Allegion's New 2023 Multifamily Living Trends Report Unveils What Multifamily Renters Desire, Expect and Are Willing to Pay More For in Their Residences
PRNewswire 19-Sep-2023 8:00 AM
Survey details what top multifamily property owners and operators need to know to attract and retain today's renters
CARMEL, Ind., Sept. 19, 2023 /PRNewswire/ -- Today, Allegion U.S., a leading provider of security products and solutions, unveiled the results of a new multifamily living trends survey that provides insight into preferences and expectations of today's renters. The report, "2023 Multifamily Living Trends: A Study on What Multifamily Renters Desire, Expect and Will Pay More For in Their Residences," analyzes input from over 1,000 survey respondents who currently rent or own multifamily residences or plan to in the next two years.
Beyond the value of safety, residents' peace of mind and the rise of mobile access control, the survey shows how COVID-19 and the influx in Proptech have accelerated the adoption of new technologies and amenities designed to enhance the lifestyles of today's renters.
In 2019, Allegion conducted a similar study, providing a benchmark for living trends among millennial renters. Over the last four years, the multifamily landscape has changed in significant ways – both for renters and property owners, alike: the increased adoption of smart home technology, re-prioritization of amenities and new preferences in leasing and communication are evident.
"Multifamily has always been a dynamic market as result of changing lifestyle behaviors and introduction of new property technologies," said Connie Alexander, senior manager for primary research & insights at Allegion. "Our research reveals that we are witnessing the impact of Proptech adoption and lifestyle changes following the pandemic. It's important for property owners to take note of these shifts to best allocate short- and long-term investments in their properties that will help attract and retain quality residents."
The key trends and challenges examined in the report are outlined below:
- Impact of Proptech on Multifamily Residences — In 2021, $24.3B were invested into Proptech companies globally, with a focus on the multifamily market. Proptech can help attract responsible, high-quality residents and provide enhanced and safer cross-property amenities, lower operating costs and increase revenue.
- 61% of survey respondents said they are comfortable using Proptech. Smart locks, resident portals and cameras were included in these preferences.
- According to the survey results, 51% of renters who make more than $100,000 per year view smart home technology as a need-to-have amenity, and 48% of those same renters view Proptech as a must-have.
- More than one in two respondents would be willing to pay one to 10% more for property technology and nearly three in 10 would pay at least 11% more.
- The Rise of Mobile Access Control — With most of the population having access to smart phones the rise of mobile access control provides renters with a convenient and secure way to access different parts of their multifamily property.
- Over 59% of respondents would likely select a future place of residence if it had mobile access control offered as an amenity.
- Compared to the 2019 study, there was an 82% increase (to 34% from 19%) in the number of respondents who would be willing to pay more for mobile access control that would allow them to remotely monitor entry of their home and give access to guests and others.
- Amenities That Attract Based on New Behaviors — COVID-19 had a profound and lasting effect on consumer behavior and lifestyles. Multifamily residents are no different. According to Pew Research, 70% of individuals will continue with the at-home habits they adopted during the pandemic.
- When asked about considerations for a future place of residence, respondents ranked free Wi-Fi as the most important amenity, behind affordability and proximity to work and school.
- Among those working remotely (15% remote, 20% hybrid work lifestyles among respondents), fast and reliable Wi-Fi is the most important factor when looking for a place of residence.
- Home security systems, smart home technologies and upgraded building materials ranked more important overall than fitness centers and pools.
- Value of Safety and Resident Peace of Mind — According to the 2021 World Risk Poll by the LP Foundation, 37% of people in the U.S. feel less safe than they did just three years ago.
- Fewer than one in three respondents feel secure in all areas of their home, and about one in five do not feel secure in the basement, living room and/or patio.
- Up 140% from 2019, 22% of respondents currently use electronic door locks that are connected to the internet.
- And up 91% from 2019, 23% of respondents currently use electronic door locks that are not connected to the internet.
- More than one in three respondents would be willing to pay more for smart doorbells with video, outdoor cameras and mobile access control. Six in 10 would pay between one and 10% more per month for these added security features.
- Only 19% of respondents are comfortable giving their family and friends access codes or keys to their unit. However, 47% are comfortable hiding keys to their apartment around the exterior of their home in the event they get locked out.
- Leasing Preferences That Convert — A survey released from the National Apartment Association's Apartmentalize 2022 conference found over 60% of property managers cite creating efficient day-to-day operations as one of their top three challenges. Efficient communication with prospective and current residents can enable a positive ROI and a differentiating experience for renters that results in increased attraction and retention.
- 16% of respondents noted inattentive property management as a top three dealbreaker when considering a future place of residence.
- More than three in four respondents are at least somewhat comfortable with all four self-guided tour scenarios below, and less than 10% are either somewhat or very uncomfortable with them.
- Taking a self-guided tour that allows you to freely explore a community
- Taking a self-guided tour with detailed instructions on what you can explore
- Living in a community that allows potential tenants to explore the area on a self-guided tour
- Taking a self-guided tour and having the ability to immediately sign a lease before leaving
- According to the survey, residents with incomes of over $100,000 per year are statistically more comfortable navigating self-guided tours and signing a lease directly following.
- When asked how valuable different amenities were in a future residence, a streamlined resident portal app was ranked number one with 39% of respondents saying it was a must-have and 50% a nice-to-have.
To learn more about how Allegion supports multifamily properties of all sizes, visit us.allegion.com or contact a dedicated multifamily property consultant. Allegion's consultants are trained in the specific needs of Proptech and multifamily access control and can help assess a property's unique needs and help identify the right solutions and partners for the property.
Data Source: Allegion. Survey of 1,009 individuals ages 22-39 who currently rent or own multifamily residences or plan to in the next two years. Online blind survey; to qualify, respondents could not work in security manufacturing, security, market research, access control, or multifamily real estate; conducted April through May 2023.
Allegion (NYSE: ALLE) is a global pioneer in seamless access, with leading brands like CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Von Duprin®. Focusing on security around the door and adjacent areas, Allegion secures people and assets with a range of solutions for homes, businesses, schools and institutions. For more, visit www.allegion.com.
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SOURCE Allegion US