The apartment industry is typically slightly behind the rest of the building industry, usually because what works in homes or commercial doesn't provide the same ROI for apartment owners. That tendency applies--somewhat--to smart home technology, too.
Hanley Wood's Kayla Devon dives into the world of smart apartments for our sister publication Multifamily Executive and finds apartment owners and their residents are pretty eager about the advantages of these tools. However, the industry is still trying to make the numbers work. Can owners charge more for a smart apartment? Are residents even willing to pay more when there's still a large lack of affordable apartments to begin with?
However, the option for apartments not to invest in smart technology could be damaging a few years down the line:
Millennials currently make up the largest single cohort of renters, and according to a new study from Bailey Brand Consulting, 74% of them believe technology makes their lives easier. And with the glut of Class A projects coming on line in the next few years, apartment owners and managers could find themselves fighting for these renters. And 10 years from now, they’ll be fighting for the cohort coming behind the millennials, who are even more tech-hungry.