What’s in store for multifamily in 2014? That’s the billion-dollar question. To come to some sort of understanding about what the future holds, ironically, we need to take a look back at 2013.
- The demand for multifamily rentals in 2013 was unprecedented and housing providers had a hard time keeping up. The first and second quarters of 2013 saw a growth in new construction. And as these projects got underway they added new jobs in the construction segment at a rate of around 1,110 jobs for every 1,000 apartment units built.
- By the third quarter of 2013, 90% of U.S. cities have reported a boost in real estate prices across the board, outpacing previous national averages.
- One of the elements fueling growth is the recent boost in job growth, with the overall unemployment rate falling to 7% as of November. This means less people living with their parents or in other emergency housing and more qualified renters in the market for an apartment.
2014 AND BEYOND
Back to our original question—what’s in store for multifamily in 2014? Using the data from 2013, we’ve put together a list of trends to help keep you ahead of the curve.
Renting will become even more appealing. Housing prices and mortgage rates are going up, causing fewer people to buy. On the other hand, the increase in multifamily construction will add to the supply of apartments in 2014. With many of these being located in fast-growing cities, these apartments will likely be favored over single-family homes for many young adults.
People love their pets. Between now and 2018, the number of pet owners is estimated to increase by around 12% from 82.5 million to 92 million. Instead of banning pet ownership, you can tap into this growing trend and welcome pet owners to your community.
Tablets and smartphone sales are increasing. According to Forbes, 87% of electronic device sales will be tablets and smartphones. Remarkably, these mobile devices are slated to outsell desktop and laptop computers in 2014. Accommodate mobile prospects and applicants with On-Site’s mobile optimized online leasing tools.
Sharing quality content increases loyalty. More and more people are going mobile. Mobile devices and cellular data networks are going to keep getting faster to meet demand. Take advantage of the technology by posting high-resolution images and videos. Doing so can help generate a more active following and a higher ROI for your marketing efforts. By the way, On-Site can help. Our websites feature HD professionally hosted video tours.
Use the right tools and stay ahead of the competition. With the continuing construction projects, industry experts project that some of the largest metro areas will see big profits from rent growth. Seattle takes the cake, with many reporting it will see the biggest percent change in rentals as the city continues to grow. The San Francisco and San Jose Bay Area is on track to increase rent pricing by around 4.7% next year as the unemployment rate in the area dropped from 6.9% to 6.1%. Around the country, we’ll see an average 3% increase in rent pricing in 2014 as well (normally double the rate of inflation).
The bottom line is that the rental market is going to get very competitive in 2014. Stay ahead of the competition by putting tools in place that make it easy for renters to do business with you. On-Site’s full-featured leasing platform allows renters to shop for an apartment, apply, qualify and e-sign their lease in one continuous, online checkout process, optimized to run on the smart phones and tablets favored by millennial renters.
About On-Site.com | Founded in 1999 in Silicon Valley, On-Site set out to use the Internet to revolutionize the business of apartment management.
On-Site has grown to become the gold standard in the apartment business. We are self-funded and profitable, with growth fueled by award-winning marketing, leasing and mobile tools. We allow apartment operators to maximize occupancy, enhance quality control, maintain compliance and ensure consistent success at all levels of property operations.