Today, people are working from home at least some of the time. This explains why they are moving from match-box-sized apartments in cities to suburban multifamily homes that offer more space and reduce feelings of isolation.
According to CBRE, U.S. multifamily investments are expected to reach $148 billion by 2022. And a steady growth in the development of such building projects, which was temporarily disrupted due to COVID-19, is also on the cards.
As the popularity of multifamily homes rises, property managers need smart home technologies to ensure that their listings stand out from that of competition.
To make your multifamily property more attractive to investors and renters, here are the top tech-related trends of 2022 to be mindful of:
Expect more tech innovations in multifamily apartment buildings
Further advancements in the adoption of technologies in apartment buildings, specifically more growth in the in-unit technology, can be expected in 2022.
Already, 62% of apartment owners are keen to install unit-level smart home devices, such as smart locks, lighting, and electronic billing, according to a survey from National Apartment Association.
There is also an inclination towards creating a “Smart Community” as opposed to the “Smart Apartment”. The resultant intelligent communities will deliver site-wide system efficiency, better resource allocation, and greater accessibility and connectivity.
Smart home tech set to power asset protection
Smart home technologies will continue to be a relevant asset protection tool.
You will find smart HVAC and water management solutions continuously and automatically track your system health for faults and inefficiencies and diagnose issues in real-time. So, they help mitigate risk, or better still, prevent issues from cropping up in the first place.
For example, a new-age property automation platform that runs regular HVAC system health checks will identify any drop in power efficiency. And, then, it will immediately assign a maintenance crew to fix the issue before it becomes a costly problem.
Smart home tech turns the erstwhile reactive maintenance model into a more proactive one.
New expectations around smart tech as a resident amenity
In the wake of the pandemic, smart technologies are expected to offer greater safety and work-from-home amenities for residents of multifamily units. No wonder, touch-free technologies that facilitate keyless entry and smart elevators and lights are gaining traction.
With the growth in online shopping, smart lockers (that enable zero human interaction when picking up packages) are also a good addition to your smart home tech stack.
According to PointCentral’s Persona Customer Research Study, 1 in 3 renters “wish” that their current or next property includes several smart home devices. Of these smart tech advocates, 45% prefer to have a smart door lock, 38% expect a video doorbell or peephole camera, and 36% would like for their home to be fitted with a smart thermostat.
Residents, operators, and asset owners are also demanding the integration of smart tech with their preferred devices or platforms.
2022 is set to be an exciting year for tech innovation in the multifamily space, especially as the requirement for smart tech is seen to be cross-generational. Gen Z and Baby Boomer residents are equally keen on it, owing to the degree of convenience and flexible living that it offers.
Adding to its allure is the fact that proptech increases rental value. So much so that multifamily rental with smart technologies can drive a rental premium of more than $20 per month. This can go up to an average of $39 per month for tech-up properties situated in large metro markets.
What’s more, our research shows that such tech upgrades also increase the desire amongst over half (56%) of the renters to renew their lease.
Clearly, the ROI on smart tech is phenomenal.
So, if you’re a homeowner, be sure to invest in multifamily home automation technologies today.