Hot Topics and Trends Shaping the Multifamily Market

development

January 14, 2022

There are multiple multifamily conferences every year, including those hosted by Bisnow, Marcus Millichap, and many others. It is impossible for developers to attend all these events; however, it is imperative to stay on top of trends which will attract and retain tenants, which affects profitability.

The following is a summary of the DFW Bisnow Multifamily Annual Conference- November 2021

Panelists consisted of major players in the industry: 

JPI, Cortland, Kor Real Estate, Greystar, Bright Realty, Douglas Elliman Texas, Hitchcock Design Group, Mill Creek Residential, RREAF Residential, and others.

Local and National Trends Shaping the Multifamily Market

  • Migration of people moving to Texas seeking high-rise living – Over 40 high-rises built in DFW since 2014 (mostly Dallas market)
  • Ultra-Luxury multifamily – affluent residents willing to pay upwards of $8 PSF for upgrades in apartments such as upscale kitchen/appliances
  • Urban vs Suburban – after COVID, people still want to live in urban environments 
  • Mixed Income Housing needed – more complex in nature due to needed tax credits and partnerships with other organizations to make it work. Columbia Residential out of Atlanta does an outstanding job on these type projects; they have completed several successful mixed income projects in Fort Worth, TX.  www.columbiares.com 
  • Make it “sticky” for residents – build a reputable brand for your developments by focusing on the right things which target your demographic; use social media in marketing

New Urbanism Movements of Multifamily

Ideal planning for Urban Multifamily is based upon the “Fifteen Minute City”

Putting people at the center of urban transformation; most needs can be met by walking or biking in 15 minutes (www.15minutecity.com).

This means fewer cars in urban environments and more walkability needed. Ride-share lounges are needed, along with parking on property or city street for ride-share, visitors, food deliveries, etc.

Vendor access into building – a big concern for residents

The growing demand for services such as dog walkers, laundry, IT, food delivery etc. Requires easy, but secure access into resident buildings.

Hotels and office buildings being converted into housing

Research must be conducted to determine demographics, hit gaps in market, and monetize it.

Cities still do NOT understand Multifamily

New Urbanism Movements of Multifamily
Outdoor area with WIFI connectivity and landscaping

Difficult to deliver anything under 500 SF, which can be popular with the Millennials. Always zoning challenges and of course, NIMBYISM. We need to do a better job being proactive with educating and informing city officials and neighborhoods. Community Design/Fort Worth is doing just that- part of their mission is to engage the public in dialogue about key issues and opportunities BEFORE a project is involved. www.designfortworth.org  

More outdoor areas with WIFI connectivity needed

Trends in WFH/SFH are still in place. Landscape Forms –“Structure” furniture offers a great solution for these areas. www.landscapeforms.com 

New Urbanism Movements of Multifamily
Porch potties for dogs

Porch Potties for Dogs

Very popular in urban areas. DoggieLawn.com has real grass!! What will they think of next?

(Revenue Add Opportunity for developers!)

What do Residents Really Want?

If tenants do not get their needs met – they move!

  • Good quality lighting in units
  • More balcony space in units
  • Technology that is convenient and simple to use – people suffering from “app fatigue;” needs to work consistently throughout units and common areas.
  • High speed internet is a big deal – they will pay for it; owners can buy wholesale and sell just under market rate to residents. (Revenue Add Opportunity for developers!) 
  • Smart Home technology they expect it and will pay for it. (Revenue Add Opportunity for developers!)

Generational Designs stays informed on current trends to create solutions that address and optimize profitability for developers of luxury multifamily communities in Texas. To explore how you can benefit from this opportunity, book a Complimentary Initial Consultation with us below.

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