Multi-Family Housing Trends 2023
As workers increasingly transition into remote roles and affordable housing becomes more sought-after, many investors are looking to multi-family housing solutions in the United States.
With older apartment complexes falling out of favor, renters are turning to updated, amenity-rich multi-family properties to meet their financial and housing needs. Properties emphasizing quality, technology and convenience will see increasing demand as the year progresses.
Understanding the coming multi-family housing trends in 2023 will help you develop properties that meet multi-family needs while exceeding renter expectations. Your residents will enjoy upgraded amenities, and you’ll see increasing interest in the competition going forward.
An Overview of Multi-Family Housing
Multi-family properties are residential complexes with multiple units inside one building. Each building may have two or more units — each unit houses a family. Duplexes and apartments are common examples of multi-family housing.
There are typically multiple buildings at each site, with residents often having access to amenities like community pools and gyms. Multi-family housing is often easier to finance but more challenging to maintain than single-family housing due to the many residents in each building.
Developments in the Multi-Family Property Market
The multi-family property market describes parts of the residential real estate industry. Both for-sale and rental complexes make up the market. With 22 million apartment units in the United States alone, the multi-family market has a significant influence that’s only expected to grow as more people require housing.
With a recession predicted for the second half of 2023, it might seem like the multi-family market is headed for a downturn. However, thanks to the continually growing demand for rentals and increases in multi-family construction, multi-family housing looks to remain in demand.
The sustained growth of work-from-home jobs means many people will look for more affordable housing outside of large cities. Owners of multi-family properties in these areas can offer renters less stress than home owning and more affordable prices with multi-family properties — many renters choose to rent to help reduce the financial and time burden of owning a home.
While a potential recession could decrease yields, multi-family real estate is likely to continue delivering returns through a downturn.
Multi-Family Housing Trends and Predictions
Several trends are shaping the landscape of multi-family real estate. As technology advances and remote work requires renters to stay at home more, residents will expect better conditions to accommodate these changes. The more you can make your properties fit and exceed these predictions, the more likely it is your properties will beat the competition.
Here are some of the most significant multi-family building trends you can expect to see in 2023:
1. Communal Spaces
With the increasing role of technology and remote work in our lives, you can expect to see a more significant investment in communal spaces. Shared spaces like pools, gathering areas, rooftop gardens, game rooms and communal kitchens help foster a sense of community among residents. With reduced at-work, in-person social opportunities, residents will look to communal spaces at their complex for social interaction.
Along with adding communal spaces to your complexes, consider investing in community events. Workshops and events encourage using these communal spaces and offer residents interesting activities to participate in. Residents can learn and grow together through these events, turning your complexes into inclusive living environments for residents to enjoy.
2. Innovative Technology
Smart technology will expand even further into 2023 and beyond. Multi-family housing properties with smart features will see preference from potential renters thanks to the increased convenience and security they offer. Voice-activated assistants, smart thermostats, lighting controls and keyless entry systems make living spaces more accessible and convenient. Consider upgrading your units with smart technology to attract more renters.
Centralization and automation will become more popular as properties look for solutions to reducing costs while streamlining and enhancing the renter experience. Centralized systems where residents can pay online, request maintenance and submit leasing requests reduce the number of employees needed and make the renter experience easier.
The convenience of accessing all these functions online makes tasks easier for residents and the leasing office. The easier it is to complete essential tasks, the more favorably residents will view your property.
4. Improved Security
Elevating security measures makes your property and residents safer. As multi-family properties look for ways to stand out, improved security will become a priority.
Video intercoms, secure parking, 24/7 surveillance and access control systems can help protect your property and make your residents safer. Integrating improved security and smart technology allows you to use remote monitoring without sacrificing security.
5. Sustainable Design
Growing demand for sustainability will spread into multi-family housing projects in 2023. Implementing sustainability initiatives draws residents to your complex and helps reduce environmental waste.
Complexes investing in bike storage facilities, on-site composting, solar energy and electric vehicle charging stations will see greater renter interest. Additionally, placing your complexes closer to public transportation hubs make your properties more accessible and desirable to potential residents.
6. Flexible Spaces
The gig economy and remote work have become expected staples in the post-pandemic world. With these types of work here for the foreseeable future, multi-family properties should create flexible spaces to attract renters.
Consider floor plans with rooms that have multiple functions — many renters look for flexible spaces that can work as gyms, home offices, relaxation spaces or bedrooms. The more flexible your rooms, the more needs they can accommodate.
Additionally, consider investing in communal workspaces for your complex. This allows residents to work remotely while enjoying the communal aspect of an office. Private meeting areas they can reserve, co-working areas and communal lounges enable residents to work effectively in designated spaces while still getting out of their apartments.
7. Aging-in-Place Solutions
While most renters are currently under 44, you should keep the future in mind with your properties. Developing spaces that residents can occupy long-term encourages them to stay with you for years.
Cultivate properties with universal design principles like medical support systems, wheelchair accessibility and proximity or access to health care facilities. The more accessible your multi-family housing, the more potential renters you have. Properties that make their facilities accessible with quality aging-in-place solutions will enjoy long-term renters and increased attention.
Multi-Family Housing Projects
JRM Construction Management is currently developing a luxury multi-family housing property at 49 Fisk St. in Jersey City. This project will emphasize comfort with cutting-edge amenities and superior design. Residents will enjoy a roof deck, fitness center and recreational lounges.
JRM has elevated the renter experience with this property, putting it at the forefront of renter trends. With extensive courtyard and roof landscaping, electric vehicle charging stations, upgraded technology, and high-end LED lighting, 49 Fisk St. emphasizes luxury, sustainability and convenience. Renters looking for unmatched comfort, luxury and wellness will enjoy everything this property has to offer.
Choose JRM Construction Management for Your Next Project
Multi-family housing is a reliable real estate investment — with expanding housing needs and renters looking for affordable, convenient options, you can take full advantage of this market. If you’re looking to develop a trend-forward, advanced housing project, make JRM your next partner.
With years of experience and an unmatched focus on quality and integrity, JRM produces projects that exceed expectations every time. Our commitment to delivering leading construction management services has allowed us to provide clients with project completion within budget and on-time for clients across New York, California, New Jersey and beyond.
If you’re interested in partnering with our expert team, browse our previous projects and contact us today.