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Reading Room Articles
Apartment Market Forecast: What do 21st Century Renters Want?
Apartment complexes are springing up faster than we can snap our fingers, and most of them have established high occupancy rates before the construction crews have even pulled away. This isn't to say, however, that just building a complex ensures a horde of googly-eyed residents knocking at leasing office doors. During the recent International Builders' Show in Dallas (sponsored by the National Association of Home Builders), a panel of speakers discussed the paradox faced by multifamily housing developers today. While the United States is experiencing a renewed interest in apartments -- particularly in major metropolitan centers, where complexes continue to be built in record numbers -- builders find themselves in the era of the "never-satisfied customer." In the 21st century, customization rules.
Panelists discussed how successful multifamily developments will evolve in the future based on economics, demographics, and lifestyles. According to consultant Jennifer Nevitt, apartment-dwellers are drawn to self-service -- amenities that allow them to make choices and take care of their own needs. While some of the "extras" might seem minor, they represent quality of life factors that, when combined, can become major issues -- as well as critical decision-makers or breakers for prospective renters.
Nevitt named seven major quality of life issues that will determine where renters choose to hang their hats in the 21st century. While all of these amenities make residents' lives easier, a lack of money means that developers often must choose the top most important elements they will offer.
- Washer/dryer connections, full-size -- not stackable. "Residents want to be able to do their laundry with their hair up in rollers and to be able to do several things at once," Nevitt said. And simply having on-site laundry facilities isn't likely to appease tomorrow's residents, either. Packing up one's laundry and heading to a separate facility represents an interruption -- yet another hassle on our growing "to-do" lists.
- Sufficient hot water. It's one of the number-one complaints of renters everywhere. "Residents want to be able to do their laundry, do a load of dishes, and take a hot shower all at once," Nevitt said. Yet the water heaters in many apartment complexes remain undersized and inadequate for our demands.
- Sound and privacy. How many of us have sat in our living rooms listening to our neighbors' music downstairs? And far too many renters know the frustration of trying to sleep while listening to a neighbor in an adjoining apartment carrying on a conversation or listening to a television with the volume cranked. By the same token, residents want to be assured they may carry on conversations in the privacy of their own apartments without next-door neighbors taking notes. Also important are entryways, which should, according to Nevitt, offer some degree of privacy.
- Security. It's more important than ever, and particularly for residents who live alone. For starters, renters want to see a gate around the community they're considering (a gate that remains closed, that is, and demands a keyed-in password or card entry). Security telephones, private alarm systems, peepholes, and cameras strategically placed around the complex are also big sellers. If you're willing to dig deep within your pockets for your next apartment, some of the more luxurious properties offer small television screens by front doors, or an option which allows residents to turn their standard televisions on a particular channel to find out who's waiting behind the door. Most complexes offering private alarm systems will connect them to the local police department for an additional monthly fee. And for an increasing number of us, it's worth the expense.
- Natural light. According to Nevitt, builders are constructing larger and larger windows because consumers demand them.
- Parking/vehicles. This includes extra parking availability for guests. For developers, this is a critical issue because of the exorbitant land costs in many markets.
- Package/mail access. It doesn't sound like much at first, but consider this: You arrive home late one evening and check your mailbox. There's a parcel inside, notifying you that the leasing office has your package. The problem is, it's Thursday, tomorrow's a holiday, and the leasing office is closed. You're not in control of your own destiny. "Most specifications that we're using today are 20 to 25 years old," Nevitt said. "With Internet and catalog commerce on the increase, packages have become bigger." Not only do residents' mailboxes need to become larger, but developers are currently considering such options for residents as designated mail kiosks or larger "package boxes" to which mail carriers and residents have access (although how specific residents will gain access remains to be seen).
Nevitt also described the hottest apartment trends leading into the next century:
- Internal: Larger-sized units. This means more bedrooms -- quite a surprise for builders who went on a one-bedroom building frenzy only a decade ago because they were convinced that multiple bedrooms wouldn't rent. Today, however, three-bedroom units are often claimed before they can even be built. Residents also want larger bathrooms, more island kitchens (galleys, says Nevitt, are the most functionally obsolete variety of kitchen design). And at least one solid, unbroken bedroom wall should be a minimum of 13 feet long. Too many residents have discovered (only after moving in) that their furniture didn't fit in their bedrooms. And sliding-glass doors are not only obsolete, but dangerous. Despite the extra up-front cost, developers will be surprised, Nevitt says, by the added value and quality that a regular door -- French or otherwise -- brings to an apartment unit.
- External: At least one exterior material should be used. This can include pine, brick, stone, or cedar, for example. Red brick is the least-dated of all four of those options and shouldn't go out of style any time soon.
- Common areas: Personal gardens are big. At Jefferson Gardens, a JPI property in Richardson, Texas, all 38 plots in the complex's common area were reserved within 21 days after opening.
Developers who incorporate as many of these quality-of-life boons as possible are going to reap the rewards of a new generation of renters who pay rent not because they have to, but because they've made apartment living a lifestyle choice. Giving residents a little luxury -- and plenty of choices thrown in for good measure -- is going to keep them happy and ensure a steady flow of traffic from renters who prefer the convenient way of life that a consumer-oriented development provides.
Written by Courtney Ronan
Copyright © 1998 Realty Times. All Rights Reserved.
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