The multi-family market has certainly evolved over the last several years. From the types of amenities renters demand, to an influx of new single family build to rent communities. Not to mention the changing renter demographic. While millennials make up one of the largest rental cohorts, the age 55+ Baby Boomers are selling their homes and opting for a more convenient lifestyle.
According to Forbes, in the last decade, the multifamily market has experienced hyper growth. Even during the pandemic, 2020 saw a 50% increase in multifamily units, compared to that of 2019. Rents in multifamily housing markets have continued to climb. Yardi Matrix reported in February that year over year rent growth increased 15.4% and occupancy rates of 96.9%, surpassing the previous record of 96.5% in 2000.
Today’s renters are demanding more and different amenities. This includes everything from storage areas or lockers for packages, trash valet services, community dog parks and smart fitness equipment, among others. Renters continue to require amenities that bring ease to their lives, saving them time and money. The plus side is that community-wide amenities garner higher rents. With current inflationary building costs, adding amenities with relatively low implementation costs is helping to make the numbers work and get deals across the finish line.
Bob Ritter
Director of Business Development
The Douglas Company
