INTrend Multifamily Edition 2023 - Builders Design

INTrend is Responsible, Sustainable, and NOW Digital!

Introducing the first all-digital release of INTrend. Like others in the homebuilding industry, we are striving to be current, environmentally responsible and nimble to how we deliver information for our customers at large. Enjoy reading, browsing, and saving this information packed resource!

Cover: The Sterling by The Beach Company

Rendering provided by fOCUS 360 through our Boundless partnership

IN INFORM INFLUENCE INSPIRE INDULGE INNOVATE

TREND

WELCOME to the 3rd Edition of INTrend!

Joe Duffus

This starts with an innate sense of customer service that every team member embodies and offers to our process and customer experience. We know that our company does not exist without you, and we also know that relationships are more important than ever in an everchanging world and fast paced industry. We want you to count on us, to expect the unexpected, and to see us go the extra mile from everything including uniquely curated design, to offering above and beyond effort to bring your communities to life on time and on budget.

The days of “five star service” have faded across many industries but at Builders Design, delighting our clients is what sets us apart. From our enduring need to stay on top of trends by providing top-notch research, through our yearly publication of this book, to staffing our regions with top talent, we strive to break through each year with fresh approaches to design that excite and offer you new ways to be inspired, educated and primed to impact your very own customer base.

The last year offers us perspective and reflection. Not only are we coming out of a very prosperous two years of homebuilding momentum and growth, but we faced new c hallenges with supplies, delays, rising interest rates and changes in demand. At Builders Design our team appreciates the road of growth, prosperity and reflection, but also the opportunity to support your company through changing times and offering a secure partnership that stands strong regardless of changing circumstances. We look forward to being a light of consistency, strategy and partnership.

WE STRIVE FOR YOU TO ALWAYS TO WORK WITH US!

At Builders Design, we strive for our partners and prospects to elighted every day.

“To improve is to change; to be perfect is to change often.”

WINSTON CHURCHILL

BUILDERS DESIGN

THE CHANGING MARKET future think

NEW REALITIES 2023/2024

Societal Influences

ECONOMIC: The high cost of housing is prohibiting younger generations from entering the housing market. Since Millennials are marrying later and waiting longer to form families, they don’t have the dual-income power of older generations. These two variables – cost and a new lifestage called “Youthhood II”- is leading to a larger renter population as well as a trend to rent longer.

DEMOGRAPHIC: With nearly 67 million people aged 20–34 in the United States, the pool of prime renter age individuals is larger than ever. Additionally, roughly 4.3 million people will turn 18 each year from 2022 through 2030. And the rising senior market: households headed by people aged 65 and older are expected to grow from 34 million to 48 million in the next two decades.

COMPETITIVE: New players continue to enter the marketplace beyond the investors in the BTR sector. Marriott has announced it is expanding its Bonvoy brand with a new franchise of serviced apartments in the U.S. and Canada — a long-term accommodation that offers furnished apartment-like rooms with hotel amenities, including housekeeping and concierge services. The company will introduce the apartments at the luxury market level with designs that reflect the local area.

Delayed Adulthood / Rent Expense

Two decades ago, less than 12% of young adults ages 25 to 34, or 4.6 million, lived with parents. The current share of 20.2% translates into 8.9 million of young adults living in homes of their parents or parents-in-law. EYE ON HOUSING

Marriott International introduces apartments by Marriott Bonvoy, responding to growing consumer demands as travelers increasingly blend work and leisure.

MARRIOTT THAILAND

MARRIOTT INDONISIA

NEW REALITIES 2023/2024 Demographic Turning Points

The year 2030 marks a demographic turning point for the United States:

• Beginning that year, all baby boomers will be older than 65 years of age. This will expand the size of the older population so that one in every five Americans is projected to be of retirement age.

• Later that decade, by 2034, it is projected that older adults will outnumber children for the first time in U.S. history.

• The year 2030 marks another demographic first for the United States. That year, because of population aging, immigration is projected to overtake natural increase (the excess of births over deaths) as the primary driver of population growth for the country.

CENSUS.GOV

SVEN MIEKE - UNSPLASH

JOEL MUNIZ- UNSPLASH

JONATHAN BORBA - UNSPLASH

HIGH END RENTER HOUSEHOLDS COURTESY OF THE JOINT CENTER FOR HOUSING STUDIES AT HARVARD UNIVERSITY.

The lux multifamily segment is well-served and new lux unit construction is anticipated to remain strong due to higher income tenants.

NEW REALITIES 2023/2024

More Families Renting

Design firm Danielian Bureau has completed an apartment interior that includes a modern kid’s bedroom.

DANIELIAN BUREAU

NEW REALITIES 2023/2024

Active Senior Living Reinvents

The first Kindred Uncommon community will open in Austin, Texas in 2023. The idea behind Kindred Uncommon is to create enclaves for “forwardthinking” older adults (and some young people) near small cities with “local yoga studios and coffee shops” — a sort of Florida retirement community for those who aren’t keen on living in a Florida retirement community. At the first location, residents will move into glass-and-wood apartments with wide porches so “you can sit and talk to your neighbors and use shared calendars to plan communal dinners and concerts”.

UNCOMMON LIVING FOR UNCOMMON PEOPLE. An uncommon take on community living designed for people who what to live well and write their own chapters, together.

KINDRED UNCOMMON

KINDRED UNCOMMON

We are entering a new era where senior living might span 30+ years due to longevity.

NEW CHALLENGES 2023/2024 Affordability Migration

A growing share of voters in both red and blue states supported ballot measures in the 2022 midterm elections to address housing insecurity, with many proposals approved with nearly 70% of the vote, according to an analysis from Moody’s Analytics. For the foreseeable future, housing supply and insecurity will likely remain salient in the national discourse. GLOBEST

The shares of buyers who purchased homes in small towns (29%) and rural areas (19%) were the highest ever recorded, while the shares of homes purchased in suburban (39%), and urban (10%) locations declined from one year ago. NAR 2022 BUYER & SELLER REPORT

We will see continued migration from expensive urban and surburban areas to rural counties due to affordability. The migration from large urban counties continued in 2021. In total, the core counties of large metro areas lost 1.2 million people to domestic migration last year. In contrast, suburban counties of these large metros gained 428,000 people on net from domestic moves, while counties in small- and medium-sized metros added a net total of 539,000 migrants.

Reversing the long-term trend away from rural areas, non-metropolitan counties gained 235,000 people from net domestic migration last year. Given the small populations of these areas, this represents a substantial increase. JSHS

NEW CHALLENGES 2023/2024

Affordability Innovation

The rising new in multifamily is the addition of rental amenities; household items available for rent, even items like vacuum cleaners or drills that tenants may only need temporarily.

Dignified design for lower-income housing

Brooks + Scarpa designed the Magnolia apartments in Los Angeles for more compact, responsible urban living. It is a new model of mixed-use which includes both workforce and market-rate housing.

BROOKS + SCARPA

BROOKS + SCARPA

BROOKS + SCARPA

NEW OPPORTUNITIES 2023/2024

Construction Innovation

Cloud Apartments has unveiled the ‘Cloud S’ prototype, the first of its kind modular apartment that represents the reduction of up to 50% of time spent on construction and 30% in cost savings.

The ‘Cloud S’ is slated to be manufactured by factories across the country in the same fashion that luxury brands manufacture vehicles. After the manufacturing phase, each ‘Cloud S’ will be transported to construction sites and stacked with a crane up to 7-stories high. This results in apartment buildings of 100 to 300 units, with each rental unit at a level of quality typically only found in high-end condominiums.

The Cloud S apartments come included with the company’s embedded smart experience to automate the home.

An increasing number of multifamily projects are incorporating offsite construction, as more developers take advantage of its quicker timelines, according to a 2022 Modular Building Institute report.

CLOUD S APARTMENTS

CLOUD S APARTMENTS

CLOUD S APARTMENTS

NEW OPPORTUNITIES 2023/2024

Construction Innovation

Canadian property technology experts at Audette have built an artificial intelligence (AI) platform that does in a few hours what it would ordinarily take humans years to do – analyze a full portfolio of commercial real estate for decarbonization opportunities and build a plan to retrofit every building in the most cost-efficient manner. From renewable energy opportunities to carbon-negative materials and low-carbon technologies, Audette can build a carbon-transition plan for any building, layering operational data with capital planning and a breakdown of costs and energy usage of each piece of equipment and location, as well as forecasts of emissions.

”We envision a future where, despite all the challenges the world is facing, real estate owners across the planet have taken up the call to retrofit their properties with low-carbon technologies, carbon-negative materials and onsite renewables. Those that participate in this massive market transformation will emerge as leaders in this new no-carbon economy.” AUDETTE.

In 2022, Cassette introduced a beautifully designed one-bedroom apartment pod that can stack up to six stories high into a multifamily development.

CASSETTE SYSTEMS

CASSETTE SYSTEMS

NEW OPPORTUNITIES 2023/2024 Sustainable Building

The typical way of addressing carbon emissions is through cutting energy use—getting more efficient physical systems, creating greater efficiency in heating and cooling buildings by monitoring where people are, and so on. CarbonQuest has a different approach for buildings that use natural gas for heating or hot water. The company has equipment that takes CO2 arising from burning the gas and compresses and cools it to form a liquid. The liquid is then shipped to some other company that can permanently sequester it.

According to the company, it’s already in use at the Grand Tier, a 375,000 square foot multifamily building at 1930 Broadway in New York City. The system is in the building’s basement. After being liquified, the CO2 is transported to Glenwood Mason Supply, which makes concrete blocks. Glenwood injects the liquid into concrete blocks that are used in new building construction. The goal for the building is to cut overall emissions by 25%. The company claims that its system can capture all of a building’s emissions from natural gas, depending on the structure’s size and design.

With an obvious need to address climate change, and the practical interest of many investors and regulators in ESG, reducing carbon footprints of buildings has gained new importance.

The concept could become important not only as one way of addressing climate change, but in making multifamily properties and portfolios more appealing to investors.

GRAND TIER IN NYC

NEW OPPORTUNITIES 2023/2024

Sustainable Strategies

Bosco Verticale in Italy, designed by Boeri Studio, has kick-started a new kind of eco-construction revolution, which goes far beyond green roofs. The residential towers designed by Boeri Studio has 27 stories with balconies that contain 900 trees, 5,000 shrubs and 11,000 perennials.

ARCHITECT AT WORK

What if every surface invisibly generated renewable energy?

Andersen Corporation and Ubiquitous Energy, the world leader in transparent solar technology, have entered into an agreement to jointly develop first-of-its-kind energy generating window and door products. The products will leverage Ubiquitous Energy’s UE Power™ technology, the only patented and visibly transparent photovoltaic glass coating that harnesses solar power to generate electricity, while remaining almost indistinguishable from traditional windows.

CHRIS GALLAGHER - UNSPLASH

When architecture becomes landscape

BOSCO VERTICALE BY BOERI STUDIO

NEW EXPECTATIONS 2023/2024

Climate Concerns

The Circular Facade Company has a 100% circular facade product called Ciskin. The firm focuses on developing circular facade concepts with an optimal (technical and aesthetic) lifespan that can be flexibly adjusted and dismantled at the end of the useful life for remanufacturing and reuse. NETHERLANDS

AMLI RESIDENTIAL SUSTAINABLE LIVING INDEX 2022

The company has done this study every year since 2017 and in recent years, the research shows a dramatic increase in residents requesting electric vehicle (EV) charging stations.

THE CIRCULAR FAÇADE COMPANY

NEW EXPECTATIONS 2023/2024

Climate Change

For younger generations, an area’s climate issues & politics affect where they want to live.

While the places most endangered by natural disasters are still popular with many homebuyers, that could shift as young people who grew up learning about climate change become a larger force in the housing market.

TOBIAS RODEMACHER- UNSPLASH

CHRIS GALLAGHER - UNSPLASH

NEW NECESSITIES 2023/2024

Reducing Costs

“We must find a better balance between investing in the unit and building amenity areas, which have long dominated development and design conversations. Our research reveals that focusing on design solutions for poor layouts, inadequate storage, and noise issues would build a solid foundation for improving the overall unit experience and better supporting the diverse activities that occur in today’s homes, from working and exercising to cooking and relaxing.” GENSLER 2022

GENSLER RESEARCH INSTITUTE ©2022

Residents place a higher value on unit features and personal space than on shared or common amenity areas

The Gensler survey captured the experiences of over 13,000 residents in nine diverse markets.

Rents are out of control & developers need to cut expenses -target the least valued amenities.

Residents most prioritize living in walkable proximity to grocery, dining & green spaces

NEW NECESSITIES 2023/2024

Micro-Unit Apartments

High development costs, limited land availability, and increasing demand for multifamily units have led to increased rents and altered renter preferences. As consumers searching for more accessible housing in major metros and cities, developers look to address the affordable housing crisis. A new trend has emerged —micro-unit apartments.

These tiny living quarters are getting the attention of the country’s top investors and developers as residents jump at the chance to live a minimalistic lifestyle in a purpose-built home. As more metros face land scarcity and lack of housing, micro-units may be the solution for over-built markets. MATTHEWS REAL ESTATE INVESTMENT SERVICES

Mostly found in densely populated metros, a micro-unit apartment is typically less than 400 square feet with a full-functioning bathroom and kitchen. These types of apartments are made to be efficient, not wasting one inch of space. Oftentimes, the units will have hideaway storage, modular furniture, and a murphy bed that goes into the wall when not being used. The majority of new tiny units are eco-friendly and in a complex with several amenities, similar to a high-end apartment building. MATTHEWS REAL ESTATE INVESTMENT SERVICES

Micro-units are one of the best examples of a win-win in residential real estate, to date. Renters get exactly what they want, the best location, privacy, and their own unit, while operators get exactly what they want – the highest rent per square foot. CROWDSTREET

ONE SANTA FE MICRO UNIT – DENVER (OPENS IN 2024)

NEW NECESSITIES 2023/2024

Short Term Rentals

Landing uses data on pricing and demand around the country to zero in on multifamily buildings around the U.S. Through performance marketing and referrals, it then finds tenants for these apartments, itself signing one-year leases, then quickly moving in everything from furniture to utensils for the tenant. Landing has the furnishings made overseas and shipped to warehouses in Austin, Phoenix and Alabama, where it is based.

Tenants, who sign on as Landing “members” for a $199 yearly fee, commit to renting from Landing for a minimum of six months, though they’re allowed to move freely to other Landing-operated apartments during that period, provided they give the company two weeks’ notice. Currently, on average, they stay in one spot six months. TECH CRUNCH

Think business travel where you need a short-term stay–on-trend with a growing freelance workforce.

Startups looking to make it easier for people to rent apartments on a flexible, shorter-term basis are gaining momentum thanks in part to the rise of remote work. The flexible living startup, Flow, founded by WeWork co-founder Adam Neumann, has locked down $350 million in funding. Online rental marketplace Zumper has raised $30 million in funding to help it better serve people looking for short-term rental options.

Landing is a startup that is making it possible for its customers to rent a fully furnished apartment on its platform for as short a period as one month. It has also secured fresh funding. TECH CRUNCH

NEW NECESSITIES 2023/2024 The Live/Work Paradigm

Home offices, meeting rooms, zoom rooms, high speed internet access, and co-working spaces are expected in new buildings.

Due to increased time spent in the home, residents want bigger spaces; with full-size in-unit washer/dryers as opposed to small stackable units in a closet, upscaled bathrooms, and kitchens that include amenities typically found in high-end single-family homes. PROGRESSIVE AE

Downtown Kansas City’s Two Light luxury high-rise includes Spark Coworking on its first floor. The facility consists of 15,000 square feet of mixed-use workspace, including open tables, private desks, meeting rooms, and lounge areas. Two Light residents will be eligible for work/live leasing packages, but non-residents can also join Spark, creating a vibrant collaborative space.

MCKINSEY

McKinsey data shows that 58% of employed Americans, equivalent to 92 million people, have the option of working from home at least one day a week.

THE APEX AT CITYPLACE - KANSAS

SPARKS COWORKING AT TWO LIGHT – KANSAS CITY

NEW DESIRES 2023/2024

Wellness Spaces

In addition to standard courtyards, some multifamily properties are getting more creative with outdoor offerings, including CrossFit exercise yards and meditation gardens. Post-pandemic, residents specifically value being able to enjoy outdoor spaces that are close to home.

WHAT DO YOU REGULARLY DO TO MAINTAIN YOUR GENERAL WELLBEING?

Watch favorite TV

Get enough sleep

‘Positive Indulgence’ is all about how consumers view treating themselves as a fundamental part of wellbeing. THE FORESIGHT FACTORY

MADISON LAVERN - UNSPLASH

NEW DESIRES 2023/2024 Wellness Spaces

The spend on wellness products and services is expected to be more than $450 billion in the United States and growing at more than 5 percent annually. Consumers increasingly value and seek out products and services that can address needs across several wellness dimensions (such as mindfulness and fitness or nutrition and appearance). These wellness dimensions capture a range of product and service categories, including the following:

• Health: over-the-counter medicine, vitamins, and personal hygiene.

• Fitness: fitness clubs, studios, at-home fitness equipment, and fitness wearables.

• Nutrition: diet programs, subscription food services, nutrition apps, and juice cleanses.

• Appearance: skin care, dermo-cosmetics, hair care, and salon services.

• Mindfulness: counseling or therapy, meditation studios, and mindfulness apps.

• Sleep: sleep supplements, app-enabled sleep trackers, and other sleep-enhancing products.

LIFE EDITED APARTMENT BY ADRIAN LANCU - TRENDIR

MCKINSEY

Dedicated meditation rooms, recharge spaces or even relaxation suites are on the rise.

MEDITATION ROOM AT THE ROALD DAHL OFFICES IN LONDON

ST. MARKS PLACE – NEW YORK CITY

NEW INFLUENCES 2023/2024

Multifamily Takes Cues From Hospitality

Startups and scaleups are developing solutions to bring digitalization and automation to the hospitality industry. Therefore, artificial intelligence and in-room technologies such as keyless doors, online ordering, and integrated guest applications are the top trends in the industry.

TOP 10 MATERIALS INDUSTRY TRENDS & INNOVATIONS IN 2022

Sustainability

Nanotechnology

Responsive (Smart) Materials

Additive Manufacturing

Lightweighting

Advanced Composites

Material Informatics

Graphene & 2D Materials

Surface Engineering

Materials Management 4.0

COPYRIGHT © 2022 STARTUS INSIGHTS. ALL RIGHTS RESERVED JANUARY 2022

Adopting sustainable practices to reduce building carbon emissions is also key on the horizon.

Based on success in the hospitality industry, some developers have taken advantage of a growing trend by providing a small convenience market somewhere on their property, where residents can grab items and charge them to their units, according to Kimura. This provides an additional service for renters and an additional revenue stream for the property. MULTIFAMILY DIVE

Community grocery stores are ideally designed directly in residents’ apartment buildings. This growing trend, which developers see as the natural next step of the “corner store,” opens doors for communities that are focused on having everything you need in one building.

URBAN VALUE STORE

NEW INFLUENCES 2023/2024

Multifamily Takes Cues From Hospitality

With advances in AI, the devices are rapidly evolving in terms of features and functionality. Chatbots, for example, are becoming increasingly adept at recognizing not only speech but also intonation and context. Some systems have begun to incorporate such futuristic capabilities as “computer vision” to visually identify objects and people. The fact that these technologies are getting progressively smarter — literally, by the minute — is a hallmark of the so-called Fourth Industrial Revolution. The era is marked by breakthrough technology innovation in such fields as artificial intelligence, robotics and the Internet of Things (IoT) — that is, the wireless linking of everyday objects. These technology innovations are fast becoming a mainstay of hotels and resorts across multiple sizes and categories, with new developments raising the bar on functionality. STARFLEET RESEARCH

Multifamily is looking to how the hospitality industry is reinventing the tenant experience using technology.

SMART HEALTH MONITORING:

In-unit devices that can track changes in your health and let you know about them. Technology allows you to measure, monitor and track your body changes and make recommendations for better health.

Next gen multifamily experiences will include IoT connectivity, immersive technologies, robotics, personalization, and internet marketing to achieve maximum satisfaction.

Global From Birth (ages 0-14)

The First “Screenager” Cohort

Educate Longer; Earning Later

Living At Home Into Their Late 20’s

Creative And Resilient

Value Family, Diversity & Community

Will Have A Longer Life Span

GENERATIONS the younger

The younger age groups have faced recessions, a pandemic, high inflation and global unrest. Yet they remain our most creative and resilient generations.

The age at which we are exposed to a new technology or transformative event determines how embedded it will be in our psyche and lifestyle. As the first generations to be born into a world of new technologies, the influences that shape them are different to previous generations. MCCRINDLE

Gen Z (ages 15-26)

First Social Media Generation

Elongated Single Lifestage

Embrace Practical Uniqueness

Connected; Smart Home Desire

Living Sustainable Lifestyles

Reimaging Work & Community

Millennials (ages 27-47)

Only 53% So Far Are Homeowners

Leading Society Into A Hybrid Future

Fueling The Experience Economy

Finding Design Inspiration Everywhere

Facing Second Recession As Adults

Climate Concerns = The Resilient Home

VIVEK KUMAR - UNSPLASH

NEED COMMUNITY younger generations

Tap into the “moments economy”. Help tenants experience regular and spontaneous moments of escapism and celebration inside everyday routines. At a time when 43% globally say they love any excuse to have a celebration, there’s a strong desire to make the most of every moment, no matter how ordinary. That could mean FORESIGHT FACTORY 2023 TRENDS

BUILDERS DESIGN

The Apex At CityPlace has a whole range of unique amenity spaces, including indoor and outdoor gaming areas.

GENERATIONS the older

The CDC describes “aging in place as “the ability to live in one’s own home and community safely, independently, and comfortably, regardless of age, income, or ability level.” Gensler’s Multifamily Study results suggest that many homes fall short of this standard, particularly for residents in multifamily housing. Nearly 30% of older adults surveyed fear that they will not be able to stay in their current home as they continue to age.

Gen X (ages 48-57)

Entering Leadership Roles

Multigenerational Living

Self-Reliant; Active DIYers

Strong Work/Life Balance

Tech Savvy But Can Unplug

Practical, Critical Thinkers

Baby Boomers (ages 58-78)

Reentering the Workforce

Helping Children Financially

Embracing New Lifestyles

Tech & Design Followers

New Lifestage: Youthful Aging

Community Connectivity

Seniors (ages 79+)

Eighty Is The New 60

Living Longer, Aging Better

Driving The Wellness Market

Home Shifts for Active Lifestyles

Tech Solutions For Aging-In-Place

Strong Intergenerational Connections

RICHARD SAGREDO - UNSPLASH

The country’s wealth and equity lies with the older generations, particularly since they are the largest homeowner generations. When choosing a multifamily residence for their next life stage, the key factors include a desire for no maintenance, lux living space, wide variety of amenities and community-oriented activities.

DRIVE AMENITIES older generations

Rising lux amenities include gourmet kitchens, deep soaking tubs, covered balconies and patios for the unit. In the common areas, trending up are massage salons, movie theaters, dog spas, Zen gardens and more.

BUILDERS DESIGN

BUILDERS DESIGN

GLOBAL ages 0–14

from birth

“New generation of older moms – over the past three decades, birthrates have declined for women in their 20s and jumped for women in their late 30s and early 40s. The median age of U.S. women giving birth is now 30, the highest on record.”

U.S. CENSUS BUREAU

BUILDERS DESIGN

There are more family choices within the multifamily segment with townhomes, condominiums, apartments, bungalow courts, and duplexes, triplexes and quadplexes.

GEN Z ages 15–26

We will see renter housing for young adults get more innovative in how ‘small units can live large’ for affordability; all while balancing openness and privacy.

The high cost of renting: for those Gen Z who have made it out of their childhood bedroom, 32 percent are spending roughly half of their monthly income on rent or mortgage.

CREDIT KARMA STUDY

For 2023, higher interest rates and mortgage rates, and higher unemployment are expected, thus reducing the wealth of funds renters have to spend on rent.

MANAGE CASA

A home that feels welcoming and open, despite its relatively tiny 367-square-foot footprint.

PARKER GIBBONS- UNSPLASH

Millennial Homeownership Trails Previuos Generations

MILLENNIALS ages 27–47

The cost of housing aside, many millennials tend to support the renter-by-choice phenomenon. This group is generally attracted to the flexibility, access to amenities, community feel, and lack of maintenance costs that comes with renting an apartment GLOBEST

Down payment savings rates remain shockingly low for Millennials who want to buy homes. In 2021, nearly two-thirds say they have no savings whatsoever, and only 16 percent have saved more than $10,000. The average savings of slightly over $12,000 represents just a 4 percent down payment on a median-priced condo today. APARTMENT LIST 2022 MILLENNIAL HOMEOWNERSHIP REPORT

Increasingly, Millennial Renters Are Giving Up On Homeownership

The annual share who plan to “always rent” instead of buy

JONATHAN BORBA - UNSPLASH

GEN X ages 48–57

Many Gen Xers work from home, so they value amenities that make both home-life and work-life easier. Wi-Fi is a priority for them, which means smart tech must evolve beyond its role as a conduit to toggle devices on and off.

The next evolution of smart tech will leverage machine learning to create a “sentient home,” where smart tech will make real-time adjustments based on a renter’s behavior patterns. This level of intelligent automation will benefit both renters and owners/ operators in the multifamily space.

There’ is a huge demand for private outdoor space. Even in markets where it snows, people want to be able to get outside.

BUILDERS DESIGN

ZILLOW

BABY BOOMERS ages 58–78

With retirements looming, longevity increasing, record generational wealth and housing prices right for equity liquidation, Baby Boomers are the here and now of the next decade of multifamily demand; a key factor in the rise of the average renter age.

MULTIFAMILY EXECUTIVE

What makes the Modern unique is “The Conservatory” – an amenity space on the top two floors with a bar, lounge space, club room, private dining and executive board rooms. The building also has a “Director of Lifestyle” who leads a team of lifestyle professionals, curators and local Seattle tastemakers bringing the best to the building. The lifestyle director at The Modern manages and organizes programming for the residents’ in-house private members club.

The 55+ households will increase from 30 million currently to 50 million in 2035. That means that one in three households will be headed by a Boomer, a 67% increase and almost twice the size of the Prime-Time cohort that preceded them. They will dramatically increase housing demand. JSHS

TODAY’S BABY BOOMERS

• Active agers – still working, involved grandparents, looking for communities with outdoor and recreational facilities,

• Next home is bought with beautiful aging-in-place amenities built-in (wider doorways and halls, walk-in shower).

• Looking for spaces for hobbies, exercise, entertainment and outdoor living.

• Low-maintenance home preferred.

Rent rates at active adult properties typically are 10% to 30% higher than comparable multifamily.

THE MODERN IN SEATTLE - - LUX MULTIFAMILY

SENIORS ages 79+

The average tenure at non-active senior living facilities ranges from 2.9 years in memory care, 4.3 years at independent living communities and 9.2 years at entrance fee continuing care retirement communities. GLOBEST

TECHNOLOGY FOR INDEPENDENT LIVING

The Cuyahoga County Board of Developmental Disabilities (Cuyahoga DD) and North Coast Community Homes have teamed up, using TryTech smart apartments to provide assistive technology in four short-term rentals at Lakewood’s Cranford Apartments.

Each unit has a Ring doorbell, so people can see who is at their door for safety without answering it. There’s what is called a bed shaker and a fire alarm alert. There are devices on the stove that help with cooking, as well as a traditional microwave. There’s a lift system for people who have mobility issues and can’t get in and out of bed on their own. For $50 dollars per week, tenants can try out the tech to get them comfortable to use for Independent Living.

STAFFING SHORTAGES AFFECTING SENIOR LIVING

Assisted living and memory care providers are outperforming independent living operators in resident satisfaction, according to the J.D. Power 2022 U.S. Senior Living Satisfaction Study released. For independent living, score declines were greatest in satisfaction with community staff (-12 points) and satisfaction with community buildings and grounds (-10). This is mostly due to staffing shortages still affecting this segment.

CHRISTIAN BOWEN - UNSPLASH

MULTIGENERATIONAL LIVING future trend

In 1980, 38% of the U.S. workforce could look forward to a pension; in 2020, that figure had dropped to 15%, according to the BLS. At the same time, retirement savings such as 401(k) plans have not prepared boomers to stop working; median savings are only $202,000, according to data released in April 2022 from the Transamerica Center for Retirement Studies. Multigenerational housing, already on the upswing, was accelerated by pandemic conditions and is expected to remain a growth area within the housing market., causing some drop in senior housing.

Reasons for muligenerational living

Grandfamilies in Kansas City, Missouri, is designed specifically for grandparents raising their grandchildren. Apartments have multiple bedrooms. Programming ranges from after school and free time activities for youth, to continuing education courses for seniors.

Multifamily units that include multigenerational features such as extra bedrooms and bathrooms, in-law suites, and safety features are sure bets. While re-permitting and rezoning will present hurdles for developers, the demand for multifamily housing is simply too great to ignore.

RSM

INTERGENERATIONAL COMMUNITIES future trend

The intergenerational residence is a new idea based on an old model. It is about people of different ages who live together and share their dynamics as well as their time.

Intergenerational housing, in which the elderly can live independently while being part of a united group, could be one of the building blocks of a better future.

Zwei+plus is an innovative new concept for Intergenerational Living in Australia. It is subsidized social housing whose units are let in pairs to two cooperating, intergenerational households. These tandem households can be family or just plain friends, but they must move in concurrently and commit themselves to cooperation and support.

ZWEI+PLUS - AUSTRALIA

“We innovate by starting with the customer and working backwards. That becomes the touchstone for how we invent.”

JEFF BEZOS

BUILDERS DESIGN

NEW PERSPECTIVES shifts that matter

• Today’s 20- and 30-somethings are far more likely to rent than the generations before them — due to a mix of economic and societal factors, including housing unaffordability, mounting student loan debt and a desire for more flexible living arrangements.

• By some counts, the U.S. economy is short as many as five million single-family homes. The BTR sector is filling a need between owning a home and being in a multifamily dwelling – a solution that addresses the current housing shortage, particularly for affordable starter homes.

• Single-family rentals (SFRs) make up about 39% of the overall US rental housing inventory, with multifamily apartments composing 58% and manufactured housing accounting for 3% . The majority of SFR stock is more than 40 years old, with relatively little constructed over the past ten years. RCLCO

• Conversion versus new construction will continue to accelerate. Apartment conversions have risen 25% in the two years since the start of the COVID-19 pandemic, with 28,000 new units on the market converted from other property types. Of that number, 11,090 new units are the product of office-to-apartment conversions, up 40% between 2020 and 2021. RENTCAFE.

• Rise of smart home technologies — The multifamily smart home market is attracting many smart home providers and is increasingly competitive. By the end of 2022, the U.S. will have 41.3 million existing smart homes, with 77.1 million projected by the end of 2025.

Food for thought – there is the same amount of time between 1970 and 2022 as there was between 1918 and 1970. What will the world be like in 2074?

STEVEN RAMON - UNSPLASH

• The pandemic led to a record number of pet adoptions, and desired pet amenities will continue to be important in this segment; particularly pet washing stations and dedicated outdoor play spaces/dog parks.

• Moving from the “15-minute city” to the “5-minute apartment” as common areas expand in functionality. New York-based architecture and interior design studio Input Creative Studio designed a 215-unit mixed-use residential building in the Bronx. Recently completed, the living space transcends its function as a regular apartment building and is instead something of a vertical neighborhood. Residents are connected with shared spaces like a fully equipped café, library, lounge and co-working area as well as social and leisure areas like a children’s playroom, fitness room, theatre, yoga and meditation room, and game room. FRAMEWEB

• Most renters (58%) live in an apartment building. The typical rental home has 2 bedrooms and 1.5 bathrooms and is 1000 – 1999 square feet (500999 for recent renters). About two-thirds of recent renters (68%) moved from a previous rental.

ZILLOW 2022 DATA

Food for thought – the badge of honor in the past was “I am prosperous”, the badge of honor in the present is “I am digitally acute” and the badge of honor in the future is “I am carbon neutral”.

276 GRAND CONCOURSE - NYC

276 GRAND CONCOURSE - NYC

276 GRAND CONCOURSE - NYC

DRMAKETE LAB - UNSPLASH

BUILD-TO-RENT shifts that matter

LANGUAGE DOES MATTER

A group of professionals worked with the New Home Trends Institute to identify the language that most resonates with potential clients in the Build-To-Rent Industry. Takeaways include:

• The term BTR is the best choice in trying to reach the broadest audience. It lands more Google traffic since people typically search for “home for rent.” The term also has more hashtag followers and press mentions.

• The word “Home” is better than multifamily, product type or apartment.

• Developers should accentuate amenities like private yards, pet-friendly and security. Low maintenance and the fact that no one will be living above or below them were also on the list of things to emphasize.

• Make sure to point out that what you are building is a “professionally managed rental home community” to distinguish your property from one in which individual homes will be managed by individual landlords.

• Developers should speak about their projects in terms of style as opposed to density. For example, use the term “cottage style” if the property is going to be different from the typical single-family house.

• The council also stressed using the term “newly built” to separate from the “preconceived (and) unfavorable” notion often associated with renters. And it suggested emphasizing onsite management to build confidence among local officials that your project will be operated in a professional manner.

• Have the BTR industry follow the example of apartment builders who rate their properties as class A, B and C. But instead of using letters, it was suggested to use numbers: 5-star, 4-star and 3-star experiences. NEW HOME TRENDS INSTITUTE

Thousands of “build-to-rent” developments are springing up around the country, billed as an attainable route to single-family homes and front yards at a time when homeownership is increasingly out of reach.

Developers are expected to add 105,000 homes in such communities this year, and 50 percent more by 2025, according to real estate consulting firm Hunter Housing Economics.

J.P. Morgan Global Alternatives and build-to-rent firm Haven Realty Capital

are injecting funds into a joint venture to either acquire or develop more than $1 billion in new build-to-rent housing, as rising interest rates and inflation have deflated mortgage opportunities.

COMMERCIAL OBSERVOR NOV. 2022

KEY DRIVER

Younger generations are waiting longer to settle down, marry and form families. They are getting dogs, working from home and ready to be in a single-family home for privacy and their next life stage. In addition, they have been priced out of the housing market with high costs - first-time home buyers in 2022 accounted for the smallest share of the market in 41 years.

POSITIVE SECTOR MOMENTUM

Hunter Housing Economics estimates that build-to-rent developments currently make up about 10 percent of the country’s new homes.

NEGATIVE ASPECT FOR OWNERSHIP

“Rental payments don’t go into building equity, which is a significant portion of most Americans’ household wealth,” said Daniel Pang, a research assistant at the Urban Institute’s Housing Finance Policy Center. “Homeownership is a vehicle, a pathway, through which a bunch of privileges can be delivered. … it always has been.”

BTR communities generally provide more amenities than scattered-site SFRs do, and more space and privacy than traditional apartments offer.

MARLIESE STREEFLAND - UNSPLASH

Which amenities are the most in-demand in build-to-rent communities of single-family homes?

The build-to-rent sector is growing at a rapid pace with no signs of slowing down in 2022 or the near future.

Is it sustainable for the long-term? Right now, the market is skewed by players eager for a quick return on investment enabled by high-volume production and demand from an increasing number of consumers who can’t afford homes or who choose to rent. Several developers and builders see SFB2R as a complementary piece of a larger strategy of a customer’s housing journey. This includes developing master plans that incorporate single-family rentals among for-sale homes, perhaps even side by side. One model for this strategy is Tricon Residential communities that include SFR, multifamily apartments, and entry-level and move-up for-sale houses. PROBUILDER

CO-LIVING shifts that matter

Co-living is common among young professionals, but what about single parents? An Orléans-based startup believes communal housing can provide huge benefits to those raising kids on their own. Commune offers rental apartments for single parents with one or two children, within a shared building. Each family’s private unit is furnished and features a kitchenette, bathroom and bedrooms for the parent and their offspring. Residents share a large kitchen/living area, playroom, laundry room and garden or terrace.

Included in the rent are high-speed internet, streaming services like Netflix and Disney+, cleaning of shared spaces, DIY help and legal assistance. For an extra fee, parents can access babysitting, meal prep, activities for kids, ironing and transportation to school.

Two buildings are currently under development, with the first to open in September 2023 just outside Paris. Commune plans to expand to 500 buildings within a decade, each housing between 20 and 25 families.

With housing costs soaring, the demand for alternate forms is growing, and “dorms for adults”, as co-living arrangements are often called, are on an upswing across the country. The number of bedrooms either available or in development across the country surged 20 percent to 74,000 in 2022, from about 62,000 in 2020, according to data from Cushman & Wakefield.

NY TIMES

In France, one out of four families is single-parent, which increases to one in three for those in the Paris region.

COMMUNE TO OPEN IN PARIS IN 2023

OFF-SITE CONSTRUCTION shifts that matter

TWO KEY DRIVERS ARE LEADING TO MORE OFF-SITE HOUSING CONSTRUCTION: (1) labor supply issues, and (2) the fact that the predominant Millennial homebuying market attaches less negative stigma to factory-built or engineered housing solutions. In fact, Millennials tend to see

A McKinsey & Company report suggests the market for modular could reach $130 billion, or about 14% of all construction, in the U.S. and Europe by 2030, assuming a moderate rate of growth.

Dozens of labs around the world are paving the way for a future of construction sites where swarms of drone “cooperatives” will work together to create large 3D printed structures made of foam or concrete. The idea of employing swarms of “worker” drones on construction sites draws inspiration from biomimicry: to be precise, from the observation of wasps and termites.

FUTUROPROSSIMO.IT

MIXED-USE EVOLUTION shifts that matter

X Phoenix is a curated community for collaborators, makers, and doers who want to connect and inspire each other. Choose between a thoughtfully designed private apartment or share a fully-furnished co-living suite with your own bedroom and bathroom.

IHG is noticing a strong demand for branded residences across their luxury and lifestyle portfolio - driven by the desire to live a hotel lifestyle 24/7, especially with the work-from-home shift.

PHOENIX

X PHOENIX

BUILDERS DESIGN

SUSTAINABILITY STRATEGIES shifts that matter

Aeromine says its “motionless” rooftop wind energy units deliver 150% as much energy for the money as solar panels, while taking up 10% of the roof space.

AEROMINE

As with traditional wind turbines, size is key. So, while Aeromine’s wind energy boxes take up a relatively small footprint on the roof, they are still bulky. The good new news is that they don’t create the noise, or the constantly moving visual distraction of a regular, bladed turbine, so they may prove to be less unwelcome in populated areas. It’s very quiet, very safe and very cheap to build; you don’t need any fancy materials like carbon fiber, there’s nothing special about the fan itself, and the whole thing comes apart for transport and a relatively simple construction process on site.

Simsbury Center is the first building with a condensing boiler that generates free energy. The special condensing boiler is equipped with a mini power plant to convert the waste heat into electricity.

Simsbury Center, a condo building in Hartford, Connecticut, installed a revolutionary new heating system. Essentially, it generates free electricity thanks to the energy-saving technology of a local company, the Enviro Power. The SmartWatt condensing boiler converts heat that would otherwise be lost into useful electricity.

The former hotel has been converted into 21 luxurious apartments with the aim of minimizing the environmental impact. The SmartWatt condensing boiler can generate clean energy with 98% efficiency (HHV). Using existing heating infrastructure, the condensing boiler is designed as a solution that practically pays for itself by lowering the energy costs of a building.

Part of this energy will be injected into charging stations for electric vehicles, installed as an exclusive property of the condominiums in the 50-car parking lot.

Replacing existing heating systems with advanced electricity generation solutions is a good step towards decarbonization. The SmartWatt condensing boiler can be installed and maintained at similar costs to a normal heating. And it replaces existing boilers without further investment.

SIMBSBURY CENTER

SMARTWATT CONDENSING BOILER

WELLBEING shifts that matter

GreenCity Solutions are based on the idea of combining nature with digital technology. The natural ability of living moss to filter fine dust, bind climate-damaging greenhouse gases and cool the ambient air is utilized. The interaction of sensors, intelligent ventilation, irrigation and software increases the natural purification capacity of moss and makes it usable and measurable.

The Waverly provides a rooftop beehive, plantbased, cold-pressed juices and kombucha in their fitness center; and access to virtual healthcare with Cleveland Clinic Canada.

Toronto multifamily community

The number of multifamily buildings pursuing health and wellness certifications such as the WELL Building Standard and Fitwel has skyrocketed during the pandemic, but owners and operators aren’t seeking them out just because it’s the right thing to do. Renters stay longer in multifamily developments with wellness certifications. MULTIFAMILY DIVE

Science-backed organizations offer developers the ability to measure the health and wellness levels of their communities by certifying them for the WELL Building Standard and Fitwel certifications.

Philips SkyLight from Signify Design Team brings the benefits of natural light to people at home. Using biophilic design principles, these lights reconnect people to the qualities of outdoor light that are so crucial to their wellbeing. The system restores the natural light balance present in the sun and the sky and offers a virtual view of the outdoors, improving the livability of indoor spaces that lack good access to natural light.

Water filtration is not just about water softening anymore, it’s about safety and contaminant removal, coupled with good taste and peace of mind.

PHILIPS SKYLIGHT – SIGNIGY DESIGH TEAM

BUILDERS DESIGN

THE PRIVATE SPACE shifts that matter

Residents are looking for units that offer flexible space that meet the needs of both living and working from home. Eighty-seven percent of residents consider amenities when signing or renewing a lease.

BUILDERS DESIGN

BUILDERS DESIGN

THE COMMON SPACEWORK shifts that matter

Next year is going to be the year of transforming coworking spaces into smart dynamic areas, using the latest technologies and new wireless devices.

The Steelcase Learning and Innovation Center in Munich used key design strategies of density, geometry and division to create open, shared spaces that allow people to be safe and feel safe.

Shared social and collaborative spaces easily respond to design challenges by providing greater flexibility for physical distancing and circulation patterns.

STEELCASE

KANTAR

BUILDERS DESIGN

BUILDERS DESIGN

STEELCASE

THE COMMON SPACERELAX shifts that matter

THE TOP FIVE RESIDENCY EXPERIENCES FOR 2023:

• Package delivery services

• Work friendly options (in unit & common areas)

• Amenities supporting wellbeing & sustainability

• Energy efficiency in appliances and the building

• Wider adoption of AI in building management

Listening rooms are one of the best interior design trends spotted on the horizon for 2023. Music is universally recognized as one of the best ways to help us relax and unwind, and with more of us incorporating spaces in our homes that nurture our wellbeing, it comes as no surprise that these rooms are becoming more popular. LIVING ETC.

Designed by Office of Things for Google’s Bay Area headquarters, the bunker-inspired meditation chambers combine technology, light and sound to create a meditative effect.

GOOGLE HAMMER & HAND LISTENING ROOM

THE COMMON SPACELEISURE shifts that matter

BUILDERS DESIGN

Flexibility is key in floor plans, furnishings, meeting, and co-working spaces. Look for communities to decorate their model homes in new, creative ways, showcasing how residents can adapt the space to their work-from-home needs. Expect changes in common area spaces to satisfy remote workers, such as dedicated “Zoom Rooms,” private, quiet spaces where residents can take virtual meetings.

MULTIFAMILY INSIDER

In properties such as The Pearl of Silver Spring MD, residents enjoy an onsite 5,000 square foot farm with organic grown vegetables, a community kitchen to prepare fresh home-cooked dinners, and weekend demonstrations from local chefs.

BUILDERS DESIGN

THE COMMON SPACEFUNCTION shifts that matter

Alfresco EV Charging is a traffic barrier system furnished with an Electric Vehicle charger. This will make a sidewalk outdoor dining safer than ever and EV charging more accessible than ever.

Alfresco EV Charging is a concept design winner of the Core77 Design Awards 2022; by Yoonjae Song

School ArtCenter College of Design

THE COMMON SPACEshifts that matter

TerraCycle is working with Walmart to pilot a new recycling collection program, which will see package recycling hubs set up so that consumers can easily recycle everything from beauty product containers to pet food packaging.

MAKING

IT EASIER TO RECYCLE

One 64-unit co-op in the Gramercy Park section of Manhattan has turned recycling into a near science. They have designated areas in their basement for hard goods such as glass, dishes, and pottery, with another for kitchen equipment like pots, pans, and appliances. They even have a book exchange and clothing and electronic (computer) waste catch bins obtained through the City Department of Environmental Protection (DEP). The board president reports that the effort has had excellent results. COOPERATOR NEWS

THE CHANGING MARKET future think

NEW NECESSITIES 2023/2024 Online Purchasing Solutions

The latest index reveals that nearly 59 million parcels were generated in the United States every day in 2021, which translates into 683 packages per second. PACKAGEEX.IO

Refrigerated cold storage to allow for food and grocery delivery services are being introduced into the mail pickup area.

KLAFS INFRARED SEAT

THE OUTDOORS shifts that matter

Fire pits and lounge areas, outside unit storage, and covered parking are some of the most common amenities in a multifamily housing development.

For new-construction projects, we are seeing flexible indoor-outdoor spaces designed to increase resident amenity participation as well as promote health and wellness. Ways this is being incorporated into a design include using retractable glass for a rooftop fitness studio so it can be opened or closed depending on the weather; installing exterior NanaWalls that fold to the side to create indoor/outdoor spaces; or creating a rooftop running track that follows the perimeter of a green roof featuring landscaping and trees to offer 360-degree views and shield joggers from inclement weather.

We’re also seeing more envelope pushing when it comes to conventional ideas of outdoor amenities. For example, a rooftop pool that residents can use all year is a fairly new concept in a climate like the Midwest, but one that we’re sure to see implemented soon.

DAVID HOVEY JR., PRESIDENT OPTIMA INC.

ROOFTOP GYM WITH RETRACTABLE GLASS – FROM GIROUXGLASS

THE SMART BUILDING shifts that matter

Safety and security remain the leading purchase drivers of smart home devices. Smart door locks and smart access control systems provide a foundation of security by helping consumers and building owners/operators monitor and secure the primary access points.

OEMs are working with real estate developers to include smart access solutions as a standard part of smart home packages and home control platforms.

Highly Appealing Functions of Smart Door Locks for MDUs

Among US MDU Property Managers and Owners

Amazon has introduced the addition of Ring Intercom to its list of smartphone offerings. The product is designed to be an add-on to existing apartment intercom systems. The company has created a quick online questionnaire to determine whether your existing system will work with the new product. Operating over Wi-Fi, the system fills a bunch of roles, bringing Remote Unlock for trusted users, along with the ability to create a roster of “shared users,” who will be able to buzz themselves into the building, via the app. TECH CRUNCH

TECH ENHANCED shifts that matter

In addition to their digital expectations, younger tenants are highly motivated by affordability. They want low utility costs and high value. This presents a great opportunity for investment in smart tech, such as smart thermostats and leak sensors. When coupled with property-management software to optimize automated collaboration between operators and residents, this investment decreases utility costs and increases value for all.

BBC MAG

Bathroom supplier HiB has unveiled the new Sound cabinet, which features integrated speakers and Bluetooth connectivity. It allows users to stream music, podcasts or audio books, as well as enabling them to charge devices using an integrated USB and two pin charging sockets. In addition, the Sound cabinet boasts LED illumination and heated pads to reduce condensation on the mirrored surface.

SOUND CABINET FROM HIB

“Details create the big picture.”

SANFORD I. WEILL

BUILDERS DESIGN

What’s IN

creating the next evolution of multifamily

BUILDERS DESIGN

STATEMENT soft shapes are the new

Fluid, organic lines soften common spaces

OUT: harsh lines and angles

What’s IN

What’s IN

KITCHENS conversational

Soft shapes and curves redefine kitchens, creating cozy spaces for conversation

OUT: kitchen spaces without ample, comfortable seating

BUILDERS DESIGN

MINDFUL multifamily goes

Meditation/yoga spaces and massage rooms are new mindful amenities adding a calming element to the clubhouse

OUT: collaborative spaces without quiet spaces

What’s IN

BUILDERS DESIGN

LEISURE luxe

Leisure elements are incorporated into environments in a luxe way –no need to be hidden!

OUT: playful elements relegated only to workout zones

BUILDERS DESIGN

BUILDERS DESIGN

BACK ROOMS bolder

Back of house spaces are getting greater design attention

sleek package storage

fashionable fitness rooms

STORAGE stylish

Open storage started in the kitchen for function but now has become a style statement throughout spaces that is also easy for residents to use

OUT: storage that is hidden or inaccessible to residents

What’s IN

PRIMARIES punchy

Color is making a comeback and creating a room-defining wall in primary suites is a great way to differentiate the unit

OUT: ignoring design in the primary suite

SPACE blue

Beyond water amenities, interior spaces also dive deep into ocean blues as a new driver for nature and design inspiration

OUT: green space without the blues What’s

BUILDERS DESIGN

BUILDERS DESIGN

What’s IN

CONQUER divide &

Clubhouse spaces take a cue from residential plans which are shifting from completely open spaces to more defined zones like this space below with flexible barn doors

OUT: the all-open clubhouse

“The greatest architecture is building character.”

LEWIS F. KORNS

BUILDERS DESIGN

MULTIFAMILY building character in

RH - GUESTHOUSE

RH - GUESTHOUSE

the dining room

HOME no place like

Commercial spaces of all kinds are adopting home-like environments full of coziness, character and comfort

the un-lobby

the cozy store

ALD LONDON

OSBORN HOUSE HOTEL

OSBORN HOUSE HOTEL

CELLAR AT KINDRED LONDON

Camp inspired firepits are the new focal point indoors & out.

GENSLER

GRAND EMILY HOTEL

THE LONDONER

GENSLER

BUT BETTER like a backyard,

Outdoor basics focus on CONNECTION

As we continue to focus on facetime, new seating configurations make their way into functional rooms. This shift to a more conversational, squared island is one to watch.

MARINE LANDINS VANCOUVER

GAME TABLE UPGRADE

Playful game tables get a grown-up upgrade in high quality materials

CAMPGROUND INSPIRED

Simple firepit gathering spaces

SEAMLESS CONNECTIONS

Full-length openings to outdoor balconies

FLEX ZONES

Flexible outdoor spaces

ALBATROSS BOUTIQUE HOTEL

THE JUNCTION

MIRA - GENSLER

blurring the lines between

Outdoor pavilions become indoor rooms

KETTAL:

ALFRESCO the

Dining spaces borrow exterior materials like terra cotta and glazed tiles to give the interior an outdoor feel

“Olive trees and terracotta tiles create the impression of dining al fresco.” DEZEEN

ACE HOTEL TORONTO

KALI COFFEE

CASA DANI

SHAPES THE BLOCK biophillia

Green facades take over neighborhoods and streetscapes with bold greenery

MULTI-PURPOSE parking goes

A busy San Pedro street dominated by parking is re-invigorated with greenery, seating and micro-retail

MOMENT SAN PEDRO - GENSLER

MOMENT SAN PEDRO - GENSLER

from conversation pits to

WONDERS natural

Greenery and plant-based spaces are the new artwork, used as accents in design

SCULPTURAL PLANTERS

Freestanding planters in on-trend hues

GREEN SEATING Park inspired furnishings with integrated planting

LIVE WALLS Greenery as artwork

ALLSTEEL - NEOCON

GREENMOOD

DAVIS FURNITURE - NEOCON

MODERN soft is the new

Eased lifestyles inspire a softening in shape, color and texture

‘softlife’ has over 400K views on TikTok

MUST HAVES soft living

ACOUSTIC LIGHTING Sound dampening materials mixing with lighting for dual purpose

STANSONS ITALIA

FINE TEXTURES

Thin, linear reeded lines add subtle texture

FORMA TORONTO

SOFT SEATING Plush, curved furnishings

BUZZISPACE

ARHAUS

CALLIGARIS MATT SANDERS

STONE AGE the next

is here

Stones are grounding forces in modern design, bringing elemental roots to urban spaces and places

MORRIS ADJIMI

CHEMETAL

‘LIVE’ STONE EDGE

STONE INSPIRED SURFACES

ALPHALUX - COVERINGS

STONES AS SEATING

STATEMENT SLABS

HUDSON VALLEY

KELDA SHOWERS – BUBBLE SPA

CASA BELLA

WATER WOW FACTOR is

the new

Water as a feature moves to the next level, highlighting unique layouts and inspired textures

CASA BELLA

HUDSON VALLEY

ALPHALUX - COVERINGS

WATERY TEXTURES

CHEMETAL

WATER AS A LUXURY

KELDA SHOWERS – BUBBLE SPA

CASA BELLA

MUST HAVES meta

LED ‘DIGITAL SKY’

ZEN CIRCLES

GRADIENT ACCENT WALLS

POWER HRG

JOHNSTON ARCHITECTS

BATH the textured

The textured aesthetic moves into the bath creating a new design statement

GESSI

MANDARIN STONE

CHARACTER creating

with

color

Directional color combinations for multifamily spaces

BUILDERS DESIGN

COLOR GROUPINGS

Campground Hues

Modern shaker meets retro casual in this fresh take on a primary palette where back to basic colors have a vintage twist.

* DHURRIE BEIGE SW 7524 BUTTERNUT SW 6389

OAKMOSS SW 6180

LUPINE SW 6810

LAGOON SW 6480

* INDICATES FROM NEW 2023 COLORMIX FORECAST

BRICK PAVER SW 7599

SESSION STUDIO

WONDER LOCKE MUNICH

SCP – CAMP CHAIR

Neutrals with Depth

Warm neutrals continue; however, deeper color tinted hues are fresh and directional.

*REDDENED EARTH SW 6053

ROOKWOOD ANTIQUE GOLD SW 2814

AURORA BROWN SW 2837

DOWNING STRAW SW 2813

MAREA BAJA SW 9185

*MINERAL GRAY SW 2740

NOTE DESIGN STUDIO

SOHO HOUSE NASHVILLE WOUD

Deco Nature

Nature in the city is the inspiration behind this palette with a focus on deep color in lush greens, reds, petrol blue and rich ochre. These color stories do well in tonal applications.

* INDICATES FROM NEW 2023 COLORMIX FORECAST

ELITIS ROCKWELL GEKKO

RITZ CARLTON NOMAD

BRAVADO RED SW 6320

GEORGIAN BAY SW 6509

LEAPFROG SW 6431

RENWICK GOLDEN OAK SW 2824

HUNT CLUB SW 6468

ROOKWOOD RED SW 2802

NAUMI STUDIO HOTEL

Meta Mood

Nature and technology come together through soft, color-infused neutrals grounded by a deep earthy red.

* INDICATES FROM NEW 2023 COLORMIX FORECAST

CASALA

CASALA

*SILVERMIST SW 7621 BEIGE SW 2859

ICY SW 6534 BLACKBERRY SW 7577

*PEDIMENT SW 7634

*STUDIO MAUVE SW 0062

Bio-Blues

A rich, layered oceanic story with sea salt blues and teals paired with a warm sandy neutral.

*SHIITAKE SW 9173 RAINWASHED SW 6211

GREAT FALLS SW 6495

NOTABLE HUE SW 6521

*PEACOCK BLUE SW 0064

*INDIGO SW 6531

* INDICATES FROM NEW 2023 COLORMIX FORECAST

MIRAGE - COVERINGS HCM ARCHITECTS

Elemental Earth

Rugged yet sophisticated terra tones pair up with warm, yellow-cast greens and a cool slate blue.

* INDICATES FROM NEW 2023 COLORMIX FORECAST

NYA NORDISKA WORKSHOP APD

PERSIMMON SW 6339

CRAFTSMAN BROWN SW 2835

GOLDEN RULE SW 6383

*ROOKWOOD MED. BROWN SW 2807

LEMON VERBENA SW 7726

*KALE GREEN SW 6460

FATHOM ARCHITECTS

AURORA HEADQUARTERS

“Everything is connected, everywhere, all at once. The smart home continues to evolve. Brands are developing ecosystems for their devices to link televisions, soundbars, air fryers and smart bulbs, and heating via a smartphone hub; consumers can control everything with the touch of an app. This connectivity has spread throughout the household to vehicles and homeware products.” THE DRUM

BUILDERS DESIGN

‘PROP-TECH’ increase in

“The multi-dwelling market for ‘PropTech’ is new and rapidly growing. Our research shows 84% of property managers/owners intend to install internet-connected devices on at least one property in the next 12 months,” said Elizabeth Parks, President and CMO, Parks Associates

More than half of MDU renters are willing to pay extra for an apartment with smart capabilities and amenities, which would also include a system that allows them to add their own devices without limitations or needing approval.

PARKS ASSOCIATES / DEALERSCOPE

CHARGING TECH a need for EV

In a poll of attendees at the Apartmentalize 2022 Conference, 80% reported seeing at least one electric vehicle at their multifamily communities. Almost half had seen more than four and a quarter more than eight. A survey by Trammell Crow Residential cited in the presentation revealed that while most apartment residents own gas vehicles, many intend to buy a hybrid or electric car in the future.

In June, EV Safe Charge launched a mobile robotic electric vehicle charger ZiGGY, which also has the ability to display ads.

Hyundai’s new concierge service called ‘Hyundai Home’ that wants to make EV owner’s life more simple by bundling home chargers, solar panels, and even home battery systems through a one-stop marketplace platform was officially launched to the wider public in 16 states.

RETHINKING MULTIFAMILY FOR EVS: “Charging a car has more in common with charging your phone than it does with filling up your gas car.”

EV SAFE CHARGE HYUNDAI

ENTRANCE TECH a need for

Huawei has launched the Smart Door Lock Pro with AI 3D face recognition. Huawei claims that your door will unlock in under two seconds and that the device has only one in a million falsepositive results.

Liftmaster’s new Smart Video Intercom System simplifies access for small multifamily buildings.

Through the myQ Community app, residents have access to one-way video calling and two-way video voice communication to identify guests before granting access, recurring or one-time virtual guest passes, and a “press to unlock” feature that allows residents to easily unlock authorized entrances with their smartphone.

The average individual investor landlord has three properties and 45% manage their own properties making it a challenge to maintain visibility on their property’s status and security while ensuring residents have seamless entry.

LIFTMASTER / PARKS ASSOC.

LIFTMASTER

LIFTMASTER

HUAWEI

PET TECH desire for

In a poll of attendees at the Apartmentalize 2022 Conference, 80% reported seeing at least one electric vehicle at their multifamily communities. Almost half had seen more than four and a quarter more than eight. A survey by Trammell Crow Residential cited in the presentation revealed that while most apartment residents own gas vehicles, many intend to buy a hybrid or electric car in the future.

PETVATION

Petvation’s smart door uses facial recognition software and machine learning to automatically slide upwards when your pet is spotted and then close behind them. The new door is so smart that pet lovers can keep dogs out and let cats in, or vice versa. It even warns you via a connected app if unwanted critters like skunks attempt a break-in.

Halo Collar, a GPS dog safety system, has a wireless fence where you simply draw the invisible fencing boundaries on your phone and use the accompanying GPS enabled dog collar to keep your pet safe inside a defined perimeter.

HALO

CIRCADIAN RHYTHMS smart lighting for

“Increased awareness of topics such as circadian rhythm, biophilia, and wellness are putting a focus on personal health as impacted by our surroundings. Crestron Home technology uniquely supports this market and can help professional designers and installers bring these coveted solutions to their customers.”

Crestron’s SolarSync technology involves a sensor that is placed outdoors to send signals to the lights in order to have them match the natural light outside and, as such, be more in tune with our circadian rhythms.

Three fully tunable downlight LEDs not only offer the usual smart light personalization options we’ve come to expect: hue, saturation, color temperature, brightness and so on, they also offer users a more natural circadian lighting experience.

CRESTRON

CRESTRON

AS A SERVICE smart home

In what is yet another example of the smart home being paired with services, Vivint is partnering with water damage cleanup companies. Customers of the Vivint platform can have the Water Sensor Experience, which adds water and leak detection sensors to the home, installed at no charge. If the sensors determine there’s a leak, the homeowner will quickly get an email notification and be directed to a Vivint-trusted water damage company.

Kohler and Phyn are integrating their all-inclusive home water security system, H2Wise, with the services of Alarm.com. Homeowners with the H2Wise system can track water consumption and leaks directly through the Alarm.com mobile app. Owners can also add Phyn’s two smart water assistant devices, one of which can shut off the water supply upon leak detection. Toll Brothers will offer it for its new home construction projects.

HOSPITALITY multifamily takes cues from

EV Hotel developed the “smart hotel,” which incorporates technology, including a cryptocurrency trade-floor and non-fungible tokens guest rooms and lobby. Other tech elements include the company’s proprietary EV Smart app that automates hotel operations using a central control point over the guest experience including room controls, concierge and room service.

The EV Smart app provides control over 20 uniquely designed and integrated smart devices for in each guest room. EV Hotel’s “IoT Smart Rooms” allows guests to relay requests directly to hotel staff who can then respond in real-time, based on device specific data.

The app automatically provides alerts about problems, reducing guest disruptions and out of-service rooms and eliminating the need for preventative maintenance, saving both labor and equipment costs, all while providing energy savings.

SONOS

Incode has announced a new strategic partnership with Hoteza to offer seamless and secure hotel self-check-In through biometric authentication. Through the partnership, guests will be able to start the check-in process before arriving at their hotel destination through Incodes biometric verification process. Guests will experience an effective self-check-in process on the Hoteza Guest Journey Platform (a cloud-based content management system) using Incode’s integrated optical character recognition and its facial recognition technology, FaceMatch.

Alibaba will provide a facial recognition program, Fliggy, for biometric check-ins for in-country travelers at two Marriott International hotels in China. The self check-in process, consisting of an ID document scan, personal information entry and facial recognition check, takes less than a minute before keys are dispensed.

SAVE ENERGY smarter sensors

Novelda, a chip firm, introduced a low-power ultra-wideband proximity sensor that can detect when people are approaching a device, and then wake up the necessary device components as needed instead of having them run all the time. Novelda estimates this could save between two and 10 years on an LED screen’s life simply by turning it off when no one is around.

Kaadas is using an ultrasonic sensor that relies on timeof-flight (ToF) sensing from TDK-InvenSense for image recognition of a sorts to help create a smarter smart lock.

When a person walks up to a door, once the ultrasonic sensor determines that they are approaching the door it wakes up a processor that checks for image recognition. This is similar to the architecture found in smartphones that use facial recognition to unlock them; the camera isn’t always on, waiting for a face to appear, as that would waste power.

KAADAS

HYPERAWARE buildings become

DWELLWELL has launched a comprehensive maintenance solution that aims to take the guesswork out of property maintenance and serve as a ‘check engine light’ for homes.

The product provides remote monitoring and alerts for all major residential systems, including HVAC, electrical, and plumbing and also delivers a wideranging view of the home’s environmental aspects, including temperature, carbon dioxide presence, and humidity. By providing the opportunity to identify maintenance issues as soon as they arise—and eventually the opportunity to predict issues before they occur—Dwellwell enables users to address repairs proactively, reducing costs and averting major system failures.

The new Ecobee Smart Thermostat Premium has accurate sensors to detect presence and motion. The millimeter-wave sensor can tell the difference between a pet and a person. It also measures air quality for VOCs and carbon dioxide. If either the CO2 or VOCs reach a set level, the new Ecobee can turn on other devices such as a ventilator or dehumidifier wired to your HVAC to mitigate problems. Even if you don’t have a device like that, you’ll still get air quality alert notifications.

ECOBEE

DWELLWELL

DIGITAL TOOLS increasing use of

The Alcove marketplace has made signing a lease as easy as booking an Airbnb.

ZILLOW 2022 SURVEY

TOURS self-guided

Rently, a self-touring and smart home tech proptech, recently announced a new integration partnership to offer renters self-guided tours on Apartments.com.

The company says that the integration means prospective renters can tour potential properties without leaving the Apartments.com website, or through their own mobile devices.

“We believe the process of finding a new apartment should be made easy for renters and efficient for real estate operators. With our patented selfguided touring technology, Rently streamlines rental property viewing, increases overall property touring traffic by 25%, and reduces time on market by 75%.”

RENTLY CEO MERRICK LACKNER

OWN rent to

Belong is a three-sided marketplace that provides services for both homeowners that are landlords and renters.

The company wants to take residents out of “second-class citizen status” and connect them with homeowners “that want to give them a great experience” while those homeowners turn over management to the startup’s maintenance team. Renters earn 3% rent back, which accumulates in an account to be used on a down payment on a home through Belong’s platform. TECHCRUNCH BELONG

FINTECH increasing use of

Renters using Zillow’s new Rental Hub can search listings by move-in date, potentially saving them thousands of dollars in today’s ultracompetitive market. This new filter can better align the end of a lease with the start of a new one, eliminating the dreaded “double rent” scenario just as typical U.S. rents have crossed the $2,000 threshold for the first time.

FinTechs companies are trying to help with digital payments tools to alleviate the surge in rent costs. Rentdrop is a new mobile app to help with digital rent payments, letting tenants and landlords get more choice in how rent is paid.

Half of renters pay rent online and more (68%) would like to. ZILLOW 2022 SURVEY

ZILLOW RENTER HUB

SOCIAL MEDIA leasing through

Real estate marketer Rent., is offering a new page on TikTok to help property managers reach young renters.

The company’s account, RentSocial., will be a shared space for sellers who are looking to bring visibility to their properties. Owners will be able to run TikTok campaigns geared toward Gen Z and Millennials who frequent the app and are looking for footage showcasing the layouts of various rentals.

‘Casual ads’ are growing more popular with 76% of young consumers saying brands should make ads that fit in with what’s already on their feed. YPULSE RESEARCH

TikTok reaches nearly 30% of those aged 20 to 29 in the U.S.

COMSCORE

ARTIFICIAL INTELLIGENCE leasing through

At Funnel Leasing, we’ve seen that AI can handle around 86% of initial inquiries; and for the 14% of inquiries that need a little more assistance, leasing professionals are there to help. Ensuring a smooth handoff between machines and teams creates a scalable and excellent customer service experience.

FUNNEL LEASING CEO, TYLER CHRISTIANSEN

LeaseHawk has announced a new, higher level of artificial intelligence-driven technology to ACE, its cutting-edge virtual leasing assistant.

By using its advanced AI, ACE programmatically sends email and text follow-ups to prospects and residents based on where the renter is in their customer journey — requiring no extra time from leasing team members. It learns what is important and meaningful to individual renters, so every communication is personalized to their unique needs.

Knock® CRM, the leading CRM for multifamily property owners and managers, and MeetElise, the artificial intelligence-powered leasing agent software that streamlines leasing processes for close to 1 million multifamily units, announced their partnership and platform integration, providing seamless access to MeetElise’s AI technology through Knock’s platform..

SELF SERVICE leasing becomes

Tour24’s self-guided tour data shows that 64% of tours are same-day tours, and 24% happen within 15 minutes of scheduling time. 24% means the potential renter is right outside the community and wants to tour immediately.

PropTech innovator Tour24 recent funding series has surpassed the $11 million mark and the company has just completed an integration with multifamily artificial intelligence platform Hyly.AI.

Rently has optimized its selfguided tours with “wayfinding” technology to make rental tours easier to navigate.

KELLY WEARSTLER X JENNAIR

KELLY WEARSTLER X JENNAIR

HYBRID SPACE leasing space becomes

The goal recently has been to minimize the leasing footprint and the transactional experience of sitting down across a desk from someone, so as soon as potential residents walk in, they’re experiencing the club space and the co-working spaces. At the end of the day, the manager can lock up the small leasing area, and the rest of the space is available to residents 24/7. PAIGE BYRD, THIEL & THIEL

Now that most systems are paperless, leasing agents only need a couple of private offices in case residents want to have a conversation behind closed doors and a break room for employees. PAIGE BYRD, THIEL & THIEL

THIEL & THIEL

ACCESS ECONOMY leasing office part of the

Tulu provides on-demand rentals of home products and household items and offers micro-bodega style self-serve shops. The company’s product uses a bit of wall space in the lobby, lounge or laundry room in its buildings, and offers 24/7 access to products, including vacuum cleaners, e-scooters, bikes, VR headsets, etc. The product selection is customized to the needs and wants of the building occupants, who can rent or buy products through the Tulu app.

Tulu has closed a $20 million Series A round, 10 months after its seed round. The new funding will allow Tulu to pursue new partnerships with landlords and brands, to reach 1,000 buildings in existing and additional markets.

DIGITAL TWIN adoption of the

Willow’s recent partnership with Brookfield Properties at 1 Manhattan West is a prime example of how digital twin technology can drive new efficiencies in any kind of asset type. This tech has ensured management has been able to incorporate static, geospatial and live data into plans and maintenance, as well as easy access to smart building applications which can provide for, among other things, faster detection and repair of building issues and needed updates.

According to Markets and Markets, the digital twin market is projected to grow to $35.8 billion in 2025. The reasons are more than obvious: digital twins accelerate the leasing and selling of commercial and residential real estate. Landlords and developers decrease their vacancy faster, with a solution tailored to meet the new generation of clients’ requirements.

SAMSUNG

TO HAVE hottest things

MACRO

• The multifamily long-term outlook is strong, driven by demographic, economic and societal shifts.

• A wider consumer base brings broader expectations for how space can live larger – both in-unit as well as within common areas.

• Amenity diversity continues to address new lifestyles – such as EV chargers, cold storage lockers, Zoom rooms, playrooms, private outdoor space and smart technology.

• Younger adult generations have new variables when choosing where to live (climate change) and which multifamily developments to choose (multigenerational design, outdoor private space, work options).

• The future has arrived: solar windows, creative package delivery, sustainable materials, water-saving initiatives, etc.

TECHNOLOGY

• Technology in multifamily addresses new lifestyle needs and expectations including electric vehicles, pets in the residence healthy and wellness and ease of access,

• Biometrics become more mainstream, multifamily should look to the hospitality industry for inspiration.

• Smart home as a service grows with mergers and collaborations between hardware and service providers increasing the expectation that residents can resolve issues quickly and confidently.

DESIGN

• Camp inspired firepits – inside and out.

• Curved sectionals and flowing lines to define spaces.

• Bring biophilia into all spaces, blurring the line between indoors and out with ‘conservation pits’ and sculptural planters.

• Create ‘Blue Space’ with water features and deep ocean hues.

THE “5-MINUTE” MULTIFAMILY SPACE

• Common space amenities become more important for work, play and relaxation; rising amenities include commercial areas (office, playroom, movie theater, gym, convenience store) coming into the development.

• Taking inspiration from Hospitality to bring new tech, unique amenities and lux design into multifamily; raising the bar from basics to desired.

• Future challenge is to find ways to reduce costs while investing more in the attributes wanted for a consumer base that will rent much longer than prior generations; focusing on outdoor spaces (common + unit), energy cost savings and innovative construction methods that can lower costs.

• Lifestyle shifts – aging population, more multigenerational living, younger generations & families renting longer – all lead to new demands. At the same time, more competition comes into this sector: BTR, co-living, etc.

ENTERING A NEW ERA OF SELLING

• The digitization of the leasing office is changing the physical space from a working space to a hybrid space for resident experiences.

• Rethink what a leasing agent will do in the future - The leasing experience has moved to an agent led process to a self-guided format with apps, virtual tours and online platforms taking the place of personnel.

• Artificial intelligence and the digital twin methodology change how residents will engage with the leasing and maintenance teams of the future..

CREATING CHARACTER IN MULTIFAMILY

Leverage the ‘homification’ of commercial spaces to create multifamily spaces full of coziness, warmth and character:

• The clubhouse as the new campfire – firepits inside and out.

• The Alfresco Kitchen, The Textured Bath.

• Soft living takes over modern spaces.

• The ‘Meta Mood’ is one to watch.

TAKEAWAYS key