Allegion Report Unveils What Renters Want, Expect and Are Willing to Pay More For
2023 Multifamily Living Trends report details what multifamily property owners and operators need to know to attract and retain renters.
CARMEL, Ind. — Security products and solutions provider Allegion U.S. 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 more than 1,000 survey respondents in April and May 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,” the announcement says.
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,” says Connie Alexander, senior manager for primary research & insights at Allegion, in the announcement.
“Our research reveals that we are witnessing the impact of Proptech adoption and lifestyle changes following the pandemic,” she says. “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.”
Impact of Proptech on Multifamily Residences
- In 2021, $24.3 billion 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.
- More than three out of five survey respondents (61%) said they are comfortable using Proptech. Smart locks, resident portals and cameras were included in these preferences.
- More than half (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 up to 10% more for property technology and nearly three in 10 would pay at least 11% more.
The Rise of Mobile Access Control
- 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
- 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
- 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.
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