Multifamily real estate investment firm Vive Funds says technology integration, sustainability and flexible leasing options are among the trends its experts are following in 2023.
Data from Flex shows that 38% of U.S. renters – almost 40 million people – live in an apartment complex. An additional 17% of renters, more than 17 million people, live in buildings of two to four units.
“As the number of Americans living in apartments rises, market trends in multifamily housing become more important for builders, investors and buyers,” said Vive Funds founder Veena Jetti.
Jetti noted the five major trends she is following this year for multifamily housing:
- Technology integration
- Sustainable and energy-efficient design
- Health and wellness amenities
- Flexibility and convenient leasing options
- Integration of shared spaces
“Technology, in the form of facilities integration, smart home features and building-wide connectivity for internet and utilities, will be increasingly important this year,” Jetti said. She expects to see an emphasis on green building materials, energy-efficient appliances, and renewable energy sources.
Jetti also is following the focus on health and wellness amenities and expects more emphasis on facilities such as fitness centers, outdoor spaces and wellness programs, as tenants are prioritizing their physical and mental health in their living spaces.
While media attention has focused on growing rental prices, with rent prices increasing nearly 3% year-over-year with a national median rental price of $1,942, Jetti said to look for more flexibility and convenience in leasing options. That could manifest in the form of shorter lease terms, furnished apartments and co-living arrangements to cater to the needs of a diverse population.
Finally, Jetti sees more integration of shared spaces and amenities to foster a sense of community and encourage social interaction, including coworking spaces, communal kitchens, and outdoor gathering areas.
“The tenant population is changing, and facilities need to accommodate and meet the needs of a changing clientele,” Jetti said. “The need for multifamily housing is growing as prices for single-family housing remain high, and multifamily facilities will continue to evolve to cater to a growing population of people looking for more technology and amenities.”
A deeper look into other emerging trends in multi-family housing from Flex can be found here.
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