Emerging Trends in Multifamily Development and Investment to Keep on Your Watchlist

As we move into the latter half of the year, the multifamily industry is experiencing a range of trends that are set to influence the market. While challenges such as rising construction costs, higher interest rates, and an influx of new supply are present, there are also unique opportunities for multifamily investors, developers, and property managers to navigate this evolving landscape. 

Here’s a look at the top 10 trends shaping the multifamily market in the second half of 2024.

1. A Defensive Approach to Market Conditions

With the expectation of interest rate cuts bolstering the market later on, much of the current activity is centered around managing distressed properties and loans coming due. The near-term focus is on defensive strategies, such as securing short-term bridge financing to navigate the current economic environment.

Multifamily transaction activity will remain subdued through the end of 2024 and into early 2025. Multifamily investors are advised to prepare for a gradual increase in market velocity, particularly as rate cuts begin to take effect.

2. Smaller Amenity Spaces, Bigger Impact

As developers focus on maximizing unit counts, there’s a noticeable trend towards reducing the footprint of common amenity spaces. But smaller doesn’t mean less significant. Developers are getting creative with their space, integrating indoor and outdoor areas to create versatile “three-season spaces” that can be used year-round. These spaces might include covered porches, trellised zones, or areas seamlessly blending with adjacent indoor amenities.

Moreover, the growing emphasis on wellness has led to the incorporation of high-end amenities such as spa services, saunas, cold plunge pools, and unique fitness options. For example, yoga studios, indoor cycling rooms, and virtual fitness options. Despite the reduced square footage, the focus is on delivering quality over quantity, ensuring that these spaces offer meaningful experiences for residents. 

Multifamily professionals know that the real value in a property lies in offering amenities that not only appeal to potential renters but also align with their evolving expectations and lifestyle needs. Surprisingly, only 15% of multifamily professionals track the usage of their apartment amenities, according to Multifamily Insiders. This gap represents a missed opportunity to tailor offerings that resonate with residents and maximize property value.

Today’s renters are increasingly looking for more than just a place to live — they want a lifestyle that suits their needs and preferences. For example, residents may be willing to commute a bit farther if it means having access to unique amenities like a rooftop lounge, a pet spa, or additional green space. Multifamily professionals have noted that residents are particularly “wowed” by more unconventional offerings such as blow-out hair bars, package lockers, beverage stations, and even crystal lagoons.

3. Location and Amenities as Key Investment Drivers

Suburban and garden-style apartment communities, particularly those in top-rated school districts, remain highly attractive to investors. These areas offer strong barriers to new supply, supporting resident retention and allowing for above-market rent growth. Investors are increasingly drawn to properties that combine desirable locations with robust local amenities, as these factors create a competitive edge and long-term value.

This trend is reflected in investment strategies focusing on mature, infill locations where higher resident retention and limited competition from new developments are key benefits.

4. Anticipated Uptick in Transaction Volume

While the multifamily market has seen some volatility, there’s cautious optimism that transaction volumes will pick up in the latter half of the year. Factors such as price normalization and potential interest rate cuts by the Federal Reserve could drive this increase. Additionally, a decrease in labor costs might spur an uptick in construction projects.

However, investors need to remain vigilant. Debt funds still heavily influence the market, especially for non-stabilized assets. While capital is waiting on the sidelines for potential distress situations, the extent of market distress remains uncertain. Investors should watch cap rate stabilization and transaction yields, which could signal a more favorable buying environment.

5. A Less Crowded Investment Landscape

The current market conditions have led to a pullback from traditional investors, creating a less crowded space for those willing to take calculated risks. This environment presents a unique opportunity for well-capitalized buyers who can access debt and have cash reserves to acquire institutional-quality assets at prices well below replacement costs.

For investors with the resources to navigate these challenges, the second half of 2024 could offer some of the best buying opportunities since the post-Great Financial Crisis era.

6. Oversupply Concerns in Boom Markets

In markets where development has been particularly active, there’s a growing concern about an oversupply of new units. As peak deliveries approach in several markets, competition among properties in lease-up phases is expected to intensify, especially during the slower fall and winter months.

While the long-term outlook remains positive, with supply expected to stabilize, the near-term could present challenges for multifamily investors and developers as they navigate this period of heightened competition.

7. Aging Demographics Driving Senior Housing Consolidations

With an increasing number of seniors entering the 80+ age bracket, a significant shift is occurring in the senior housing market. New construction in this sector has slowed, but the demand driven by aging demographics leads to more robust operating fundamentals and higher occupancy rates.

This trend is attracting heightened investor interest in senior housing at the property and platform levels. As the sector continues to consolidate, we’re likely to see the emergence of new, super-regional platforms that can capitalize on these demographic shifts.

8. Tech-Driven Risk Mitigation in Insurance

Rising insurance costs and limited coverage are becoming major concerns for multifamily property owners. In response, insurers are increasingly looking to properties that implement smart home technology for apartments to mitigate risks such as water damage and fires. Properties that adopt these technologies may benefit from lower premiums and more favorable coverage terms.

Additionally, data analytics is becoming more prevalent in the insurance industry, allowing insurers to assess specific risks and offer customized premiums based on an asset’s unique risk profile.

9. Targeted Marketing Campaigns for Engagement

Property managers increasingly seek to connect with local communities through targeted marketing partnerships. These campaigns help properties stand out in a competitive market and foster stronger relationships with residents and the broader community.

For example, partnerships with local sports teams or cultural organizations can enhance a property’s visibility and community presence. This approach is particularly effective in markets where traditional marketing efforts may be less impactful.

Discover 10 more ways to market your business in the multifamily market through partnerships, events, sponsorships, and syndications in our blog.

10. Renovations Focused on Flexibility and Remote Work

As the demand for flexible, remote workspaces continues to grow, developers are placing a greater emphasis on renovating common areas to accommodate this trend. Multifunctional spaces that blend work, leisure, and social interaction are becoming increasingly popular.

These renovated areas often include open kitchens, lounge seating, and work-from-home accommodations designed to create a vibrant and flexible environment for residents. By focusing on these renovations, developers can enhance the appeal of their properties and meet the evolving needs of today’s renters.

Adapting to the Future: Strategies for Multifamily Success

The multifamily market is navigating a complex landscape this year, with a mix of challenges and opportunities on the horizon. Staying informed about these trends is key to positioning your organization for success. Whether it’s through targeted marketing, strategic investments, or innovative property renovations, the key to thriving in this environment lies in staying agile and proactive.
At Criterion.B, we’re here to help you navigate these changes and maximize the opportunities. If you want to refine your marketing strategy or explore new avenues for growth, contact our team today.

Expert Tips to Avoid Property Management Nightmares

The life of a property manager is a juggling act. You’re responsible for everything from resident relations and maintenance to budgeting and legal compliance. It’s no wonder that mistakes can happen, especially for new property managers or those managing a growing portfolio.

The good news is that by identifying common pitfalls, you can take proactive steps to avoid them.

Here’s a look at some of the biggest mistakes property managers make, along with actionable tips to keep your properties running smoothly:

1. Failing to Properly Screen Residents

A bad resident can be a nightmare for any property manager. They can damage the property, disrupt other residents, and drain your time and resources. 

The fix? Implement a thorough screening process that includes credit checks, rental history verification, employment verification, and reference checks. Don’t skip this crucial step — a bad resident can cost you far more in the long run than a thorough screening process ever will.

2. Not Having Clear Lease Agreements

A well-written lease agreement protects both you and your residents. It should clearly outline the rights and responsibilities of both parties, including rent amount, due dates, late fees, pet policies, maintenance procedures, and termination clauses. 

The fix? Use a standardized lease agreement that has been reviewed by a lawyer. Keep it updated with any local or state regulations that may change.

3. Letting Maintenance Requests Pile Up

Prompt and thorough maintenance is a cornerstone of successful property management. Like addressing resident complaints quickly, addressing maintenance requests swiftly is essential to avoid a cascade of negative consequences. 

Here’s why prioritizing maintenance is crucial:

• Protecting Your Investment: Regular maintenance plays a vital role in preserving the condition of your properties. Neglecting repairs can lead to further deterioration, decreased property value, and higher operating costs. Think leaky faucets that escalate to water damage or clogged gutters that lead to foundation issues. Addressing minor issues promptly saves you money in the long run.
• Resident Satisfaction & Safety: Living in a well-maintained property contributes significantly to resident satisfaction. Ignoring maintenance requests creates frustration and a sense of neglect. Prioritizing repairs ensures a safe and comfortable living environment for your residents.
• Reduced Liability: Letting maintenance issues linger can expose you to legal trouble. For instance, a slip and fall because of an unaddressed ice patch on the sidewalk could result in a lawsuit. By promptly addressing maintenance requests, you’re mitigating potential liability risks.

Here’s how to ensure your properties are well-maintained:

• Routine Inspections: Schedule regular inspections of your properties to identify potential problems before they become major issues. This could involve monthly walkthroughs or annual comprehensive inspections.
• Qualified Contractors: Develop relationships with qualified and reliable contractors who can handle various maintenance tasks. Verify references to confirm licensure and insurance. Oversee the quality and timeliness of their work to ensure efficient repairs.
• Budgeting for Maintenance: Don’t underestimate the importance of budgeting for maintenance and repairs. Factor in routine maintenance costs and a reserve fund for unexpected emergencies and major repairs. This ensures you have the resources readily available when needed.
• Communication Is Key: Like with resident complaints, keep residents informed throughout the maintenance process. Acknowledge their request promptly, explain the repair timeline, and provide updates if any delays occur. Open communication fosters trust and reduces frustration.

4. Poor Communication With Residents

Communication is the cornerstone of any successful business, but it takes on an even greater significance in property management. You’re constantly juggling interactions with a diverse group — your team members, property owners, residents, and vendors. When communication breaks down, it can lead to misunderstandings, conflicts, delays, errors, and ultimately, dissatisfied customers.

Here’s how to ensure smooth communication:

• Establish Clear Channels: Don’t leave your team and renters guessing how to reach you. Set up designated communication channels — email, phone calls, text messages, or online platforms like resident portals. Consistency is key — don’t make them chase you down across multiple platforms.
• Frequency & Transparency: Aim for frequent, transparent communication. Regular updates keep everyone informed and in the loop. Don’t be afraid to share both good and bad news promptly and honestly.
• Tailored Communication: A one-size-fits-all approach won’t work. Tailor your communication style to your audience. Use clear and concise language with residents, provide detailed reports to property owners, and foster open collaboration with your team.
• Feedback & Listening: Communication is a two-way street. Listen to your team and renters’ concerns, questions, and suggestions. Provide positive and constructive feedback to keep everyone motivated and on track. Respond promptly and professionally, demonstrating that their input is valued.
• Technology Advantage: Fortunately, technology is on your side. Utilizing property management software streamlines communication by centralizing information, automating tasks, and facilitating easy access for all parties involved. This reduces the risk of errors and keeps everyone on the same page, boosting overall efficiency.
• Building Relationships: Effective communication goes beyond simply sharing information. It’s about fostering trust and building strong relationships. Schedule regular team meetings to discuss projects, address concerns, and celebrate successes. Open communication fosters a collaborative environment where everyone feels comfortable contributing their best work.

5. Not Keeping Records and Documents

Failing to organize and store important documents properly can lead to a domino effect of problems, including missing records. Missing or disorganized records can make tracking important information (i.e., lease agreements, maintenance requests, and financial transactions) difficult. This can lead to confusion, errors, and wasted time.

Without clear documentation, disputes with residents over rent payments, security deposits, or repairs can become tangled. Without proper records, you may be unable to defend your position in a legal dispute, potentially resulting in hefty fines or even lawsuits.

Here’s how to ensure your records are organized, secure, and accessible:

• Secure Storage: Utilize a secure and accessible system for storing your records. Cloud-based storage solutions offer convenience and accessibility, while traditional filing cabinets can work for paper documents.
• Regular Review and Updates: Don’t let your records become an archive of forgotten paperwork. Schedule regular reviews to ensure all documents are accurate and up-to-date.
• Compliance With Regulations: Retention laws vary depending on your location. Familiarize yourself with the relevant regulations regarding record keeping and disposal. Understanding these requirements ensures you’re adhering to legal mandates.

Effective record-keeping is a fundamental skill in property management. Most real estate transactions involve a mountain of paperwork — lease agreements, maintenance records, financial statements, and more. 

Maintaining electronic copies alongside physical documents is essential in today’s digital age. This allows you to access crucial information even when you’re away from the office, ensuring you can always stay on top of your business.

6. Not Taking Advantage of Technology

Many property management software solutions can streamline your workflow and save you time. These tools can help you with tasks like screening residents, collecting rent online, managing maintenance requests, and generating reports. The fix? Research property management software options and find one that fits your needs and budget. Many offer free trials, so you can test them before committing.

7. Not Marketing Your Properties Effectively

Vacancies cost money. There’s no sugarcoating it. A well-defined multifamily marketing strategy is essential to attract qualified residents and keep your properties occupied. 

Don’t put all your eggs in one basket. Utilize a diverse range of multifamily marketing channels to reach your target audience. This could include:

• Online Listings: High-quality listings on popular rental platforms are a must-have. If possible, showcase your properties with professional photos, detailed descriptions, and virtual tours.
• Social Media Marketing: Use social media to connect with potential residents. Share engaging social media posts, run targeted ads, and create a community around your properties.
• Website Presence: A professional website is a valuable asset. It lets you showcase your properties, provide leasing information, and establish your brand identity.
• Offline Strategies: Don’t underestimate the power of traditional methods. Yard signs, local print ads, and partnerships with businesses in your area can still be effective ways to reach potential renters.

While a do-it-yourself approach is possible, managing a comprehensive marketing strategy can be time-consuming, especially as your portfolio grows. This is where partnering with a marketing agency can be a game-changer.

Think of a marketing agency as an extension of your multifamily property team. They can provide a wealth of expertise and resources to help you achieve your marketing goals and increase your bottom line. 

Here are just a few of the ways a marketing agency can streamline your marketing efforts:

• Streamlined Marketing Collateral: Ordering eye-catching flyers, brochures, and other marketing materials can be a hassle. Criterion.B offers a one-stop shop for designing and ordering all your promotional needs to save time and ensure brand consistency.
• Actionable Analytics & Reporting: A good marketing agency will leverage analytics tools to track the performance of your marketing campaigns. This data can reveal valuable insights into what’s working and what’s not. They can help you set up and track key metrics like website traffic, lead generation, and conversion rates. 
• Search Engine Optimization (SEO): Improving your website’s ranking in search results so potential residents can easily find your listings.
• Email Marketing: Creating targeted email campaigns to nurture leads and connect with potential renters.
• Blogging and Content Creation: Developing engaging content that showcases your properties and attracts qualified leads via a blog post.
• Social Media Management: Creating engaging content and managing interactions with potential residents across all social media channels.
• Branding and Design: Developing a strong brand identity for your property management company, including logo design and website creation.
• Website Development and Management: Building a user-friendly website that showcases your properties and provides a seamless leasing experience.

8. Not Staying Up-to-Date on Industry Trends

The property management industry constantly evolves, with new technologies and regulations emerging. Staying informed is important to ensure your business runs as efficiently and effectively as possible. 

The fix? Attend industry conferences, webinars, and workshops. Read industry publications and blogs to stay up-to-date on the latest trends.

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9. Ignoring Complaints & Not Focusing on Resident Retention

High resident turnover can be a major drain on your resources. It involves advertising costs of vacant units, showing apartments, screening new renters, and processing paperwork. It can also result in a loss of rental income during vacancy periods. But the hidden costs are even greater — negative reviews, a damaged reputation, and a revolving door of unhappy residents.

Here’s how to cultivate a thriving community that keeps renters happy:

• Treat Renters with Respect: Building positive relationships starts with respect, courtesy, and professionalism. Respond to their needs and concerns promptly and effectively.
• Responsive Complaint Resolution: A well-defined system for handling complaints is essential. This includes a clear process for receiving, recording, and resolving issues. Respond quickly to complaints to explain how you’ll address the problem. Keep residents updated throughout the process, and follow up after the repair.
• Value Feedback and Communication: Open and transparent communication is key. Encourage feedback. Regularly solicit their input through surveys, resident meetings, or suggestion boxes. Actively listen to their concerns and suggestions, demonstrating their input is valued.
• Offer Incentives for Renewals: Show your existing renters how much you appreciate them by offering incentives for lease renewals. This could include discounts on rent, free parking, or waived application fees.
• Create a Sense of Community: Help your residents feel like they belong! Organize fun events, create social media groups for them to connect, or offer amenities that encourage interaction. When residents feel like part of a community, not just renters in a building, they’re more likely to want to renew their leases.

10. Micromanaging Your Team & Not Delegating Tasks

Learning the art of delegation becomes increasingly important as your property management portfolio expands. While you may be tempted to hold onto the reins and meticulously manage every detail yourself, this approach is ultimately unsustainable and can hinder your long-term success.

Micromanaging your team can have several negative consequences. It can stifle their motivation, creativity, and sense of autonomy. Constantly hovering over their shoulders can make them feel like they’re not trusted to do their jobs effectively, decreasing morale and productivity.

The solution lies in empowering your team through effective delegation.

• Delegate Based on Strengths: Analyze your team members’ skills, experience, and interests. Assign tasks that align with their strengths and allow them to develop new skills.
• Trust and Autonomy: Once you’ve delegated a task, trust your team to complete it without your constant oversight. Micromanaging every step is a recipe for frustration and resentment.
• Support and Resources: Provide your team with the necessary resources for success, such as training materials, software tools, and clear guidelines.
• Coaching for Growth: Don’t hesitate to offer guidance and support as needed. Regular check-ins and constructive feedback can help your team members grow in their roles.

Often, managers who micromanage their teams worry their employees aren’t doing a good job. If you don’t communicate well with your team or can’t motivate them, they might not feel like doing their best work. Instead of hovering over them, invest in becoming a better leader. Learn how to communicate clearly and build a team environment where everyone feels trusted and responsible for their work.

Remember, you hired your team for a reason — you believe in their skills and potential. Start by delegating smaller projects that allow them to demonstrate their capabilities. As they gain confidence and experience, gradually increase their scope of responsibility. If they hit a roadblock, provide coaching and support to help them develop the skills they need to reach the next level.

Top Predictions & Multifamily Statistics to “Survive Until ’25”

In the multifamily sector, some phrases have been going around: “Survive until ’25” or “Thrive in ’25.”

But are these mantras a mere call for endurance, or could they unveil a silver lining? Opinions vary widely. 

For some, the coming years spell unprecedented opportunity, while for others, the future looks daunting, shadowed by past decisions. 

However, what’s becoming increasingly clear is the emergence of a buyer’s market unlike any we’ve seen in recent memory, promising to breathe new life into the industry. The exact timing remains uncertain, but the anticipation is palpable.

So, how do we position ourselves in this period of uncertainty? Our focus shouldn’t just be on surviving and seizing the moment to thrive. This is where true innovation lies — leveraging even the most modest marketing budgets to make an impact and set the stage for significant growth. 

With this mindset, here are 10 pivotal multifamily statistics every executive should consider as we chart our course through 2024:

1. Vacancy Rates Anticipated to Climb to 6.25%

The national multifamily vacancy rate is anticipated to climb to 6.25%, marking a notable shift in the market. This adjustment comes in the wake of substantial new construction deliveries, which have altered the dynamics of the apartment rental market. As of December 2023, the national occupancy rate dipped to 94.1%, the lowest since January 2014. This represents a significant drop, positioning December 2023’s occupancy over 100 basis points behind the decade’s average of 95.4%.

2. Average Rent Growth Expected Between 1-1.5%

This year, modest rent growth is expected between 1.0% and 1.5%, with the potential for further deceleration should job growth falter significantly. This reflects a market stabilizing after the turbulent rent fluctuations experienced during the pandemic years. This growth rate balances affordability concerns and the need for investment returns.

3. Digital Engagement on the Rise

The digital frontier of apartment hunting continues to evolve, with over 80% of potential renters initiating their search online and 75% expecting virtual tours as a standard offering. 

Adding to the digital engagement narrative, a joint study by SurveyMonkey Audience and Binary Fountain reveals a compelling insight: 64% of renters are willing to pay a premium for properties that boast positive online reviews. This multifamily statistic underscores the importance of bolstering a property’s digital presence and actively managing and enhancing its online reputation to attract and retain tenants.

Here are a few more multifamily statistics from the report:

• 93% of U.S. apartment seekers have used online reviews in their rental property search.
• 74% of renters read between one and 10 reviews before deciding on their rental property.
• 85% reported looking at online reviews after a friend or family member’s recommendation.
• 64% said they would pay more for a highly ranked or reviewed property.
• 58% used Zillow to find apartment ratings and reviews, followed by Google (51%) and Apartments.com (48%). 
• Google was the leading choice for sharing experiences at 31%, followed by Facebook at 27% and Apartments.com at 24%.

4. 60% of Renters Seek Sustainability

An increasing number of renters prioritize sustainability in their housing choices, with a recent survey by Apartments.com highlighting this shift. The survey revealed that 60% of renters actively seek out environmentally friendly apartments, indicating a significant demand for green living options. 

Moreover, a quarter of these respondents are willing to pay a premium for such amenities, underscoring the value they place on sustainability. Notably, 17% stated they would not consider renting an apartment that doesn’t embrace green practices. 

Among the eco-friendly features in high demand, on-site recycling programs and energy-efficient windows emerged as the most coveted by renters, pointing to specific areas where multifamily properties can invest to attract eco-conscious residents.

5. 51% of Renters Consider Smart Home Tech Essential

The demand for smart home technology among renters, especially those with incomes exceeding $100,000, transforms it from a luxury to a necessity. A striking 51% of these renters now consider smart home technology essential, while 48% view property technology (Proptech) as indispensable. 

The willingness to invest in these amenities is notable, with over half of the respondents ready to pay an additional 1-10% for properties with advanced technology. Furthermore, nearly three in ten are open to paying at least 11% more, emphasizing the growing significance of proptech in the rental market.

6. 72% of Renters Own Pets

With 72% of renters owning pets, pet-friendly amenities and policies have become crucial. Offering pet parks, grooming stations, and flexible pet policies can significantly enhance property appeal.

7. 55% of Renters Seek Home Office Space

The work landscape has undergone significant transformations, increasingly influencing renter preferences within the multifamily sector. Currently, 55% of potential residents are looking for living spaces that cater to their remote work needs, with a demand for units featuring dedicated home office spaces or co-working amenities. This trend is not fleeting; it’s a solid shift towards accommodating the growing work-from-home culture.

As of 2023, 12.7% of full-time employees have embraced fully remote roles, while 28.2% are navigating a hybrid work model. However, 59% of the workforce still operates in traditional in-office settings. This multifamily statistic serves as a reminder that, despite the increasing prevalence of remote work, the conventional office-based work model remains predominant.

However, the trajectory for remote work points towards a future where it becomes even more commonplace. Upwork’s projections indicate that by 2025, the remote workforce is expected to swell to 32.6 million Americans, representing approximately 22% of the workforce. 

For multifamily property developers and managers, these multifamily statistics underscore the importance of adapting to the changing needs of the workforce. As remote work becomes more entrenched, the demand for multifamily units that support this lifestyle is expected to rise. Integrating dedicated workspaces and flexible co-working options into multifamily properties will not only meet the evolving preferences of residents but also position these properties as attractive choices for the growing workforce segment that values the ability to work from anywhere.

8. Less Than 1% of U.S. Homeowners Are Gen Z

Generation Z isn’t just entering the rental market; they’re rapidly transforming it. Over the last five years, this group has added 4.5 million renters, outpacing growth from any other age group. Most Gen Zs who have moved out of their family homes are renters — 84% rent, while only 16% have transitioned into homeownership. Currently, less than 1% of U.S. homeowners belong to Gen Z, but they make up 9% of the nation’s rental population. According to Rent Cafe, only 3.9% of these Gen Z renters live independently without roommates.

This surge of young renters comes when homeownership reflects a significant age divide. While 79.3% of those aged 65 and older own their homes, a stark contrast is evident in the under-35 demographic, where 65% of American households rent. This divide is further highlighted by Wood Group Mortgage’s multifamily statistics, illustrating the housing market’s shifting dynamics.

Additionally, the median age of homebuyers has climbed to 47, while the median age of renters is 38, pointing to a broader trend of delayed homeownership. This delay is likely influenced by a common sentiment among millennials — 64% express regret over purchasing their homes, compared to only 33% of baby boomers.

Gen Z’s preferences are reshaping the rental landscape, prioritizing high-speed internet, online community engagement, and flexible lease terms. Understanding these trends is critical for multifamily professionals looking to attract Gen Z renters. Catering to their tech-savvy and value-driven needs will be key to securing them as tenants and adapting to the broader shifts in both the rental and homeownership landscape.

9. Investment Volumes Decreased 60%

As we embrace the mantra of “survive until ’25,” the multifamily investment sector in 2024 is navigating through a period of cautious optimism marred by a significant downturn from the previous year. Investment volumes dropped by 60% in 2023 to a low not seen since 2014, and the start of 2024 hasn’t shown the rebound many hoped for. 

This cautious approach stems from a complex interplay of declining interest rates failing to stimulate investment and concerns over NOI growth amidst rising vacancies, despite a robust absorption rate offset by new market entries.

The latter half of 2024, however, may offer a silver lining. With anticipated Federal Reserve rate cuts and an expected boost from loan maturities, there’s potential for a revitalized transaction pace reminiscent of the pre-COVID era. 

Drawing from past downturns, where multifamily led the recovery after a two-year lull, there’s cautious optimism that the sector can navigate current uncertainties, aligning with the broader goal of thriving beyond survival in the multifamily landscape.

10. 30% of Renters Spend More Than 30% of Income on Rent

Despite an overall robust market, the multifamily sector faces significant affordability challenges. A concerning multifamily statistic reveals that over 30% of renters are spending more than 30% of their income on rent, underscoring the pressing issue of balancing rent growth with affordability. A notable shift in homeownership trends further compounds this dilemma. 

According to iPropertyManagement, homeownership has declined, with 36% of American households now opting to rent rather than own. This shift is significant, reflecting broader economic and societal changes.

Complicating the picture, Flex reports that only 45% of renters feel financially positioned to purchase a property in their city, considering the average home prices. This multifamily statistic is particularly striking when compared to the median household income of homeowners in the U.S., which stands at $72,615. These figures highlight the widening gap between the cost of owning a home and the financial realities facing many renters today. 

As we navigate these complex dynamics, the multifamily sector must grapple with the challenge of making housing both accessible and affordable, all while adapting to the evolving preferences and needs of a diverse renter population.

What Do Renters Really Want?

Navigating the multifamily market requires a deep understanding of renter preferences and expectations. A recent survey sheds light on the disconnect and alignment between renters and landlords, offering valuable insights for multifamily executives aiming to refine their offerings. 

Here are the key findings:

• 76% of renters believe landlords have a “pretty” or “very” good understanding of what they desire in a rental property.
• 86% of property managers are confident they understand renter preferences at least well.
• Renters were willing to pay more than property managers expected for three amenities: convenient payment options, guest parking, and flexible lease terms.
• Property managers overestimated renters’ willingness to pay extra for pet-friendliness and proximity to high-quality schools.
• A significant 48% of renters prioritize specific features over affordability. 
• In contrast, only 18% of landlords believed that features were more important to renters than affordable rental rates.

These insights underscore the importance of multifamily executives and property managers aligning their offerings with renter preferences, mainly when misconceptions about value and priorities exist. By focusing on the amenities and terms that renters truly value, multifamily properties can better meet the needs of their target audience, ensuring satisfaction and fostering loyalty.

Understanding these multifamily statistics provides multifamily executives with a comprehensive view of the current market trends, renter preferences, and investment dynamics. With this knowledge, industry leaders can devise strategies to address today’s challenges and capitalize on emerging opportunities to ensure sustained growth and success in 2024.

The Best Multifamily Technology Tools to Lease Up Your Property

Multifamily technology is heavily involved in how renters browse for potential places to live. Apartment complexes and buildings are leveraging technology creatively to help their vacant units stand out. 

The internet is extremely saturated with noise within the real estate rental space. The multifamily owners that can leverage technology to their advantage when attempting to lease up their property are the ones saving more money by limiting vacancies. 

As multifamily owners, property managers, and real estate professionals, it’s vital that we change and adapt to multifamily technology within the industry.

Here are several creative uses of multifamily technology that you can implement to help lease up your property and avoid vacancy costs.

1. 3D Virtual Tours

Consumers browse and shop online for goods and services more than ever. The same applies to the multifamily industry. When renters browse for potential places to move into, most search online. How can you better reach potential renters looking for apartments online?

Consider creating a 3D virtual tour of the unit that is coming available to rent. 3D tours are becoming more popular because of how immersive they are. A potential resident can fully experience what it’s like to walk through a unit via a virtual tour. If your community offers this and others don’t, yours will surely stand out from the crowd. 

It can be challenging to motivate a prospective resident to physically visit your property and view the available units. 3D virtual tours enable renters to view a space entirely and get a very good idea of their true interest in living there. 3D virtual tours will generate more interest from renters looking online for a place to live and ultimately will help you fill the unit faster.

2. Aerial Drone Footage

Does your multifamily building offer outdoor amenities, parking, and green areas to walk around? If there are any features of your property worth highlighting from the sky, do it. Property managers are utilizing drones to capture aerial footage of properties and buildings they are trying to get leased. For example, if the property has a pool and outdoor yard space on the grounds, capturing that through a drone video can help showcase these features to potential residents browsing online. 

People love videos because it allows them to experience something through a different lens and perspective. By highlighting the outdoor features of a property, you will naturally generate more interest from prospects. The drone videos that you capture are also considered evergreen content. You can continue to reuse them as long as the video doesn’t appear outdated. It’s worth the one-time investment to leverage drone footage to help show off your property and get it leased up.

3. QR Code Advertising

When browsing for a place to live, renters want information quickly. The more easily accessible your apartment details are, the more web traffic you can receive. Consider using QR codes to creatively advertise your community and increase occupancy rate. 

QR codes can be placed anywhere. For example, if you have a mailing list, you can place QR codes on a postcard that you mail out that links to an available floorplan, the drone video, or a 3D virtual tour. The options for what you want the QR code to link back to are endless.

QR codes are an inexpensive way to generate more interest in your property. These codes are free to create online, depending on how unique and customized you want them to be. It’s not uncommon to now see QR codes on physical signs or billboards throughout your travels. Wherever you think it could be relevant to place one, do it.

Another good example of how you can leverage QR codes is through a resident referral program. Referring someone can take work. The easier that you make that possible for someone, the more likely they are to refer to you. If you have a leasing office or common area at your property, consider hanging up a poster with a QR code that links to a webpage describing your resident referral program. 

Certain property managers will offer an incentive or gift if they receive a referral. The QR code can go directly to a webpage containing the referral program information and a submission form where people can enter their referrals. These codes leverage technology by allowing people to give you referrals to lease your units within a few seconds, right from their smartphones.

Jenn is an experienced writer for the real estate industry and a house flipper for We Buy Houses in Denver. If she’s not swinging a hammer, she’s either writing about different real estate topics or reviewing investment property opportunities.

Modern Multifamily Marketing: Say Yes to Touchscreens

There’s certainly a cool factor when it comes to smart home technology for apartments. But with the growing digital age, are they right for your multifamily property? Apps, drones, and VR are modern tactics in multifamily marketing that may give your property the edge it needs.

Apartment owners are already experimenting with smart-home applications, such as keyless entry, smart thermostats, and smart elevators. As these tech amenities become more common, renters will likely come to expect them. And properties can even charge more for these smart apartments, proving an ROI.

Why Upgrade Your Smart Home Technology?

With millennial and Gen Z renters taking increased pride in both their apartments and the community, the movement toward smart home technology for apartments only further resonates with their tech-savvy lifestyles.

Today’s renters expect apartment communities to have high-speed internet and Wi-Fi around the common areas. Smart home technology for apartments has the potential to be an investment that will pay off in the years down the road; some industry leaders are already beginning to see the benefits of upgrading technology.

Smart Home Technology Necessities

Are you convinced smart home technology for apartments is the next big thing? Try these tech upgrades and get smart!

Touchscreens

When it comes to touchscreens, it’s important to create unique content that highlights the strength of the technology. Perhaps that could be interactive floorplans and photo galleries, with the ability to zoom and change angles. 

Let your touchscreen help you. Add features to make the screens like extra agents in your leasing office. For example, in high-end hotel lobbies, the touchscreens connect guests to events in the city, help them book appointments, and allow them to take and share pictures. For more urban properties, a Wayfinder tool will benefit residents and guests who may need help getting around.

Touchscreens are also a great multifamily marketing tool for showing off the property culture and creating a sense of community. This also helps attract potential residents. Maybe you display the testimonials of past renters or give birthday shoutouts to current tenants.

USB Charging

Start simply by upgrading your outlets. Swap out traditional outlets for ones with USB charging capabilities. This is ideal for small units with limited space and eliminates a resident needing an outlet adapter.

Smart Vents

With the thought of limited or shared space in mind, smart vents are also a wonderful option to upgrade. Perfect for roommates, smart vents connect to the Wi-Fi network and learn to automatically open or close the vent based on the existing temperature in the room. This alleviates the issue of terrible airflow that can leave your apartment feeling warm in one room while cold in another.

Internet-Connected Thermostats

Some communities utilize Internet-connected thermostats that are controlled by a smartphone in real time. This is a win-win for both renters and property managers; renters can control their temperature as they please, and property managers can turn off air conditioning systems when a renter moves out.

Smart Locks

Smart locks are also a rising technology that prevents physically changing out locks or replacing keys after renters move out. This helps properties save money on maintenance while also keeping residents feeling secure. Whether a resident forgot or lost their keys at the bottom of their purse, the smart lock app simply allows them to lock or unlock the door via a smartphone.

Package Lockers

Lastly, an upgrade that services the whole community is smart package lockers. Property managers often face the task of dealing with avalanches of packages received each day. This can lead to a multitude of issues, from delayed notification of a package to clogged-up storage space. A solution is provided to property managers and residents by installing a locker.

Smart home technology for apartments is opening doors for both industry professionals and residents alike. What will you do for your property as the market demand for more modern apartments grows?

 Harnessing Multifamily Technology, Proptech, and Web 3.0

What do multifamily technology, Gen Z, and Web 3.0 all have in common? If you said that they’re drastically changing the digital landscape of the multifamily marketing industry, then you are correct!

And for those of you who haven’t caught on yet — it’s time. Technology has thrust its way into a rather traditional industry, which has seen little variation over the past few years. Industry leaders are just beginning to harness multifamily technology and proptech — especially when buying, renting, and investing. 

This blog will cover six multifamily technology trends:

• Crowdfunding
• Online Community Marketplaces
• The Internet of Things
• Virtual/Augmented Reality
• Web 3.0
• Blockchain and Cryptocurrency

Millennial and Gen Z Renters in the Digital Landscape

As we explore how the multifamily marketing digital landscape is shifting, keep the millennial factor in mind. Millennials (and the up-and-coming Gen Z renters) bear some weight in this industry. They are the renters and the industry leaders of today and tomorrow, not to mention a sought-after generation for multifamily marketing professionals. They’re also brand-centric, tech-savvy, and peer-reliant regarding product referrals or real estate.

Specifically, in the multifamily industry, leasing managers quickly realize that millennial and Gen Z renters would rather text than talk during the leasing process, research extensively on their smartphones, and need community-based, amenity-rich properties to satisfy them. 

Their expertise in technology puts them at the forefront of this multifamily revolution — get Gen Z and millennials engaged. You have a large, loyal, and vocal audience to build your brand. On the development side, new tools make investing, consolidating, and connecting easier.

Now, let’s dive into the Web 3.0 and multifamily technology trends shaping the industry…

1. Crowdfunding is changing the face of real estate investments.

Commercial real estate is charting new territory. Across all industries, the internet hubs more information, communication, and services than ever before, and it’s crucial for multifamily to embrace its power. Real estate crowdfunding is changing the landscape through interconnectivity — raising awareness among unknowing investors and enabling others to have their own piece of the pie.

What is real estate crowdfunding?

In short, crowdfunding is a way for companies to promote and source funds for a project. This often comes from large numbers of people using the internet. As multifamily technology emerges, they’re employing real estate crowdfunding as a new way to tap the market. Ultimately, real estate crowdfunding allows smaller investors to fund larger properties.

Which crowdfunding platforms should you keep on your watchlist?

Fundrise

Fundrise is the leading real estate crowdfunding and investment platform. The top real estate companies nationwide use Fundrise to expand their network and raise capital. But why exactly is this application leading crowdfunding? First, Fundrise provides lower costs than traditional lenders and equity partners for mixed-use and multifamily developments. Second, Fundrise requires approval for each project before offering its service; once approved, they funds the investment upfront. Fundrise then seeks out suited investors through ongoing reporting and evaluation.

Selequity

Selequity is an investment platform that aims to make raising capital much simpler. Selequity connects advisors and investors with commercial real estate opportunities from proven sponsors. This makes it easier for investors to fund a project with limited entry requirements, increasing the number of projects getting started.

These two of many real estate crowdfunding applications have disrupted the market. The thing about multifamily technology is that once someone makes something work, someone else will try to improve it.

2. Online marketplaces are paving the way for multifamily innovation.

The internet has become the new marketplace, connecting one individual with a good or service to another interested individual. An online community marketplace is simply a virtual space for buying, selling, and sharing goods directly between parties. No middleman, corporation, or computerized answering systems.

For example, many apps we use regularly (e.g., Uber, Airbnb, LinkedIn) transform how we seek goods and services. The multifamily industry, especially, is becoming more tech-savvy by connecting customers and properties in real-time.

The Real Estate Marketplace Frontier

Airbnb

Airbnb has changed the way we think about booking hotels. As you likely already know, Airbnb enables residents to rent out their place to the world; it sources homes, private rooms, and even couches for temporary use to the public. For a company worth $38 billion, it’s safe to say its method is working. And this is only the beginning of how technology and real estate are teaming forces.

We Are Pop Up

Do you have a space you no longer use? This platform allows you to “rent out your empty shelf, rail, or shop window to designers, makers, and artists.” No longer are artists speaking with brokers to lease a space for their work. Now, they can seek out all available sources without a property agent. Certainly, ideas like We Are Pop Up are causing traditional real estate agents to wonder about the future. Further, online marketplaces are building communities, offering convenience, and, most importantly, harnessing human-centric approaches.

3. The Internet of Things offers a glimpse into the future of multifamily.

If you aren’t familiar with the Internet of Things (IoT), learn fast. In short, Intelligent software collects and monitors information from the physical environment with little to no human interaction. Examples include sensors on cars that enable automatic driving, artificial limbs that respond to brain waves, and interior temperature-controlling applications. Conceptually, the Internet of Things will cause us to rely less on traditional computers and more on technology directly embedded into our lives.

Nest

The multifamily industry is increasingly becoming efficient. Nest is a smart thermostat controlled entirely by a smartphone. The app allows you to adjust your A/C from your smartphone, and it even learns the temperature schedule and programs to adjust. As a result, heating and cooling bills can be lowered just based on its ability to adjust temperature efficiently. The smart technology in this app’s functioning is paving the way for improved interactions with buildings and our surroundings, and it’s already become a staple feature in many apartment homes.

The Array of Things

Imagine seeing which city street routes were most populated to avoid walking alone at night. That’s exactly what the Array of Things (AoT) is. It is “an experimental urban measurement system comprising programmable, modular “nodes” with sensors and computing capability so that they can analyze data internally.”

AoT is installed in Chicago and several partner cities to collect real-time data for research and public use. The concept of AoT is analogous to a fitness watch that tracks your movements, except that it does this for the city. In addition, the environmental sensors collect counts on temperature, humidity, allergens, carbon monoxide, light, and much more. What does this mean for real estate? As smart sensor multifamily technology evolves, “data-fueled urban planning” can be expected in many more cities.

4. The line between real and virtual/augmented reality is fading.

We live in a time when science fiction fantasies seem plausible, buildings are 3D-printed, and cars drive themselves. Yet, as multifamily technology evolves, there is a noticeable gravitation toward multifamily and real estate. As mentioned above, we already see IoT-connected buildings and devices controlling temperature. With smartphone technology, the not-so-far-off future of the multifamily market is here, and it’s pretty fascinating.

Virtual reality (VR) is immersive 3D software that allows users to explore a digitally simulated world. On the other hand, augmented reality (AR) takes the real-world environment and adds computer-generated objects and textures. So, think of it this way: In VR, you look at an artificial, 360-degree digital space. Meanwhile, in AR, you’re looking at the physical environment with added digital components.

Imagine if an empty office space, street corner, or building blueprint was a digital, blank canvas. Without physically arranging a layout, constructing a building, or designing a model, AR virtually makes it possible. Augmented reality enables users to pan their iPad around a space, resize objects, arrange furniture, explore the 3D interior of a blueprint, or visualize a building.

The concept of augmented reality seems futuristic, but the reality is tangible. From architects to consumers, AR brings buildings and real estate to life, simply with a smart device. The beginning stages of augmented reality technology open the door for a commercial outlet to manipulate, evaluate, and reimagine our environment.

A Virtual Tour of the Future

Oculus Rift and Samsung Gear VR, among others, have already disrupted the multifamily market. Prospective renters can pop on the goggles and tour a home, office space, or apartment building.

But what if the building doesn’t exist yet? No problem. Developers and leasing agents are teaming up with the technology to allow buyers to experience a space before it’s even built.

With frame rates increasing exponentially, the virtual world no longer looks like a pixelated video game. Abundant data and online 3D renderings allow this world to be possible. It’s an “architectural visualization” and a full immersion of the unbuilt environment.

Opening the Door to Experiential Multifamily Marketing

Virtual reality is more than a slideshow of static pictures. Gone are the days of outdated zooming and panning of staged interiors. Virtual reality opens the door to experiential multifamily marketing and a new kind of accessibility.

The multifamily technology allows a buyer to experience the property before it’s built without even leaving their home. This will become the cornerstone of real estate. Just imagine if a building is not offering a virtual tour. One day, that could be laughable. But now, it’s just awe-inspiring.

5. Web 3.0 is completely revolutionizing consumer transactions, including real estate.

Web 3.0 for real estate is upon us. What does this mean? For reference, Web 1.0 mostly involved listing online, and Web 2.0 involved empowering buyers with information about home and apartment listings. Web 3.0 completely revolutionizes transactions; it offers consumers more transparency, certainty, and convenience.

Web 3.0 connects smart devices (cars, mobile phones, appliances, etc.) and decentralized networks (distributed databases, cryptographic keys, etc.) and integrates advancements in machine learning (i.e., Siri, Alexa, or Cortana).

We are transitioning from Web 2.0 to 3.0, which can help various businesses in ways we can only imagine. Web 3.0 can map your property, model floorplans for wayfinding, optimize logistics via geographical models, and more. The possibilities, perks, and cost savings are essentially endless. In the future, Web 3.0 will allow us to ditch our traditional handheld devices for a more immersive one.

6. Is rent-paying with bitcoin the future of multifamily?

The multifamily sector is notorious for being a laggard in adopting new tech. Case in point, there was a time when accepting online rent payments was guffawed at. 

Accepting rent payments in a cryptocurrency (e.g., Bitcoin) is a significant step toward the Web 3.0 future but a scary one for property managers and owners to experiment with. That being said, a shifting consumer behavior suggests that cryptocurrency may hold genuine promise for multifamily property owners.

For consumers and businesses, cryptocurrency is appealing for its strong privacy and user security; it decouples from government-controlled financial institutions, offers transparent record-keeping through blockchain, and removes the “middleman” transaction fees and costs.

The benefits of cryptocurrency go beyond the convenience of financial transactions; it streamlines collection and payment, facilitates secure data sharing, improves operational efficiency, saves time and costs, and provides secure due diligence.

And the role of cryptocurrency will undoubtedly be determined by the millennial factor. What do we mean by this? And what does all of this mean for your property? Well, consider these statistics:

• Millennials make up history’s largest demographic of individuals aged 24 to 39.
• 49% of millennials polled own cryptocurrency.
• One-fifth of millennials are expected to rent, which is nearly double what it was two years ago, according to Apartment List

All of this is to say that multifamily is moving toward a Web 3.0 and crypto future.

A Major Multifamily Technology Transition on the Horizon

It’s only a matter of time before the Internet of Things drastically propels the multifamily industry into a technologically-based operation. The multifamily industry is about to experience a major multifamily technology and Web 3.0 transition through interconnectivity, data-sourcing, and online marketplaces.

When a property can present creative ways to make residents’ lives easier, it can be a valuable form of relationship-building. There is no shortage of property management apps, from sustainability and on-demand services to messaging apps and rewards programs.

Below are some of the best property management apps for this year:

Sustainability Apps to Evaluate Energy Use and Reduce Expenses

1. Wiser Energy Management System

Millennials and the upcoming Gen Zs are increasingly energy-conscious, and who doesn’t love saving money by conserving energy, right? Raising residents’ awareness of your property’s sustainability also conveys your dedication to going green. In short, it’s a form of relationship-building. 

Wiser Energy Management System is a property management app that can be easily integrated into a current thermostat to intake your property’s energy data and output useful graphs to help you evaluate the energy use right from your tablet or mobile device. Not only will residents save up to 30% on utility bills, but property management apps like Wiser can also reduce power outages and the user’s carbon footprint.

2. Code Green

Code Green is a property management app that offers sustainability strategies to help you reduce operations and maintenance expenses to increase NOI and ROI across your portfolio. Whether you want to improve your property’s well-being performance or eliminate carbon emissions, Code Green provides reporting, certifications, and analyses to help you meet your sustainability goals.

Apps to Increase Apartment Leads and Resident Retention

1. PERQ

PERQ offers properties a way to interact with residents in real time without having a dedicated leasing manager interact with them physically. And no, we aren’t talking about canned, automated messages. This property management app uses artificial intelligence and natural-language conversations to engage with residents via email, chat, text, and automated SMS. When a renter is ready to talk to a leasing agent, PERQ transitions them to the onsite team.  

2. Knock

Knock CRM offers a full suite of front-office technology to provide multifamily owners and operators with the tools to maximize NOI, improve efficiency, and guide renters from a lead to a lease.

With this property management app, you can communicate with leads across multiple channels, manage tasks to help on-site staff hit their goals, execute automated marketing campaigns, create a more modern leasing experience, and even allow residents the ability to self-schedule tours.

3. Community Rewards

Community Rewards is a loyalty rewards program designed to make resident engagement and referrals a breeze. This property management app allows multifamily marketing and property management teams to increase resident retention and improve the property’s online reputation through a meaningful rewards program.

With Community Rewards, you can create automated engagement campaigns to offer residents points for completing valuable actions such as renewing their lease, referring a friend, writing a review, and talking about your property on social media.

Resident Apps to Make Convenience an Amenity

Thanks to smartphones, living in an apartment is an entirely new experience than it was just a short time ago. Whether it’s for a more productive lifestyle, a completely new entertainment experience, or just making sure that you get to work on time, many apartment apps out there make for a better apartment living experience. Apps are on the upswing, and many can provide remarkable conveniences to residents — everything from doorstep meal delivery to hassle-free packaging and shipping.

Hardwood floors and resort-style pools are becoming less of a point of differentiation. What residents want are modern conveniences over luxury: charging stations in the lobby, pet amenities, effortless recycling, etc. That’s not to say luxury amenities and high-end finishes don’t matter to residents — just that they’re becoming less of a point of differentiation in attracting residents.

So, how could these apps benefit multifamily properties? Raising residents’ awareness of these property management apps conveys your property’s dedication to providing them with as many modern conveniences as possible. It’s the customer-centric approach that differentiates properties in today’s cluttered environment.

1. Blue Apron

Preparing healthy and delicious weekday meals can be a hassle for busy professionals. Blue Apron is an app that delivers fresh farm-sourced ingredients to your doorstep. What’s their value proposition? Beyond the convenience, Blue Apron is both local and sustainable — two lifestyle trends increasingly important to the millennial and Gen Z demographics.

Whether it’s fresh Japanese ramen noodles or wild-caught Alaskan salmon, Blue Apron sources ingredients of the highest quality from artisans and suppliers. Coupled with fine components, Blue Apron provides comprehensive recipes that allow apartment-dwellers to become expert home chefs by trying new ingredients and cooking techniques every week.

2. Rover

Rover provides a safe and easy way to create a trustworthy pet-care community. This apartment app allows residents to tap their social networks to find friends and neighbors who can take care of their pets. Think of Rover as a digital babysitting service for pets. Payments are all handled within the app, allowing pet owners to set up playdates with other users. As more and more furry residents move into multifamily properties, apps like Rover hold great potential value for residents.

3. Housekeeper

Finding time to clean your apartment can be a chore for the busy millennial generation. Housekeeper is a mobile app that allows you to seamlessly schedule, book, and pay for professional cleaning services. All you need to do is provide a zip code and a few details about your apartment, pick a convenient time, and provide payment information. Booked! It’s as simple as that.

4. Getwashio

In today’s multifamily living, washers and dryers are often an added expense, sometimes requiring several trips to the property’s laundry room. Getwashio is a laundry service that picks up dirty clothes, cleans them, and then drops them off. The convenience? There is no need for residents to leave their apartments. 

Again, for the busy millennial lifestyle, this hassle-free solution to the weekly laundry task can be an invaluable convenience. Getwashio is currently offered only in Chicago, Los Angeles, San Francisco, and Washington D.C., and they’re expanding fast.

5. Zego Mobile Doorman

The above property management apps provide conveniences you can pass along to your residents. But, has your multifamily property thought about improving how you service your residents? Zego Mobile Doorman provides multifamily properties with a streamlined system for managing property tasks. 

Residents can make payments, place maintenance requests, check in visitors, monitor package arrivals, and much more through this mobile application. It also offers several other residents conveniences and amenities, such as booking a taxi, making restaurant reservations, etc. 

The system is wholly customized to your property and your neighborhood. Millennials and the upcoming Gen Z are growing accustomed to these mobile conveniences, and there’s no reason their multifamily property can’t offer the same.

Differentiate Your Property With Apartment Apps

While the real estate industry continues to adapt to the convenience economy, the way renters live evolves. The name of the game is convenience. Even when we’re merely passing these conveniences along to our residents, we’re demonstrating a commitment to making residents’ lives easier. 

Apps are revolutionizing the multifamily market. What’s our recommendation to take advantage? Promote some of these apartment apps on your Resource Page and utilize the property management apps to reduce operational expenses and increase your NOI.

Technology moves fast, as do digital marketing trends. As we live and breathe commercial real estate at our multifamily marketing agency, we understand where the industry is headed.

The following is our breakdown of the current trends in social media, augmented reality, and more — plus where we think the multifamily marketing space is headed in the future.

1. Content still reigns king.

Content marketing certainly is not a new concept and it certainly is not going out of style. By now, most companies know they need to create content that engages prospective customers. However, the question is how to do it more effectively. As the year continues, we will see commercial real estate companies creating more meaningful content than ever before.

As the commercial real estate industry turns to content marketing, the smart ones will be more targeted. The key here is that you don’t need a thousand views per blog. Rather, you only need your target audience to view your content. Once you segment your audience base properly, you can launch individualized advertising campaigns and target those segments specifically. This approach will help you gain more apartment leads and conversions from these retargeting ads.

Truthfully, there’s no way around this. The success of your digital multifamily marketing campaigns will depend on your use of originally created, high-quality custom content — as content continues to reign in the realm of digital apartment marketing.

2. You need to pay to play.

Now is the time to focus your efforts on paid social media apartment marketing. The organic reach across most social media platforms is dying. By investing in paid social media apartment marketing you will increase your engagement and get high organic reach, as well as better search marketing.

With paid social media multifamily marketing, almost all social media networks will give you clear metrics to measure your performance and ROI. Another benefit to utilizing paid social media marketing is the ability to reach completely new target customers and enhance your apartment lead generation. By paying to promote your post, you increase the chances that people might share your content or engage with your organization.

3. Social media for apartments is where it’s at.

Social media has come a long way since its early days of simply sending a message, selfies, or favorite links. It has matured enough to become an effective tool in digital multifamily marketing for engaging with targeted customers on an interactive channel. However, oftentimes those in commercial real estate forget to actually be social on social media.

Unfortunately, many property professionals do not take advantage of social media for apartments. Many times, they don’t reply to the influx of messages on social media. They also don’t maintain a frequent presence or put marketing dollars behind campaigns. Social media is an untapped market for properties to set themselves apart from the rest and can be the difference between turning a prospect into an apartment lead.

4. Instant messaging and chatbots are game changers.

Connectivity is another great advantage of social media. The simple ease of using functions such as direct messaging makes it easier than ever to engage with your residents. However, the conundrum that property managers now face is how to respond fast enough and accurately to prospective residents.

Cue multifamily marketing automation bots, also known as chatbots.

Today’s consumers want to engage with a company when and where it’s most convenient for them. For real estate, this could mean losing possible apartment leads if we are not able to respond to needs instantly. Chatbots seem to have cracked the code, quite literally, on instant communication. According to Botpress, a chatbot is defined as “any software that performs an automated task … the most intuitive definition is that a bot is a software that can have a conversation with a human.”

In addition to being programmed to have realistic, human-like conversations with prospective clients, chatbots are also able to gather specific information relevant to the seller or the marketer.

In the context of commercial real estate marketing, a chatbot can mean providing 24/7, instant responses that do not require an individual behind a screen scrambling to answer a question. Chatbots also provide a smoother user experience for the resident, and user experience is always critical.

5. You need to utilize live video to increase engagement.

Video’s popularity as a multifamily marketing medium continues to grow yearly, and this year is no different. Particularly, live video is where we see social media platforms migrating. Live video contains much more engagement and fares better with many social media algorithms. More and more companies in commercial real estate are recognizing the power of video as a digital multifamily marketing strategy.

There are huge opportunities for leasing agents to really innovate and get away from traditional apartment marketing by utilizing Facebook Live to conduct virtual tours or answer real-time questions. Likewise, property managers can get in on the fun, as they may use Snapchat or Instagram Stories as a way to engage with current residents and alert them to fun events.

6. It’s time to embrace virtual real estate.

Where do we see the future of multifamily marketing efforts? Virtual and augmented reality. As our industry rapidly embraces technological innovations, integrating VR and AR can set you apart from competitors.

Implementing VR elements into your apartment marketing scheme can prove effective when done correctly. Virtual reality opens the door to prospective clients that may have otherwise not been able to see your property, as they digitally tour units and enter a lifelike simulation of your multifamily property. Moving forward, we see this trend taking off as we can expect more and more companies to design 3D commercial real estate models through virtual reality.

Augmented reality is used by multifamily industry thought leaders today. It brings blueprints to life by taking a traditional flat layout and turning it into a lifelike 3D model. AR will provide a unique opportunity at every level of commercial real estate as it continues to evolve. Professionals believe that AR provides great value at the early stages of a construction project, and at the final stages of selling and multifamily marketing.

7. Drones can set your multifamily marketing apart.

Drones are a defining piece of technology for commercial real estate. Just a few years ago, it was conventional to hire a professional photographer for aerial shots of a property. Sellers now are capable of capturing stunning images and breathtaking videos of their property with camera-equipped drones, all while cutting back on costs.

Drones can depict a great layout of the entire property, especially when recording video. For larger areas, the unique benefit that drones provide is navigation beyond the property and into the surrounding area. They are able to capture incredible bodies of water, beautiful landscapes, and nearby neighborhoods. This particular feature can be optimized if paired creatively with live streaming.

Drones also allow high-rise offices to capture images of the entire building along with attractive neighboring hotspots. Drones are one trend guaranteed to set your marketing apart from competitors, and will surely spread within the commercial real estate industry.

What does all of this mean for multifamily marketing?

It’s a game-changing year for apartment marketing, especially in terms of how to reach prospective buyers in your area. Up until now, the marketing landscape has remained more or less the same, with social media for apartments claiming the throne in every corner of influence. However, we are now seeing increasingly fast-paced developments in the form of new and updated features such as live streaming and instant messaging. 

What does all of this mean for multifamily marketing? Put simply, it means that content will have to be creative and engaging in order to gain more activity online. Are you ready to get creative?

How the Convenience Economy Is Impacting the Multifamily Market

In today’s fast-paced world, the convenience economy is revolutionizing how we live, work, and interact. As technology advances and our lifestyles evolve, the demand for convenience has become a significant driving force across various industries, including the multifamily apartment market.

The Convenience Economy

The convenience economy is a term that describes the rise of peer-to-peer service platforms like Uber and Airbnb. In other words, it’s a shared economy, changing how we travel, communicate, and purchase.

Below are a few examples of how the convenience economy has affected the multifamily market:

On-Demand Services and Amenities

The rise of the convenience economy has given birth to many on-demand services and amenities that cater to residents’ desire for effortless living. From package lockers and laundry services to dog walking and grocery delivery, multifamily properties increasingly integrate these conveniences into their offerings. By partnering with service providers or implementing in-house solutions, property managers can enhance resident satisfaction and differentiate their communities in a competitive market.

Smart Home Technology

One of the key manifestations of the convenience economy in multifamily apartments is the widespread adoption of smart home technology. Residents now seek apartments equipped with smart thermostats, voice-activated assistants, and connected devices that offer seamless control and automation. Smart technology not only enhances convenience but also promotes energy efficiency and sustainability, further aligning with the preferences of environmentally-conscious residents.

Co-Working Spaces and Remote Work Support

The convenience economy has also reshaped how people work, with a growing emphasis on remote work and flexible schedules. Multifamily properties recognize this shift by incorporating dedicated co-working spaces, high-speed internet connectivity, and business centers within their communities. Property managers can attract professionals who prioritize convenience and work-life integration by providing work-friendly environments and amenities.

Digital Platforms for Resident Services

In the convenience economy, digital platforms enhance the resident experience. Property management companies leverage technology to streamline communication, facilitate rent payments, and provide online maintenance request systems. By offering user-friendly platforms and mobile apps, property managers can improve convenience and accessibility, ultimately fostering resident satisfaction and loyalty.

Location and Access to Essentials

Residents increasingly prioritize proximity to essential services and amenities as part of the convenience economy. Multifamily properties strategically located near grocery stores, restaurants, fitness centers, and public transportation gain a competitive edge. Proximity to these conveniences allows residents to save time and effort, contributing to an enhanced quality of life.

Embracing Convenience to Thrive in an Evolving Landscape

Convenience technology is not a fad; it’s a shift. The convenience economy has become dominant, shaping the multifamily apartment market and influencing residents’ expectations. Property managers must embrace the changing demands and integrate convenient solutions into their offerings to thrive in this evolving landscape.

If your residents use an app service like Washio, why spend thousands of dollars on a laundry room in your complex?

Take the time to research and find the apps that your residents are using and what’s trending. You may find that you can allocate additional funds to the amenities your residents want rather than what is speculated to be most important.