Last week, the National Multifamily Housing Council hosted its annual Spring Meeting in Chicago where multifamily developers, investors, and financial strategists joined together to discuss the pressing issues impacting the industry. This year’s conversations focused on financial and capital market strategies to effectively meet the demand for 4.3 million new apartment units by 2035 (NMHC).
The multifamily market continues to face challenges in new construction while trying to address this need, including economic uncertainty, high interest rates, tariffs, rising insurance costs and increasing construction costs. In spite of this, the appetite for investments remains high.
Housing preservation and retrofits are becoming a focus for maintaining affordability. There is a definite shift toward this segment with Value Add (1990s or older) property sales up 25 percent. Owners and developers are investing in upgrading older buildings to create operational efficiencies (including energy management), modernize infrastructure and address safety concerns.
Positive news for the industry: retention is high. Renters are staying put and not wanting to make changes during this economic transition. Residents also tend to be staying longer as renters, not stepping into home ownership and out of the rental market.
Another important topic at the NMHC Spring Meeting in Chicago was the shift within the council, and its new branch the Real Estate Technology and Transformation Center (RETTC). This group aims to “revolutionize the way communities work, live and play with the responsible investment and deployment of cutting-edge real estate technologies.” Their mission is to help “communities achieve greater housing affordability and better outcomes through the transformative power of technology.” It’s a great movement that will help elevate technology initiatives for residents, properties and the broader industry.
I’m looking forward to continuing discussions headed into OPTECH later this year. If you are interested in learning more about Nomadix and our role in the multifamily space, please book a meeting or learn more here. Alternatively, if you are headed to Apartmentalize in June, feel free to stop by our booth #1466.
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.