‘Not Everyone Wants the American Dream’

James Curnin

The long-standing American Dream of owning a single-family home continues to fall out of favor as more and more Americans post-pandemic seek a lifestyle more easily facilitated by renting. Since 2010, the number of renters has increased twice as fast as the number of homeowners nationally, with much of this growth attributed to wealthy and high-earning households. Instead, this steadily increasing renter-by-choice demographic prioritizes working from home and moving around from place to place easily without financial ties, and according to Pew Research Center, they now represent a third of today’s renters. Since expectations have grown greater than standard floor plans and carbon copy rental buildings, multifamily developers need to be strategic in how they can appeal to these new renters’ walks of life. Developers should consider the following to capitalize their own bottom line.

Location Is Key

While many people are still actively seeking out downtown living for proximity to culture, entertainment and economic opportunity, multifamily developers should also broaden their scope to consider areas apart from the hyper-urban. While dense cities continue to retain their value due to the typically high barrier of entry, neighborhoods situated in that sweet spot between urban and suburban life can offer residents a chance to embrace a better work-life balance without the constant hustle and bustle that comes with a downtown setting. A more residential community, perhaps positioned on a waterfront or offering great views, with top-rated schools, walkability and safety will always maintain its value especially now that there is healthy appetite in the rental market for these neighborhoods. These attributes make for a highly profitable investment over time.

Accommodate Your Audience Appropriately

While renters have typically been thought of as new college graduates, young professionals, or those unable to afford homeownership, the demographic is rapidly changing. With remote work here to stay, people are highly interested in less traditional settings that allow them to work where they live, rather than live where they work. Millennials especially, alongside young families, DINKs, jetsetters, and boomers, have a greater appreciation for a lifestyle that can accommodate mobility and fresh starts without firm commitments, maintenance costs or compromising the level of luxury they are used to. Spaces should appeal to these renters with careful thought and alleviate all hassles associated with homeownership. Renters-by-choice are lured to professionally managed and institutionally owned rentals that will maintain the buildings and fix problems in a timely manner.

Create a Sense of Community

Renters-by-choice want to know their neighbors and feel a sense of belonging without foregoing privacy. Creating opportunities for connection like large, modern floor plans with dens and sprawling, café-like common areas are great examples. Going beyond indoor and outdoor coworking and living spaces to more niche inclusions, such as exclusive networking opportunities, private offices or children’s rooms and services, better caters to the highly personalized needs of this population. Renters-by-choice are also keen to forge new relationships, which places greater importance on staff and the service they provide. Bonds developed with neighbors, doormen and concierge often parlay into longer-term residents.

Premium Amenities and Services Are a Must

Especially now that proximity to employment or transit is not as valued as high-end amenities for many, developers should think creatively to offer a premium collection that cannot be as easily delivered via homeownership by keeping in mind the greater picture of their residents’ daily lives. Think bigger than a pool or in-building gym and, instead, offer a suite more reflective of an all-inclusive resort to better appeal to those renting by choice so that they feel as though they have everything at their fingertips, never have to leave, and don’t have to sacrifice their living space in order to pursue their hobbies. Pet-friendly facilities and parks, smart in-residence technology, green architecture, and thoughtful incorporation of areas for food delivery, given its surging popularity, are just a few examples of ways developers need to adapt practices to take advantage of what people are most partial to. Instill high-level service standards by equipping developments with staff who will get to know every resident individually and eventually anticipate their every need.  Quality service and amenities provide the feeling of home, separating this new breed of multifamily development from the pack.

Veer Away From Cramped and Cookie-Cutter Floor Plans

Multifamily developers can breathe life and excitement into rental properties by dispelling the long-held notion that rental buildings all feature the same outdated, run-of-the-mill design. Incorporate floor plans constructed with many different types of renters in mind and think big. Units that skew larger and start at 2,000 square feet inherently deliver a stronger feeling of home and offer renters needing a foothold in a city a place to put roots down while still providing flexibility.

James Curnin is CEO and founder of Clara Homes.