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Designing for a Transforming Multifamily Market
A survey reveals the level of priority modern renters place on cost, amenities, location and other factors.
A combination of factors — including skyrocketing home prices and high interest rates, changing insurance policies due to climate risks, the rise of remote work and the burden of student loans — is contributing to a rental market that looks vastly different than it did 15 years ago. Multifamily developers are rushing to keep up by building affordable housing options to attract renters in this evolving market. But this raises a question: Do developers and property owners truly know what today’s renters value?
To better understand how designers can meet the needs of residents, landlords and developers, Corgan’s multifamily residential practice partnered with its research group, Hugo, on “Residency Reshaped,” a report that provides data and insights into this transforming market. The project involved surveying nearly 1,500 renters and conducting in-depth interviews with renters, building managers and developers to investigate the reality of renters’ decision-making, the desirability of amenities and design, and the impact of current economic conditions on renting versus owning.
The Sun Belt region has become critical to understanding the shifting dynamics of the U.S. housing market. With rapid population growth compared to the rest of the country, increased housing development and significant investment in rental properties, Sun Belt markets are at the forefront of nationwide trends. “Residency Reshaped” focused on renters, property owners and developers in six major Sun Belt markets: Atlanta, Austin, Dallas, Denver, Nashville and Phoenix.
Expectations vs. Reality
Two key questions underlie Corgan’s report: What do today’s renters actually want? How do those wants differ from assumptions held by owners or developers?
More than 70% of the renters surveyed by Corgan said they would be willing to pay higher rents in exchange for better neighborhood assets, in-unit amenities and shared amenities. Anatoli Igolkin via iStock/Getty Images Plus
While there is some alignment between the two groups, there are also certain areas where developers and owners are operating under outdated or false assumptions.
Cost vs. Amenities
According to a 2022 survey by The Motley Fool, only 18% of landlords believed renters valued specific features more than they did affordable rent. However, the same survey found that nearly half of renters said getting the features they wanted was a higher priority than paying less. In terms of design features that renters valued, modern buildings and appliances, spacious layouts, security features and guest parking all ranked highly in the 2022 survey.
Corgan’s research confirmed that while affordability is important to renters, needing more space and wanting better amenities are more powerful drivers for renters looking for a new place to live. In fact, more than 70% of the renters surveyed were willing to pay between $100 and $199 more per month for amenities across three categories (neighborhood assets, in-unit amenities and shared amenities), while less than 5% said they would not be willing to pay more for amenities. This suggests that developers can focus on targeted improvements to neighborhood assets, shared spaces and in-unit features, like upgraded appliances or green spaces, that support satisfaction and justify moderate rent increases.
Rethinking Location
While developers listed location as the most important factor in attracting renters, the surveyed renters put both affordability and amenities — especially amenities that help them to maximize value — ahead of location. Just over half of renters listed location in their top three attractors, with walkability, bike friendliness, public transportation access and nightlife commonly viewed as “must haves.” Convenient shopping, restaurants, grocery stores and green spaces were cited as other performance features that directly impact renter satisfaction.
When considering location, owners and multifamily developers should prioritize walkable, accessible locations near amenities for convenience. Designers should focus on incorporating and highlighting value-focused amenities like on-site gyms, saunas, coworking spaces and communal areas. These amenities enhance convenience and reduce residents’ external expenses while also increasing the perceived quality of the location.
Individualizing Shared Spaces
Owners and developers have traditionally observed a lack of interest in communal amenities and assumed that renters prefer personal amenities. Corgan’s research found that the most frequently used shared amenities include gyms, pools, laundry rooms, gardens and coworking spaces, emphasizing that shared amenities are most valuable to renters when they cater to individual routines rather than communal interaction. Renters prefer these spaces to enhance their personal lives and save costs on external alternatives, reflecting a shift away from communal expectations and toward individualized functionality.
Given that many shared amenities are seen as “must haves,” owners, developers and designers should focus on the quality and convenience of these amenities. Upgraded fitness centers, interactive technology and flexible scheduling of shared amenities (allowing renters to plan for their individual use of a shared space) can boost functionality and meet high expectations. Properties with exclusive features that cater to personalized experiences — like wellness and fitness recovery spaces or private modular workspaces — help these properties to stand out.
Tech Expectations
Emerging technologies like electric vehicle (EV) infrastructure and smart home features are quickly becoming renter expectations rather than perks. More than 60% of renters reported that they plan to own an EV within three years, so developers might consider prioritizing EV charging stations. Similarly, more than 70% of renters expressed a desire for smart home technologies, including appliances, lighting, voice-activated assistants, smart locks and security systems, thermostats, energy management systems and home automation systems. Future-ready developments that embrace these advancements will be better positioned to stay competitive and meet evolving demands.
Given these desires, developers and designers should begin integrating smart home technologies and designing flexible units that are adaptable for future upgrades. Similarly, installing EV charging infrastructure and providing diverse parking options helps to meet evolving demands, ensuring sustainability and long-term market relevance.
Designing for Retention
While attracting renters is key for a successful development, retaining them is just as important. The “Residency Reshaped” report revealed an interesting contradiction in what attracts renters versus what keeps them around (and happy). While renters ranked design and layout at the bottom of factors in terms of attraction, the top two drivers for renters remaining in their current apartment were satisfaction with the current size and layout of their unit. Likewise, wanting a different layout and needing more space were among the top three drivers for deciding to rent a new unit. Amenities can also be a make-or-break determinant: Wanting better or different amenities is a top driver for leaving a multifamily property, while liking current amenities is a top driver for staying.
Properties that offer a balance of well-maintained spaces, timeless designs and adaptable layouts are more likely to retain tenants, especially as renters consider long-term rental as an alternative to homeownership. Designers can focus on flexible apartment layouts with space for home offices or small personal gyms that allow renters to personalize their units with customizable design options, enhancing both functionality and living experience.
Rental Longevity
In Corgan’s 2024 survey, only 27% of current renters across three generations indicated plans to buy a home at the end of their current lease. As more renters find stability by renting over the financial gain of buying, their priorities are evolving. Understanding this shift means designing apartments with adaptable, spacious layouts and including high-value amenities that reduce external expenses. Future-focused smart home technologies that improve convenience as well as upgraded “must have” amenities will continue to grow in importance. By designing for these preferences, owners and developers can not only attract more tenants but also ensure renter loyalty in a competitive market.
Stephen Lohr is the multifamily sector leader at architecture and design firm Corgan.
