a fun, exciting atmosphere that draws in younger renters even during highly competitive markets.
How to Take Advantage of 2020’s Multifamily Housing Trends
Apartment managers who want to take advantage of the top multifamily housing trends for 2020 need to focus on creating a permanent home feel in a rental-based property. Creating a sense of privacy through the development of semi-detached structures and also rich community amenities for socializing can help these managers enjoy all the benefits.
To communicate a welcoming community to potential renters, apartment managers should consider setting up events that get their residents communicating.
Outdoor movie nights and events for residents establish the complex as a community. Managers should consider how they can use their amenities to create events and build a rapport that will drive long-term tenancy.
Managers must work with contractors who are experts in multifamily housing trends and community development. These experts will be able to view multifamily housing with a critical eye and choose the best features to create a sense of community while offering convenience to residents. By offering options that feel permanent, managers create long-term relationships with residents to make your apartment their forever home.