Apartment developers are building increasingly larger units as the Multifamily sector adjusts to the rise in remote and hybrid work. The last 10 years have seen large incremental decreases in living footprints, but 36% of new construction across 92 markets are building units larger than ever, according to Yardi Matrix Data. The average increase among all units is 49 square feet, which is just large enough for a small home office. Two-bedroom units are the most likely to be upsized, gaining an average of 50 square feet per unit. Three-bedroom units are increasing by an average of 105 square feet.
“The pandemic and work-from-home has made people more conscious of the space in which they live and work,” Doug Ressler, manager of business intelligence at Yardi Matrix, told RentCafe. “The pandemic has significantly accelerated issues on designers’ minds well before 2020. These issues involve the rise of the home as a workspace, and a deeper emphasis on health and well-being.”
This is a positive change in the building industry, especially in urban areas where space is a premium. It allows renters the flexibility for numerous living arrangements and also provides enough space for renters to have a private space separate from common areas. Renters will be able to work from home without feeling as though they are living at the office.
Larger apartments are being built across all markets in the Multifamily sector, with the majority of larger apartments being built in medium-sized markets outside the larger metropolitan centers. Everett, Washington, for example, is leading the trend with the largest apartments under construction compared to those built in the previous five years. Home to a Boeing factory and located outside of the larger Seattle market, these apartments will have an average size of 1,195 square feet, compared to 928 square feet, which was the average size of completed apartments from the last decade.
How long will this trend continue? Depending on how long employees will be able to work from home is the defining factor of this trend. Larger apartments won’t be completed for a few years, but their extra space may no longer be needed for home offices once they are completed. If developers are going to build larger apartments, they must make sure that the additional spaces are able to be incorporated into the space, regardless of use.
Leave a Reply