Builders/Developers That Are Investing In Apartment/Condo Complex Amenities - Trends and Reasons
The housing market is changing and rental occupancy is at the highest it has been in 30 years. As young people decide to stay in urban areas longer than previous generations, their needs are changing too. Renters want spaces where they can raise families or make an extra buck. Many of their new demands include 24-hour fitness centers, yoga or meditation studios, e-commerce delivery areas, connectivity, dog parks, restaurants, conference rooms, cafes and shared office spaces. Below is a look at these trends, why they are happening and why developers and builders are following them.
Right now, rental occupancy rates are the highest they have been in 30 years and the rate of population growth in the city is outpacing that of the suburbs for the first time in 100 years. These two factors say that Americans are choosing to rent over owning and that they are coming into the cities, most likely for better-paying jobs. The great recession took much of America down with it, but now America is dusting itself off and taking on a new shape. Savvy developers and builders are catching on to these trends and working to bring new city dwellers the amenities they want at affordable costs.
WHY DEVELOPERS AND BUILDERS ARE LIKELY TO FOLLOW NEW TRENDS
Builders and developers are investing in apartment and condo amenities for the following reasons:
1. To quickly attract and retain renters and buyers.
2. Increase the value of the finished property.
3. Save on overall space and costs.
In order to achieve the first objective, developers and builders have to stay on top of changing trends. As new generations enter the workforce, new types of accommodations are going to be desired.
Regarding the second objective, beauty or value is in the eye of the beholder and the more beholders one can attract the higher the value. The more sought-after space is, the higher it will be priced. The developers and builders that can figure out what new residents want stand to receive the highest returns on their investment.
The third objective for developers and builders is one of the most important. Investors need to know the costs, how much is at risk, and how much of that investment will be returned. Having amenity spaces will draw in people and save space on having to provide larger apartments since families are staying in cities for longer.
WHY RESIDENTS WANT AMENITIES AND WHAT THEY WANT
There are a number of reasons that people want amenities. Concerning the region of Columbus, Ohio, one of the main reasons to offer amenities is to make living in Columbus, Ohio more attractive than a place like Seattle, Washington. Many families with jobs in the technology arena are crammed into one-bedroom apartment spaces, due to the affordable housing shortage on the west coast.
Areas like Columbus, Ohio can greatly benefit from these situations by constructing communities and workplaces that these people can affordably move to and flourish in. Some things that these alternative city-goers are looking for are larger living spaces, as well as recreational spaces. As the city housing market now stands, much of it is configured to hold one to two-person residences. The issue here is that millennials are having children and not moving to the suburbs, many of them are single parents, or both parents have to keep their high paying jobs. The recreational spaces in a multi-family unit allow developers to save on a certain amount of space within each unit while offering enough room for a family.
Young people are staying in the cities longer and raising their families there. Millennials and generation X’ers are more health conscious and environmentally-conscious than the generations before them. They are looking for living spaces in the city where they can interact with their community, keep fit, find peace, and have easy access to the things that they want. Some of the top amenities these renters/buyers want:
Another reason renters and condo buyers are looking for amenities is that they are looking to use the space as income for themselves. It was reported that about half of millennials looking to rent or purchase condo space want to put the properties on the short-term rental market. Ideally, they plan to use services like Airbnb to either apartment share or just to make a bit on the side when they are out of town. Spaces with more hotel-like amenities are going to attract these buyers/renters since short-term renters that would otherwise stay in a hotel will be drawn there.
The housing market is changing, families are staying in cities and renting longer. They are wanting more for their dollar. For that reason, developers and builders are following suit. Developers and builders want to follow the trends so that they may stay profitable. New renters want more reasons to remain renting and in the city. The new amenity trends are 24-hour fitness centers, yoga or meditation studios, e-commerce delivery areas, connectivity, dog parks, restaurants, conference rooms, cafes and shared office spaces.