2022: The Year of More
Americans spent two years in and out of quarantines, getting ready for their next big move. With the COVID-19 pandemic evolving, people are ready to get back to normal — whatever that is.
The multifamily market saw the most exciting and active period within the last 40 years. Whether property management companies capitalize on that will be the challenge that shapes 2023 and beyond. Competition will be fiercer, and the budgets will be tighter.
We compiled research and data from myriad resources in the multifamily industry to find out what’s shaping tomorrow’s tenant experience. Some of the results are surprising, and implicate a swath of renter mindset shifts.
of renters now telecommute at least once a month (1)
The State of Multifamily in 2022
The multifamily industry experienced massive growth in a year when everyone tried to move on from a global pandemic. Population influxes, higher asking rents, and construction completions dominated the narrative.
However, shadows still loom overhead as a new era approaches. All the aforementioned factors benefit the multifamily industry, but also strain renters who struggle to make ends meet amid rising inflation and stagnating wages. In turn, the Great Resignation has made the already-difficult job of onsite staffing even harder, as more potential employees opt for industries with higher salaries and less stress.
So with higher rent, more mobility, and more options, renters demand to get the most out of their community — and budget.
Renters are ready to move again
Most renters stayed put during the pandemic. But many could be ready to move again as soon as their lease expires.
It's not that renters didn't want to move. Many couldn’t afford it during the pandemic, all while home ownership became less accessible because of increased interest rates, stagnating wages, and low housing supply.
As a result, renters expected their current property management company to deliver more in the meantime. As more renters worked from home than ever before, they expected their community to offer workplace amenities.
Percentage of people working from home full-time
Building a Better Community in 2023
If 2022 was The Year of More, perhaps 2023 is shaping up to be The Year of Doing More with Less.
Success in this industry means keeping your units occupied and your employees happy.
When tenants love where they live, they try to stay there longer. Employees are more likely to stay with your company when they feel valued, and neither over- nor under-challenged.
Tenant-employee relationships are also dependent upon one another. Unhappy tenants can make employees’ work lives stressful and difficult. Unhappy employees can make a property less appealing or worse, unlivable.
By the same token, satisfied residents can make a property manager’s job much more manageable. Great property executives can turn an average portfolio into thriving communities.
What Do Renters Want?
Never before has the multifamily industry had so much to offer with so much demand for it. But with over 420,000 multifamily units expected to complete construction in 2022, competition should increase dramatically.6
Judging by the majority sentiment of 44 million households, renters know it, too. Whether they act on that impulse is as much within the property manager’s control as theirs. It’s up to leadership to deliver what renters want, or they’ll have another vacant unit on their hands.
wanted smart thermostats
wanted water-saving features
wanted smart security features
wanted smart lighting
wanted smart glass privacy features
wanted smart locks
That means that nearly, or over, two-thirds of today’s tenants are interested in modern amenities. And here’s the bottom line: Plenty of new properties already have these features.7
These are the properties that will have a much easier time keeping units occupied. Those who don’t will need to get creative to keep tenants satisfied and reduce churn.
The Future is Present:
How Property Technology is Multifamily’s Most Powerful X-Factor.
Property
technology …
Boosts your community’s perceived value
Sets your community apart from the competition
Is more cost-effective than ever before
Streamlines your processes to maximize your team’s efficiency
Not only does proptech make it easier for management teams to get more done, it makes their tasks easier. Proptech breaks down community barriers and builds up positive sentiment.
With a solid proptech stack, challenges cease to become challenges outright. Instead, those challenges transform into opportunities.
Where Do We Go From Here?
Out of all the proposed solutions, property technology is poised to provide the most value at a low introductory cost.
Gone are the days that communities need a complex digital solution that requires a certificate and 100 training hours to provide ROI. With recent advances in app design and connectivity, there are now several property technology apps that integrate out of the box easily, with very little startup costs and proficiency.
Our resident engagement app, AmenityLinc, is one such example. We saw a need to elevate the multifamily living experience; not just for residents, but for property managers, too. That’s why we built AmenityLinc to be easy to use and implement from the moment you get started.
A comprehensive SaaS solution for multifamily properties
Help maintain resident experiences
Improve overall property experience
Meet modern renters’ expectations
Modernizing front-desk operations like package delivery, sign-ins, work orders, etc.
Enhance offerings to boost sentiment
Drive community engagement with amenity activation
Platform support available
References
- “Transportation to Work/Telecommuting,” National Multifamily Housing Council, updated July 2022, accessed September 27, 2022, https://www.nmhc.org/research-insight/quick-facts-figures/quick-facts-resident-demographics/ transportation-to-work-telecommuting/.
- “Executive Summary” in America’s Rental Housing 2022, ed. Joint Center of Housing Studies of Harvard University (Cambridge, MA: Harvard, Wells Fargo, 2022), 1, https://www.jchs.harvard.edu/americas-rental-housing-2022.
- Rahimat Emozozo, “10 Things Fueling Rent and Wage Growth,” National Apartment Association, last updated August 8, 2022, last accessed September 27, 2022, https://naahq.org/10-things-fueling-rent-and-wage-growth.
- “Renter Households,” America’s Rental Housing 2022, 10.
- “Quarterly Survey of Apartment Conditions,” National Multifamily Housing Council, updated July 2022, accessed September 27, 2022, https://www.nmhc.org/research-insight/quarterly-survey/2022/nmhc-quarterly-survey-of-apartment-conditions-july-2022/.
- Veronica Grecu, “The Best of Times for Apartment Construction in Half a Century: New York Takes the Lead in 2022,” RentCafe, published September 8, 2022, last accessed September 27, 2022, https://www.rentcafe.com/blog/rental-market/market-snapshots/apartment-construction-2022/.
- Lew Sichelman, “What Today’s Renters Want,” Multihousing News, published December 10, 2021, last accessed September 27, 2022, https://www.multihousingnews.com/what-todays-renters-want/.
- Sichelman, “What Today’s Renters Want."