Multifamily construction involves putting up buildings for multiple families to live in. This is a trend that has been popular over the years for a variety of reasons. Multifamily construction projects ensure efficient utilization of space and produce cheaper housing units per family than single-family homes. While multifamily units are not new, some new trends are coming up in the sector. In this article, we explore some of those new trends and what may lie beyond 2022.
With the economy still recovering from the disruptions caused by the COVID-19 pandemic, there was a real need in the construction industry for more cost-effective construction projects. Wood frame construction offers a much more cost-effective alternative to concrete. Even better, it also enables faster construction which means that many of the challenges that came with using concrete are avoided. Wood framing also means that elements such as window frames can be built offsite and parallel to the construction of the main building. When done, they are simply transported to the site and installed. This saves valuable time and money without compromising quality.
This particular trend was mainly fueled by the COVID-19 pandemic but has since gained traction all on its own. People looking to buy multifamily units are increasingly choosing to do virtual tours of potential housing units. There are numerous benefits to this. It means that the struggle to schedule house tours is gone. Potential buyers can tour dozens of apartments at any time of the day which in turn leads to faster buying or rental decisions being made.
Given how much time people have spent indoors during the pandemic means that potential buyers of multifamily buildings are increasingly demanding luxury amenities as standard in their homes. Such amenities include rooftop decks, gyms, and other health-related facilities, high-speed internet and cable services, swimming pools, and much more. Property developers are reacting to this trend by ensuring that facilities that were rarely included in such properties are becoming standard.
Increased Numbers of Multifamily Housing
One of the predictions for multifamily units going into 2022 is that they are likely to grow in numbers. In 2020, it is estimated that about 370,000 multifamily units were built, which represents about double the number of similar units that were built in 2019. We predict that this trend will continue into 2022. The challenge for developers will be how to meet this growing demand while at the same time ensuring that they are providing quality and value for money.
There are many other factors that will affect this industry in 2022. For example, the pandemic has kick-started a heated debate about rent caps and moratoriums. These are conversations that are expected to go on into 2022 and will play a part in how property developers approach the construction design and sale of multifamily units.