For owners and renters of multifamily developments, there's a growing focus on sustainability and energy efficiency as people seek to reduce their impact on the environment. But goals like net-zero energy use cannot be met without innovation in behavior patterns. Smart home technology allows users to reach those goals through precise controls and automation. Builders on the front end of these multifamily construction trends, like green building design and construction and smart tech, will have continued success in the next year.
Multifamily market projections
In 2021, there were 467,000 multifamily units built, according to the National Association of Home Builders — up 19% from 2020. "This is a really strong market," says Danushka Nanayakkara-Skillington, assistant vice president for forecasting and analysis, NAHB. "Multifamily has definitely recovered compared to single-family."
According to the NAHB, overall housing construction is expected to rise by 2.5% in 2022. Multifamily starts are expected to be around 496,000, an increase of 6.3%.
The rising cost of single-family homes, caused by a shortage of inventory, is fueling the increase in multifamily construction. There just aren't enough single-family homes available to meet rising needs. "We don't have enough housing in the single-family market," says Nanayakkara-Skillington. "There's a housing deficit."
While responding to this shortage of inventory, builders will have to navigate a continuing labor shortage and rising material costs. "We are estimating that there needs to be around 61,000 new construction hires every month in order to keep up with the industry growth," according to Nanayakkara-Skillington. In addition, the aggregate cost of building materials is up 21% year-over-year. The lumber price increase is adding $7,300 to each apartment, and gypsum, steel, and aluminum prices have all jumped.
The necessity of sustainability
There is increasing government regulation regarding the effect of construction and buildings on the environment. Measures like the Construction Projects Regulation, European Green Deal and the Paris Agreement are forcing designers and construction companies to look for sustainable solutions.
Owners and renters will also continue to look for healthier buildings. Reducing the amount of chemicals used during construction should be a goal for all contractors. Products like low VOC paints, adhesives and other materials will help contractors keep their workers healthy while meeting the needs of the market.
Unfortunately, sustainable materials are not always budget friendly. Manufacturers often charge premiums for these materials due to changes in manufacturing processes and the cost of raw materials. If the sustainable materials are too expensive, project owners may choose not to use them, defeating the purpose. In a recent SAP survey, half of the engineering and construction personnel said lowering the cost of sustainable products would make the biggest difference in helping them meet their sustainability goals.
Sustainability is table stakes
As was recently mentioned in Forbes, Gen Z is increasing the demand for sustainability in buildings and materials. According to a recent study, Gen Z Shoppers Demand Sustainable Retail, a majority of shoppers in this generation prefer to buy sustainable brands, and they're willing to spend up to 10% more on sustainable products. As members of this generation enter the housing market, there will be continued pressure to meet sustainability goals for each project.
Integrated wellness options
Owners and renters are looking for spaces that promote wellness. This includes communal fitness spaces, pools or other health-promoting amenities. "Fresh air with proper filtration, low VOCs, etc. are clearly spelled out in LEED, WELL, and Fit well building certification," says Daun St Amand, principal at CallisonRTKL in an article for Forbes. "We look at these programs as a baseline."
Green building design and construction
Healthier buildings will continue to attract more renters and occupants. This includes physical healthiness, providing surfaces that are easy to clean, reducing chemicals and improving ventilation. Mental health can be addressed by providing a connection to nature called biophilia, spaces for socialization and amenities for tenants with pets.
Smart tech and net-zero energy usage
Energy efficiency and net-zero energy use will continue to be a goal for multifamily developers. Using energy efficiently reduces carbon emissions and saves renters money. Smart home technology is necessary to help occupants reduce energy use and monitor their progress toward net-zero.
Embracing net-zero requires innovation. Smart technology, controlled by one central device, is a critical component of achieving maximum energy savings. Centralized home controls connect the world of smart tech, measuring temperature, humidity, light and air quality. With this information, they're able to make decisions that enhance home conditions while also saving energy. Samsung's Family Hub provides occupants with the controls and flexibility they need to reach their energy goals. It syncs with Alexa, Nest and SmartThings to provide control over a variety of systems for a total smart home experience.
Helping families meet their goals
To navigate the increasing focus on sustainability and green building (specifically net-zero), multifamily home designers and builders will need to lean on smart technology like Family Hub. By allowing occupants to customize their energy settings and fully control their energy use, the hub helps families meet their personal sustainability goals.