Facing tighter margins, slower renter demand and elevated construction costs, landlords and developers are increasingly turning away from major new construction projects. Instead, they are tinkering with existing properties or optimizing new designs to make projects financially viable, according to CoStar.
Architects are focusing on strategies such as maximizing rentable space, adjusting unit mixes and deploying building prototypes to help developments pencil out in a challenging market.
Firms like Humphreys & Partners Architects and Dwell Design Studio are leading the charge. Dwell, an Atlanta-based firm, developed a product line called RAD (Residential Affordability by Dwell), which includes three- and four-story prototypes that can be tailored to a site's shape and topography. By increasing density, RAD can generate 22% cost savings on heated net rentable area and an average of $2.4 million in vertical transportation costs, giving developers a concrete advantage when budgets are tight.
Humphreys' Signature Designs prototypes similarly allow developers to fit more rentable units into a building's footprint while reducing unrentable circulation space. Architects are also experimenting with unit mix, adding more three-bedroom units or higher-density layouts to boost revenue potential.
Material choices and amenities are also under scrutiny. Architects are selecting lower-cost finishes, simplifying underused common areas and reusing preexisting site infrastructure where possible, all to ensure projects remain financially feasible. These measures free resources for key design elements, such as metallic accents, rooflines or canopy-covered entrances that help make a property appealing to residents.
Despite the focus on cost control, some developers continue to offer premium amenities to maintain a competitive edge. Firms like Woodfield Development balance cost-conscious design with features such as smart home technology, flexible workspaces and unique communal areas to differentiate properties in crowded rental markets.
Cost management has become essential as multifamily developers navigate supply overhangs, slower population growth in certain cities and persistent inflation, CoStar said.
By leveraging prototypes, smarter layouts, and targeted material and amenity choices — backed by measurable savings like Dwell RAD's 22% reduction in rentable-space costs — architects are helping developers move projects forward while controlling expenses, a trend expected to shape apartment development through 2026.
"We're looking at things like, what rating of sprinkler do you need for fire protection in a building while still meeting local codes," said Robin Bellerby of Humphreys & Partners.
"These are situations where you are over budget and you need to decide how to take $2 million, or whatever amount it is, out of the building."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.