At a recent conference on multifamily development, BMC Investment CEO Matt Joblon predicted big changes in the multifamily housing market during the next two decades. He said “co-living is a real possibility where people are sharing kitchens and common areas and just having bedrooms. I think that will evolve. Things will get smaller and tighter, and it will be more about the experience.”
The Future of Multifamily Housing
He compared this trend to Facebook where people are looking for a digital connection. He believes that co-living will enable apartment residents to connect in a more meaningful way. Joblon said he already sees this desire in the traditional apartment building complexes to connect with neighbors whereby residents develop a tight community through socializing at the pool and at gatherings at the clubhouse.
Mr. Joblon also predicts that technology will play a key role in how apartment buildings function and are maintained. Renters will be able to use their smartphones to lock their doors and order deliveries of groceries or other services to their apartment. He thinks that autonomous cars will also have a big impact in how apartment projects are developed.
“Major disruption is coming,” he said. “Technology is about to start exponentially evolving and impacting our lives. You will have to adapt to disruption and change to stay relevant. The person who takes the risk and gets ahead of it is going to be the one to nail it.”
Another speaker, McWhinney CEO Chad McWhinney, said “apartments are a great long-term real estate asset class to own. The key is to make sure that you have a lot of debt that is long-term. The key in this business is to make sure we don’t have a lot of short-term debt at any given time when real estate markets change. A banker will give you an umbrella, and when it rains, they ask for it back.” McWhinney has expanded investment into the multifamily portfolio with 866 units in Colorado with units ranging from luxury residences to micro-apartments. The company has plans to convert some of the apartment projects into condominiums.
SOURCE: https://www.bisnow.com, “Desire for Connection With Others Could Change Apartment Development, June 14, 2018 by Margaret Jackson
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