As the momentum in new construction slows down, it’s time to take a breather and redirect our focus toward something equally thrilling – renovations! In this blog, we’ll delve into why renovations are the next big trend in the housing industry and explore ways to stay ahead of the curve in 2024.
The Current Landscape:
The new multifamily construction boom slows down, and renovations rise as interest rates and lack of single-family home inventory drive the continued need for rental options in many communities across the country.
Outlook for 2024 – “Freddie Mac multifamily 2024 outlook projects an expected gross income growth of 2.1% for the year” (1)
Now is the time to move forward with renovations to stay competitive with the onslaught of new multi-family housing that occurred post-pandemic, with many projects slated to complete in 2024.
Designing For Tomorrow:
- Think lobby designed like a business travel focused hotel.
- Think model apartment set up for work from home
– 79% of remote capable workers are remote or hybrid while only 21% work on-site full time (2) - Think Gen Z (3)
To stand out in a sea of apartments, thinking creatively is essential. Imagine a lobby like a business- hotel, model apartments tailored for remote work, and spaces designed with Gen Z in mind. The key is to offer multi-functional amenities, maximizing every square foot and appealing to the diverse needs of tenants. Finding a design partner that can get creative with existing conditions and maximize impact with lighting, FF&E, and artwork is key to upgrading without major disruptive renovation.
Thought starters in 4 key areas for creating purposeful design in multi-family housing:
1. FUNCTION
- Heads down space
- Plenty of plug-ins for charging
- Flexibility from day to night use
- Consider glare/lighting details
- Acoustics – layering soft elements (area rugs, upholstered furniture, window treatments, ceiling acoustical elements)
- Availability of snacks & drinks (coffee bar)
- Consider backgrounds for Zoom calls
- Amazon delivery accommodations in the mailroom
- Apartment size to include space for traditional desk
- Use of casegoods, like Kimball Alterna, in apartments for unit turns
– faster, easy installation, tax depreciation benefits
2. EXPERIENCE
- Memorable common spaces with bold design choices
- Access to concierge team
- Great Wi-Fi
- Automated services & access to various amenities through technology
– Key alternative – mobile access to rooms, fitness room, mobile pay for snacks, coffee, and optional upgraded services like onsite drop-in childcare, dog walkers, cleaning services - Universal design considerations
– Main audience is Gen Z, but consider all potential ages
– Older adults
– People with young children
– People with different abilities
3. SUSTAINABILITY
- Water bottle filling stations
- No throw-away plastics in café spaces
- Use of recycled materials
- Electric vehicle charging stations
- Car sharing availability
- Community garden
– Sharing veggies & herbs with neighbors
4. WELLNESS
- Outdoor spaces
– If in more urban area utilize rooftop space
– Consider weather
– Offer shade
– Outdoor power
– Year-round use with heaters
– Multiple seating options for various needs - Bike rentals in spaces with safe access to trails or bike lanes
- Consider on-site massage partnering with a local massage school for discounted rates
- Peleton subscription included in rent
– Bikes in fitness room with views no views are available, use murals of nature scenes as the second best option and simulate natural lighting when windows aren’t optional - Community building event planning
– Weekend meal-prep or cooking class event in open kitchen space
– Volunteer opportunities- Collect donated items and deliver to local food pantries or clothing
- Tutoring
- Knowledge sharing
– Language
– Knitting/sewing
– Cooking
By focusing on purposeful design in multi-family housing, you’ll attract new tenants and create a community that stands the test of time.