With the constraints imposed on account of the Pandemic outbreak steadily decreasing, the demand for high-density dwellings seems to be a dominating demand in the market for the foreseeable future. While it will be a wise step for any construction company in Texas and everywhere else to set up multifamily structures, understanding the changes and aspects driving the market is paramount to a higher ROI yield and also to build more efficient homes. Here are the top 7 trends in multifamily construction in 2022.
Tech To Take The Wheel
Having made strong inroads in the real estate industry, technology is going to be a driving factor in multifamily construction. With increasing demands for tech-driven amenities, multifamily general contractors are bound to incorporate these technologies. According to Gables Residential President and CEO Sue Ansel, there have been increasing conversations concerning Airbnb, autonomous cars, disruptive technologies, the internet of things, and delivery drones.
Developers are prioritizing technology in multifamily spaces due to their high demand. This includes electric car charging stations, rideshare pick-ups and drop-offs, and the incorporation of disruptive technologies like wireless networks and whole site wifi systems into the building plans.
AI to Play an Integral Part
Integration of artificial intelligence and assisted machine learning for analytical purposes are already being used by commercial real estate companies. However, multifamily construction companies are at a place to implement artificial intelligence through building management, design, and even organization. The demand and need for smart homes are constantly increasing, with homes using ai based technology systems like voice technology, occupancy sensors, smart locks, etc. This tech allows an optimal sense of efficiency in building access, security, and even day-to-day life. Multifamily general contractors also use artificial intelligence as a marketing tool to attract better renters and more tech-savvy individuals.
Competition for Online Warehouse Space
The effects of Amazon and other online marketplaces have made their way into the real estate market as well. With more and more people taking to online shopping, there is an increased demand for warehouse spaces near populated areas. This makes things convenient for the everyday shopper but not for the everyday developer. Termed perfectly as the Amazon effect, multifamily contractors must be aware of it. Development costs in such areas might be prohibitive or incredibly lucrative depending on the condition of the market.
Sustainability and Climate Change
Modern-day contractors need to be aware of buzzwords like sustainability and climate change as it is making a huge impact on their business. As the world becomes more aware of climate change and the need to protect the environment becomes an obligation, millennials are opting to live in multi-family homes to cut down their carbon footprint.
Similarly, the concept of co-living is becoming a growing trend among millennials for both economic and environmental reasons. Architects and designers are building LEED-certified buildings, contractors are implementing sustainable practices and sourcing local products and homeowners are looking to amalgamate technology with multifamily living spaces to create affordable living areas in populated areas.
It would benefit multi-family home builders to stay on top of these buzzwords to be able to deliver to the demands of modern and environmentally conscious homeowners.
A Solution to the Housing Crisis
Affordable housing has become a thing of the past. Both boomers and millennials are looking to downsize to smaller living spaces that are more economical yet well connected.
This is an opportunity for multifamily developers in Houston and other places with soaring real estate prices to build economically viable and smaller living spaces. The entire point of building multifamily living spaces in populated areas is to reduce commute time and allow homeowners to live in well-connected urban neighborhoods. The fact that only millennials are choosing to live in multifamily homes is a myth. Anyone who is seeking a more urban and affordable living situation is downsizing to multifamily housing. Absorbing the population swell from large cities, suburbs and towns are also greatly benefiting from this.
Amenities Becoming the Primary Focus
More and more homeowners are preferring the modern amenities that multifamily living systems are offering. In fact the demand for modern amenities and technology has surpassed the demand for privacy that single-family homes offer.
These amenities include but are not limited to gyms, recreation centers, fiber internet, and even pet-focused amenities. Capitalizing on this can prove to be very beneficial for multifamily general contractors.
Risk Pertaining to Development
Multifamily general contractors need to be aware of the risks that are associated with multifamily projects. On account of trade tariffs, the severe lack of skilled workers, and supply chain disruptions, contractors are failing to deliver projects in time and to their full potential under budget.
There has been a dearth of labor ever since the financial crisis of 2008. The existing workforce lacks severely when it comes to competent skill and precision.
Choosing The Right Contractor
Having the efficiency and the appropriate workforce, Rise construction stands as the ideal multifamily contractor in Houston. Visit our website or get in touch with us to find out more about choosing the right contractors and figuring out all that you need to kick start your multifamily project.