With a limited supply of land for new development in many markets, differentiating the “need to have” from the “nice to have” is critically important for multifamily developers. Is the onsite dog park going to improve occupancy rates or is a spacious playground area the key to luring residents? Would a dedicated space for rideshare pickup move the needle or would onsite bike and scooter sharing services be more appealing? The 2020 Apartment Resident Preferences Report from the National Multifamily Housing Council and Kingsley Associates has the answers.
Commuting Convenience
When asked to identify the top three most important factors in his or her lease decision, 36% of survey respondents ranked proximity to work/office as number one. However, as technology has made telework increasingly common, home is increasingly where the office is for many apartment residents. Forty-two percent of respondents noted they work from home occasionally, with nearly a third (31%) noting they are doing so several times a month. More than half (55%) of those who say they telecommute also say they would be interested in an on-site business center on their telework days, although 22% of those noted that their current communities did not offer such an amenity.
Park and/or Ride
While 60% of residents are using rideshare services at least once a month, and 17% upwards of five times per month, this modern convenience has not replaced the need to keep a vehicle on site. More than half of respondents (53%) noted they keep one vehicle on site, while an additional 40% keep two or more vehicles onsite. Only 7% of respondents indicated they do not keep a vehicle at their community, which is hardly surprising given 83% of residents noted driving was their typical commuting method.
When it comes to renter preference for parking options, those who have cars report that a covered surface parking lot ranked tops (41%) followed closely by a controlled access parking garage (39%). Yet, 28% candidly admitted that, “I don’t really care as long as I have on-site parking.”
Community Perks
Swimming pools, fitness centers and common area barbeque grills top the list of lifestyle amenities that apartment residents are looking for. Rooftop space is also in demand, with 59% of respondents indicating they were interested in or would not rent without it.
Smart Home Experience
Today’s apartment residents are increasingly looking for a smart home experience. In fact, interest in features like video doorbells, smart thermostats, smart locks and smart lighting have grown between 10% and 15% since the study was last conducted in 2017. Here is a look at some of the more popular smart features, which include those who say they are interested in those features, as well as those who say they would not rent without them:
- 67% of survey respondents say they desire smart locks;
- 72% say they are interested in smart lighting;
- 77% say smart thermostats are important;
- 59% of survey respondents are interested in smart/dynamic glass;
- 58% of respondents indicate that biometric-controlled apartment access, such as those using finger scan technology or facial recognition, is of interest; and
- 51% say they’d like to have an internet-enabled fridge in their kitchen.
While there is widespread interest in most smart home technology, some residents have reservations around new smart technology. For example, a quarter of respondents said they weren’t interested or wouldn’t rent with virtual assistants such as Amazon’s Alexa or Google Home. Similarly, 18% express a lack of interest or comfort around biometric access.
Sidewalk to Sofa Connectivity
However, connectivity isn’t just about powering the smart home. High speed internet access is one of the most coveted apartment features, with 92% of respondents saying they were interested—with more than half of those indicating they would not rent without it. Moreover, 64% of respondents are getting in-home entertainment from a streaming service, and 35% of apartment residents have between five and nine Internet connected devices in their home.
Package Storage
Package storage is a chronic challenge for multifamily communities everywhere, particularly as the number of individuals shopping online has risen and more goods and services are available for on-demand delivery.
When asked what acceptable package delivery options, 72% of apartment residents opted for on-site, 24/7, self-service pick-up, while 48% were interested in having packages dropped at their door. Among the self-service package pick-up options, package lockers reigned supreme with 76% of residents preferring that option over a package room.
As for package delivery volume, 55% of apartment residents report receiving three or more packages per month. As for the contents of these packages, 64% of survey respondents say they never receive perishable items requiring refrigeration; this compares to the 9% that receive perishable packages several times per month. Bulky and oversized packages continue to be a challenge as residents order furniture like mattresses, sofas and rugs for their apartments.
As developers scout land and hatch plans for the latest and greatest multifamily communities, understanding the needs and desires of future residents is key. Now more than ever, changing resident preferences are directly impacting the physical shape of the communities we’ll need to build for future residents.
