The multifamily market faces economic uncertainty, from supply chain disruptions to tariffs, insurance premiums, tax policy changes and labor shortages. Recent research from NMHC illustrates elevated costs and increased risk continue to threaten housing affordability. Residents are also facing hardships with rents continuing to increase, cost of living going up and job cuts. Through all of this, occupancy rates are still a top concern for property owners, but with high mortgage interest rates, it’s forcing potential buyers into continuing to rent.
The industry is in a major re-adjustment period. Whether it’s new construction or retrofits, developers need to find a balance. How can they influence the profitability of their assets without increasing rents or occupancy rates?
Multifamily developers prioritize efficiency and cost savings with proptech decisions.
Let’s focus on three main areas developers should consider:
Energy Efficiency & Smart Metering:
Nearly 65% of multifamily properties with at least one smart device installed can expect 10% to 20% in operating expense savings. Think smart meters, programmable thermostats, security cameras and even automated window blinds. These can help residents manage utility consumption, save money and reduce their carbon footprint.
Additionally, when installed across the property in common spaces, it can make a quantifiable reduction in operating expenses. An example would be water leaks or pipes bursting during winter months while a resident in one unit is out. Even a small leak can waste 250 gallons of water per day. Early detection prevents extensive water damage and repair costs that can be substantial for multifamily buildings.
Safety and Security:
Safety and security are top priorities for prospective residents. Nearly 30% are willing to pay up to 20% more per month for these security features, including electronic locks, security cameras and smart doorbells. Additionally, these smart safety technologies provide cost savings by reducing maintenance costs, property owner liability and insurance premiums, and help to decrease the risk of vandalism.
Connectivity:
A reliable underlying network infrastructure is required to manage and support all of the proptech devices including smart safety devices, energy management, digital walkthroughs/self-guided tours, EV charging stations or any other IoT technologies that help a property run more efficiently.
More importantly, adopting Managed Wi-Fi does three things immediately:
- Creates new revenue streams, ancillary income, increased property values and resident satisfaction, which all can contribute to a higher NOI.
- Renters save money. With managed Wi-Fi, renters can save up to 50% on their Wi-Fi services, according to RETTC.
- It addresses rental preferences for Wi-Fi connectivity to increase resident retention. According to the 2024 NMHC Grace Hill Renter Preference Survey, 90% of renters are interested in or won’t rent without high-speed internet.
Nothing increases the value of an asset faster and in a more measurable way than the introduction of technology. With smart proptech decisions, properties can boost resident retention and satisfaction, while also enhancing safety, connectivity and efficiency. Integrating the right tech also creates more valuable properties and stronger NOI. Learn more about how Nomadix can help multifamily properties make a tangible and profitable impact.
Sandy Jack is director of strategic relations, multifamily, at Nomadix, an ASSA ABLOY company. With over a decade of experience in the multifamily industry, she is a passionate and trusted adviser, helping leverage connectivity and proptech solutions to help properties achieve their business goals.