The multifamily housing industry is an industry where a building or several different buildings within a complex is made of units containing different families in separate groups. Examples of such structures include apartments, townhouses, and duplexes. These types of industry have been in place for so many years now all over the world, unlike previous decades. It has increasingly grown over the years with more multifamily units and more inhabitants. It mainly took a peak in the last decade. According to National Association of Home Builders, more than 350000 multifamily buildings were built in the year 2014. This is due to many factors including population increase and less land for more buildings. This is especially in cities and towns.
The real estate business has grown most in the multifamily housing sector. Apart from the increased population, other factors that have made this industry boom include, high pricing for buying houses and ease in renting the apartments. Also, employment opportunities have decreased, and the few jobs that are there could be paying wages that are not enough to sustain living in other types of houses. Renting a home over buying a house proved to be more comfortable for many individuals. Most people renting such dwellings are young people. This is because they still have less income and have no stable jobs and salaries.
Many investors have put money in this business to meet the increasing demand. For instance, one organization in Atlanta called Carroll Organization used over 500 million dollars in this industry. The money was used to buy several multifamily buildings. The investments have proved worth it over the years. Many business people prefer rental apartments to selling them. Rental apartments and multifamily buildings produce a lot of profit compared to selling the units. Among all the multifamily buildings, ninety percent are all rental. Also, these homeowners are raising the rents for this groups to get more profit. It has proved to be a fruitful business opportunity to many.
The increasing demand and less space for a building have made investors want to build more high buildings. Buildings as tall as skyscrapers are built. Tall houses have made the architecture difficult, and the buildings have become dangerous. As a result, new height limits have been put especially in residential homes.
The following trends need watching in the multifamily housing business.
1. Urban Lifestyle
Many people are seeking to have a feeling of the urban lifestyle or live in the urban areas. It has made many people rent apartments and units buildings that are near or in urban centers. These structures help many people to access the town areas quickly. Urban lifestyle is preferred because of ease of access to a lot of things.
2. Luxury that is Affordable
Due to the increase in demand and competition, the developers of these multifamily houses have to build attractive dwellings. Attractive in the sense of useful features and other amenities. The features attract the tenants. The facilities include pools. The developers also have to be creative so as not to incur losses. Some opt to build smaller units to increase their numbers and thus fewer materials for building and more rent due to more homes.
3. Increase in Amenities
The Amenities include access to free Wi-Fi, childcare services, gyms and laundry services. The amenities should be those that the tenants will most likely use and are not just there for show.
4. Tenant Control of Technology
Tenants are allowed to control their technology. This control is because, with the increasing growth of technology each passing day, the building owners may not be able to handle the pressure. The tenants could have different preferences and as such, giving them control will be a less tedious option.
5. Letting Tenants Sign a Green Lease
A lease is an agreement signed by both tenant and landlord for the conservation of energy for better utilization of the energy resources.