Though it might sound strange with the year 2020 being such a turbulent time period for just about every industry, in general, the housing market has been highly supportive and resilient with the pandemic hardships. A lot of it has to do with the fast-thinking actions and innovation implemented by general contractors and developers to keep it afloat. This, in addition to the record low mortgage rates, has kept the buyer demand going strong. The only real concern is the lack of housing available to buy right now due to some new construction being pushed to later finish dates.
If there is one area that got hit the hardest within the housing market, it was multifamily setups. The immediate drop was caused by the loss of about 25 million jobs from February to April, causing renters to decide whether to get roommates or downsize due to lack of income. Overall, Class C properties that have downscaled apartments have been troubled since 2020, whereas the single-family housing designs did very well and a lot of it is a direct cause of uncertain times and strives to stay socially distant from others right now.
2021 Design Alterations
With the nature of housing always changing, there may be a race to future-proof multifamily designs to withstand those said demand alterations without needing to uproot the entire layout over and over again. To do this, owners may strive to embrace a more flexible, modularity approach, such as developing interior movable walls. Doing this would save time and money in re-structuring to keep up with modern expectations and still provide a safe, comfortable space for the residents. In summary, it is a great way to respond to changes and adjust faster.
Striving for Amenity Attraction
Not every community includes pools, public spaces, or shared assets like laundry rooms. However, investing in such can be the way for multifamily homes to surface a competitive edge and retain tenants. Property owners might begin investing in attractive features that can reduce the cost for tenants overall to address the demographic shifts.
This would not be a complete prediction article without the undeniable reality that technology is going to be leveraged. Again, with the amenities and attraction features, adding in new advanced technologies to modernize multifamily homes can give it that competitive advantage well into the future. And with virtual reality growing, it is likely you will see more virtual tours available within these units to give people the ability to house hunt without the worry of leaving their current home, making the process a more seamless transaction.
2021 is creeping up fast and there is a good chance that in this upcoming year, many families are going to continue to stay put due to the uncertainty of the economy. They may also decide to wait until the dust settles with the pent-up demand for new construction before tapping into new housing themselves.
On a brighter note, leveraging technology and hosting virtual tours could very well be the asset to help the multifamily market to gain momentum.