It’s no surprise that Wi-Fi 7 is getting a lot of attention lately. When comparing Wi-Fi 6 vs. Wi-Fi 7, the latter boasts a new protocol with blazing-fast speed, higher capacity and lower latency.
As such, many multifamily properties are feeling pressure to upgrade their infrastructure to support this new standard. They’re worried about being left behind but also question whether an upgrade now is worth the investment. Will it matter to potential residents? Will it improve net operating income (NOI)? Will it provide a competitive advantage or raise the property’s market value?
For multifamily properties, the answer is no—at least not yet. For all its promises, upgrading to Wi-Fi 7 should be a low priority for property owners for now.
Here’s why and what you should invest in instead.
Wi-Fi 7: Overblown capacity, deflated demand
Wi-Fi 7 offers nearly 5X the data rate, plus broader frequency and channel size than its predecessors. This theoretically enables much faster data transmission and supports double the number of simultaneous device connections.
While higher speed and capacity sound great, we’re talking a massive upscale. For stadiums, concert venues, and high-demand enterprise environments, Wi-Fi 7 can alleviate bottlenecks and reduce congestion, particularly during large-scale events. But does your apartment complex really need Michigan Stadium-caliber Wi-Fi capacity? Most properties aren’t even close to maxing out their Wi-Fi 6 yet.
Not to mention, the “real world” speed and capacity of the network are still limited by your ISP. So, if the incoming bandwidth is only 100 Mbps, what good will a 46 Gbps Wi-Fi connection do for your residents? Plus, all of that excess capacity comes at a premium price: Wi-Fi 7 hardware costs about 30% more.
There’s also an energy efficiency consideration: Wi-Fi 7 draws more power, and if it’s not being fully utilized, it’s a waste of electricity. That means it’s costing you more instead of contributing to revenue.
Finally, according to the Wi-Fi Alliance, less than 6% of all new devices are Wi-Fi 7 compatible. For example, only the very latest smartphone devices even support Wi-Fi 7, and previous models are not forward compatible. With device upgrade lifecycles growing longer as innovation stagnates, most people won’t own a Wi-Fi 7 device in the next three years. Meanwhile, Wi-Fi 6/6E’s market momentum continues to grow, and all new devices are backward compatible.
For multifamily properties, that means even if you upgrade to Wi-Fi 7 access points, the vast majority of users will still connect at 5, 6 or 6E. And those Wi-Fi 6/6E APs will continue to deliver more than adequate service to residents at a much more affordable cost.
The Better Investment: Managed Wi-Fi
While there is an argument to be made for a Wi-Fi 7 upgrade “future-proofing” your network, the investment in hardware and installation is highly unlikely to yield a measurable ROI any time soon. Plus, Wi-Fi 7 product certification is still relatively new and uptake is slow. This limits your flexibility and could prevent you from leveraging vendor-agnostic upgrades or adding/expanding Internet of Things/proptech solutions down the road.
Instead of investing in tech for tech’s sake, the smarter move is to deploy managed Wi-Fi for your property, which delivers a direct and immediate ROI, higher NOI and resident satisfaction while keeping your options wide open for future upgrades.
Despite 87% of renters demanding immediate internet access upon move-in (which managed Wi-Fi provides), the vast majority of properties currently rely on retail Wi-Fi, where the ISP contracts directly with the residents.
The issue with the retail model is that it gives away access to your two biggest assets: your property and your residents. It also takes a significant factor in resident satisfaction—fast, reliable Wi-Fi—out of your control and eliminates a revenue-generating opportunity.
Including bulk Wi-Fi as part of the lease agreement is one option, but even this represents a missed opportunity for property owners who could offer premium Wi-Fi services, such as bandwidth upgrade opportunities for high-demand residents.
Managed Wi-Fi, on the other hand, opens the door to numerous revenue, efficiency and convenience opportunities, including the ability to offer residents instant, reliable connectivity upon move-in. Even better, that experience extends beyond their door with property-wide coverage that allows residents to enjoy a seamless connection no matter where they go on-property with no signal degradation or need to re-authenticate. And, if anything goes wrong, residents don’t have to deal with the hassle of contacting the ISP and troubleshooting service needs. Your service level agreement (SLA) dictates bandwidth delivery, response and mitigation parameters that ensure any service issues are addressed quickly to provide a better resident experience.
Wi-Fi 6 vs. Wi-Fi 7: Choose Sufficient Service without the Premium Price Tag
The primary objective for multifamily properties is to maximize NOI through revenue generation and cost control, and that requires fully leveraging your assets. You’ve already invested in Wi-Fi–why not fully leverage that first? The choice between Wi-Fi 6 vs. Wi-Fi 7 is clear.
Until the rest of the technology catches up, a Wi-Fi 7 upgrade will only drive up costs and deliver virtually zero appreciable benefits for you or your residents. Sticking with Wi-Fi 6 and instead investing in managed Wi-Fi ensures a proven boost in revenue and maximum efficiency and convenience for both you and your residents.
This article was originally published on Multifamily Insiders.
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.