What renters expect from tomorrow’s apartments - by Rick Haughey

Disruption is inevitable. It requires businesses, and even entire industries, to rapidly pivot from tried and tested norms to meet new dynamics and rising demands. And, while the real estate industry has been historically slow to change, a seismic shift is coming for the multifamily industry and firms now have no choice but to adapt.

Development challenges, new technologies, demographic/psychographic shifts and changing consumer preferences mean that the “apartment of tomorrow” must break from the mold of today’s apartments. According to the U.S. Census Bureau, the apartment industry houses nearly 39 million people today – and housing demand only continues to grow. An estimated 4.6 million new apartments will be needed by 2030 in order to meet that demand, according to recent research conducted by Hoyt Advisory Services and commissioned by the National Multifamily Housing Council and National Apartment Association. Thus, architects, developers and property managers must rise to the challenge of reimaging the apartment industry.

The 2018 Consumer Housing Insights Survey conducted by The National Multifamily Housing Council (NMHC) found that 38% of consumers agree that “apartment communities haven’t changed over the past 50 years” and 48% agreed that apartment communities were not “innovative.” Findings also reveal a generational divide around the role of apartments in the community – 58% of Millennials believe apartments should provide helpful services and amenities to the surrounding community, while only 38% of baby boomers agree.

Beyond a shifting role for apartments in the fabric of the larger community, chiefly in response to the sharing economy eroding the lines between public and private spaces, research illuminates a need to reimagine both apartment features and amenities. 

As consumers increasingly embrace a 360-degree approach to wellness, multifamily communities need to allow for interactive fitness and holistic living centers. NMHC’s 2018 Consumer Housing Insights Survey found 76% of respondents were working to achieve a healthy lifestyle. Further, 93% of respondents believe it is important to have a tranquil space to unwind and unplug, while 57% wish they had an environment that would promote better sleep. The latter aligns with the growth of the global sleep aid market, which was valued at $49.5 billion in 2016 and is projected to reach $79.9 billion by 2022, according to Allied Market Research.

Much like the multifamily industry must adapt to meet the needs of consumers; survey findings note consumers expect living spaces to adapt to meet their needs. Roughly four out of five consumers (83%) believe it is important to have a living space that evolves with different stages of your life while 78% crave a space that can transform to meet different needs. As households change shape, and the Baby Boomer population ages, architects and developers must design and build to meet these emerging trends.

While it remains to be seen whether 3D printers, movable walls and interactive fitness amenities will become standard apartment offerings, the disruption happening around us signals that no industry is immune. Now is the time for the multifamily industry to start designing and building the apartment of tomorrow. 

Rick Haughey is vice president, industry technology initiatives for the National Multifamily Housing Council, Washington D.C.