industry insights

The impact of COVID-19 on Multifamily

The year 2020 has shifted lifestyles and industries across the globe. In the world of multifamily, lifestyle and industry intersect, resulting in strong impacts on apartment communities. With changing resident values and new trends in renewals and leasing, the landscape of multifamily has a new look.

THE IMPACT

The home office has become commonplace for the majority of renters. Instead of having daily commutes, residents are taking meetings and tackling professional responsibilities in the comfort of their apartments. From high-rises to garden-style communities, many renters felt they had ample room to conquer their jobs. However, common requests included outdoor space, built-in office features, open space for exercising, and additional storage.

working from home

Percentage of households that will permanently work solely from home or more at home

MID-RISE

HIGH-RISE

GARDEN-STYLE

How Households Thought about their apartment space differently

Garden Style High-Rise Mid-Rise Mixed-Use Townhome

“Space was adequate during the quarantine."

“More outdoor space. (patio, balcony)"

“More working space such as desk or countertop/bar."

“More open space to exercise.”

“More storage space for supplies and work material."

“More entertainment space for gatherings."

THE CHALLENGES

23%

Wish management could have continued completing non-emergency maintenance requests

57%

Disappointed they couldn't access amenities as easily as before the pandemic

21%

Prefer to interact with staff in person rather than phone and/or email

24%

Disappointed that services were restricted or cancelled during the pandemic

20%

found internet connectivity to be slow or nonexistent

WHAT DO RESIDENTS VALUE?

Resident values are a driving force behind leasing decisions. In 2020, location was top of the mind for renters followed by interior features and floor plan layouts. With surroundings being of the utmost importance, many felt proximity to work was a top priority followed by overall walkability and convenience.

what people believe in value

Community style was a strong factor in determining location preferences. Renters in high-rise buildings prioritized walkability and convenience more than those in garden-style apartments, while residents in garden-style communities and townhouses valued proximity to family more than those in high-rise, mixed-used, and mid-rise communities.

WHAT IMPACTS THE DECISION TO RENT?

70%

PROXIMITY TO WORK

63%

OVERALL WALKABILITY
CONVENIENCE

27%

PROXIMITY TO FAMILY

14%

PROXIMITY TO PUBLIC TRANSPORT

12%

PROXIMITY TO SCHOOLS

PROXIMITY
TO WORK

70%

PROXIMITY TO
SCHOOLS

12%

63%

OVERALL WALKABILITY
& CONVENIENCE

27%

PROXIMITY TO
FAMILY

14%

PROXIMITY TO PUBLIC
TRANSPORT

WHAT IMPACTS THE DECISION TO RENT AN APARTMENT? (BY PRODUCT TYPE)

LEGEND

HIGH-RISE

MID-RISE

GARDEN-STYLE

MIXED-USE

TOWNHOUSE

TO RENEW OR NOT TO RENEW

To renew or not to renew is the question on the tip of many residents' tongues. In light of COVID-19, new factors are impacting this decision. Results have shown that renters in high-rise and mixed-use communities are more likely to move to larger apartments. Additionally, rental rate is the leading factor impacting renewals followed by the financial impacts of COVID-19 and renewal length.

FACTORS THAT
IMPACT RENEWAL

54%

RENTAL RATE

21%

FINANCIALLY
IMPACTED BY
COVID-19

21%

RENEWAL
LENGTH

THE AMENITIES THAT MATTER

Amenity preferences are constantly shifting, especially in the year 2020. Across the board, communities felt outdoor space, in-unit washer and dryers, and secure building access was necessary within communities. Additionally, communities believed alarm systems, sun exposure, package delivery services, touchless entries, sanitation teams, and recycling programs should be provided.

A Shift in Resident lifestyle

With societal change comes an adaptation in lifestyle. Renters across the country have adjusted their daily lives to fit a new norm. A high increase in online ordering, desire for larger spaces, and amenity preferences all signal a conclusive shift in renter behavior.

Households were likely and highly likely to order online

41%

Grocery

51%

Take-out/food delivery

70%

Online Retailers

changes to lifestyle that households plan on making

Increase in online ordering and delivery services

Open Table

Change in Seated Diners from Phone, Online, and Walk-In Reservations

Community Mobility

Retail

Residents in High-Rise and Mixed-Use Communities are more likely to seek larger apartments in less dense neighborhoods

Highly Likely

Likely

Neutral

Unlikely

Highly Unlikely

People in high-rise and mixed-use communities are more likely to use amenities and services more often

Highly
Likely

Likely

Neutral

Unlikely

Highly
Unlikely

new values are shaping multifamily

Current events have fueled a new set of renter values that have shifted priorities when seeking apartments. Cleanliness is top of mind as the majority of households consider a dedicated sanitation team a priority in their search.

59%

9.5%

31.5%

% of Households who valued having a dedicated sanitation team as a priority

High Priority

Neutral

Low Priority

59% of renters considered having a dedicated sanitation team is high priority

The Future of Leasing

While virtual tours and other online resources attract prospective renters, the majority of people are unlikely to sign a lease without an in-person tour. With only 13% of renters likely to rent an apartment without a visit, offering self-guided tours and in-person leasing are still highly relevant.

in-person leasing is still relevant

If you were renting an apartment home, how willing would you be to rent online without visiting in person?

40%

Highly
Unlikely

29%

Unlikely

Highly
Likely

Likely

18%

Maybe

69%

of households are unlikely to rent an apartment home online without a visit to the community