From connectivity to wellness, these are some of the factors that draw in millennial renters to multifamily developments
Millennial tenants are leading the way with demand for more unique, community-building offerings and amenities. In order to create spaces that residents love and stay competitive in the marketplace, multifamily investors, developers, and builders must keep their finger on the pulse of the younger demographics’ demands for their living environment.
These are some of the key components of catering to the Millennial demographic:
1. Creative amenities: In addition to the standard amenities found at any luxury community (resort style-pools, fitness centers, etc.), multifamily developers should consider options that provide greater opportunities to build a community for residents.
We are incorporating unique amenity spaces such as karaoke rooms and speakeasies into our communities, both of which are highly in-demand atmospheres that residents typically leave their community to seek. These common spaces provide excellent venues for resident events as well as for private gatherings, and they help boost overall attendance and engagement.
2. Co-working spaces: As remote work and the “gig” economy become more prevalent, so does the need for flexible co-working spaces. From private conference rooms to dual-purpose co-working spaces, it is important to offer a multitude of options to accommodate the changing economy and the new ways people are working.
For example, at an upcoming multifamily development in Culver City, California, Cityview is incorporating a retrofitted, partially open-air Airstream RV into the design of the rooftop deck. It will serve as a co-working space during the day and a social gathering place at night, meeting the need for both creative amenities and unique coworking options.
3. Connectivity: Wi-Fi integration and enhanced connectivity are important aspects of providing the type of tech-enabled environment millennials require in order to facilitate coworking, on-demand entertainment, and 24/7 communication with friends and families. Whether it is a Skype business meeting, Netflix by the pool, virtual workout class, or food delivery, residents require fast Wi-Fi in all areas of their communities.
4. Submarket research: While millennials as a demographic share a host of commonalities, all are not created alike. Cityview conducts focus groups and utilizes market research and branding firms to delve deep into the qualitative needs of the specific neighborhood in which we are developing.
At our mixed-use project, The Pearl in Los Angeles’ Koreatown, smaller studios and one-bedrooms ranging from 350 to 600 square feet were in high demand. Younger renters in this submarket often wanted to live alone and were comfortable with sacrificing square footage for more robust amenities, as well as the opportunity to live by themselves.
In contrast, at our 240-unit Baker Block project in Costa Mesa, Calif., millennials sought two bedrooms to accommodate space for a roommate. Units required more square footage, but residents were able to save on rent by sharing their space. We built each community to meet these unique needs, which ultimately improved lease-up and tenant satisfaction. With submarket research, we were able to build products that cater to the specific community they are serving.
5. Full-size appliances: While millennials in some areas may be seeking downsized apartments, that does not mean they are comfortable with downsized unit features. We have seen that in-unit, full-sized refrigerators, washer/dryers, dishwashers, and other appliances are a must for younger renters living in luxury communities, regardless of total square footage, unit layout, or location.
6. Urban environment: In our demographic research, we have seen that millennials prefer to live in urban areas that are located near transit and education centers. Walkability score is a key selling point and we keep this in mind when selecting sites for development. Urban areas also tend to be conducive of high-growth employment opportunities, as well as the vibrant culture and nightlife that millennials crave.
7. Wellness: Health and wellbeing are more important than ever for millennials. Simply having a fitness center is not enough anymore. HIIT classes, dog yoga, and mommy and me workout classes are just a few examples of fitness offerings at our communities.
It is important to also include tranquil spaces for relaxation such as Zen gardens and hammocks. Green building materials and good air quality are other components that must be established during the building process. Going beyond the apartment community itself, shared bikes, readily available transit maps, and other amenities to help residents traverse the surrounding communities help foster overall resident wellness.
8. Resident events and services: In our experience, community events and services are the top drivers of resident retention, but they cannot be one-size-fits-all. Millennials in family-focused communities respond well to social events that incorporate children, while other demographics prefer karaoke competitions or yoga on the roof.
Additionally, residents often find value in apps that allow them to easily schedule services with a dog walker, personal trainer, private chef or other service provider. Regardless of what they are, well-executed events and services that are catered to your target market help build community for residents and makes their living environment feel like home.
All of these factors are key to unlocking what millennials want in a multifamily community and will ensure that investors, developers and residents alike get the most value out of a new multifamily development.
Melissa Bartolucci Delgado is Vice President of Asset Management at Cityview, a Los Angeles-based multifamily investment management and development firm dedicated to redefining urban living. Learn more at cityview.com.
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