Reports reveal that the housing market faces challenges that could thwart additional growth this year. Consequently, buyers should expect increased prices given the comparatively few homes on the market.
In terms of permits, there was a decline of building permits in December. Bear in mind that while those for single-family homes increased, apartment permits declined.
In North Texas, apartment occupancy and leasing are at record levels, though analysts anticipate few projects this year. Analysts attribute the decline to increasing costs and difficulty in finding desirable sites.
Furthermore, the D-FW area is expected to see a considerable drop in multifamily starts. Generally, however analysts expect multifamily housing construction to increase through 2017. Here’s a list of multifamily housing trends to expect in 2017.
Multifamily Housing Trends
Technology
Renters are increasingly expecting their apartment complex to offer fiber optics and high-speed internet in common areas. Consequently, building owners are upgrading their properties by providing Wi-Fi in common areas while including features such as smart thermostats and customizable entertainment.
This way, tenants can design their preferred technology environment. Furthermore, the industry is gradually shifting towards giving tenants increased command over their environs-from HVAC systems to entry doors.
Some developers have even installed cloud-connected devices in complexes. These devices permit tenants to regulate and monitor their heating, cooling, and lighting. However, building owners are finding it difficult to handle the subsequent wave of innovations since technology can change so fast.
For instance, while an increasing number of tenants might desire Internet TV, few owners are eager to remove their buildings’ cords from satellite or cable delivery.
Sustainability
Sustainability is gradually becoming an industry standard. As a result, numerous owners are offering energy-efficient complexes, featuring solar panels and charging stations for electric vehicles.
You’ll also find that tenants in some buildings are expected to sign “green” leases, which reveal their agreement to adopt sustainable practices such as recycling and using public transportation nearby.
Eco-friendly apartments set rentals apart from other properties while encouraging renters to rent for an extended period. Furthermore, upgrades such as rooftop panels and energy-efficient windows come with tax credits.
In Boston, you’ll discover some property owners have set up in-wall hydration systems for dispensing purified water. In this case, each tenant receives a water bottle to decrease the need for disposing plastic bottles.
Amenities
Property owners have discovered that the quality of amenities plays a big role in the clientele it draws and the rent it can yield. Consequently, property developers are expanding common areas and designing them to meet the needs of tenants who wish to work there or gather socially.
Therefore, you’ll find common areas equipped with the necessary technology to facilitate live-work interactions. Furthermore, iCafes, USB ports, and other Web-access features have become common practice.
Property owners are also including durable carpeting and furniture to accommodate greater usage. These days, you’ll find common spaces, particularly in luxury buildings, resembling resorts and hotels in their feel, look, and the services offered.
For instance, some apartments offer cooking classes led by chef educators. Other amenities that are available in multifamily dwellings include dry cleaning, office space within lofts, and private elevators. You’ll also discover that terraces and rooftop decks have become must-haves for high and mid-rise buildings.
Final Thoughts
Over the past years, the multifamily market has gained popularity, resulting in the increase of projects. Consequently, investors are seeking opportunities to buy multifamily properties.
While experts anticipate a growth in this market, consumers should also expect hiked rents. Therefore, it’s important you conduct research if you plan to invest in this market.
For more information on apartment construction trends, contact us at Apartment Agents or leave a comment.