Technology features andaffordable housing investment will be among the top trends inmultifamily next year. Apartment investors are seeing increasingdemand for in-unit technology features, like security systems andkeyless locks, that can be operated from their personal smartphone. Likewise, the increasing supply and development of high-endclass-A apartment buildings and the supply demand imbalances inhousing have created substantial investment opportunities forrental product that is moderately priced.

While in-unit tech features have been available, tenants are nowstarting to demand them. “Technology continues to be important,”Mitch Siegler, senior managing director ofPathfinder Partners, tells GlobeSt.com. “We'reseeing more properties with smart home features likeelectronic/keyless locks, camera/security systems, electronicthermostats, which can be operated from a smartphone. Adoption ofthese features is accelerating and many features, which arebecoming standard in new homes are also migrating toapartments.”

For affordable housing, there is a limited supply of moderatelyprices housing options, particularly in Southern California.Value-add investors see a particularly attractive opportunities inthis niche, because they have the experience to renovate andredevelop older apartment stock. “We believe there is a continuedneed for more affordable housing options,” adds Siegler. “There isa significant disconnect on the price that a new apartment coststoday to build or buy and the pricing for 1970's and 1980's-vintageprojects, which can typically be acquired for well belowreplacement cost.”

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.