Emerging Trends Shaping the Future of Multifamily Development in the Southeast

In the evolving landscape of multifamily development, understanding the latest trends is crucial for developers, property managers, and investors alike. Nathan Long , PE, a Principal and Project Manager at Thomas & Hutton, shares his insights into the shifts and emerging preferences shaping this dynamic market in the Southeast.

Redefining Traditional Multifamily Developments

Traditional multifamily developments typically consist of three to four-story Garden Style apartments, each with 24-28 units and centralized amenities like swimming pools and fitness centers. While these developments offer convenience, they often fall short in addressing two major tenant complaints: noise from neighbors and a lack of a sense of ownership.

The Rise of Build-for-Rent (BFR) Communities

BFR communities have emerged as a popular solution to these issues. These developments typically yield 10-12 units per acre, with each tenant enjoying their own structure. This setup fosters a sense of ownership and privacy, enhancing tenant satisfaction by eliminating the noise concerns prevalent in traditional apartments.

Featured Development: Argent Cottages - Sands Building Group - Build-for-Rent (BFR)

Argent Cottages is a planned build-for-rent community in Hardeeville, South Carolina, featuring 345 units spread across 24 acres.?The development offers over nine layout plans with a coast-themed color palette reminiscent of a beach town.?Units are one to two stories and range in size from 585-2,245 square feet, ensuring a variety of living options.?The community includes numerous courtyards and green spaces, with centralized parking around unit corridors. A 5,000-square foot amenity building, situated on3/ 4 of an acre, will offer a swimming pool, yard games and gathering areas, a modern fitness center, and a strong Wi-Fi connection for residents to enjoy.

Featured Development: Cottages of Bloomingdale - Capstone Communities - Build-for-Rent (BFR)

The Cottages of Bloomingdale, a planned build-for-rent cottage-style community by Capstone Communities, will feature 263 units spread across 130 buildings on 32 acres. The development will offer a diverse product mix including carriage units, townhomes, cottages and studio lofts, designed to create a varied and visually appealing streetscape. Future residents will enjoy large green spaces and easy walkability to amenities at the community center, including tennis courts, a fitness center, a modern pool and workspaces.?The thoughtful design aims to promote a sense of community while providing a range of housing options to suit different lifestyles.?The Cottages of Bloomingdale will combine modern living with convenience and a touch of nature.

Townhomes as a Rental Option

Townhomes are another product type gaining traction in the rental market. Historically, these units were part of fee-simple, owner-occupied communities. Today, townhome rental communities are managed on a single parcel of land, offering tenants the benefits of community living without the responsibilities of ownership.

Evolving Amenities to Attract Renters

Modern rental communities are designed with more open spaces, fostering a sense of community and walkability. Key amenities?include:

• Green spaces and gathering areas that encourage social interaction and community events
• Smart connectivity with strong WiFi in units and common areas?
• Innovative workspaces, including digital meeting areas, electric vehicle charging stations, smart locks, and digital thermostats a
• Health and wellness including fitness centers, meditation spaces, community gardens, and juice or coffee stations
• Package delivery solutions including delivery rooms for online shoppers

Featured Development: North EdgeHill Commons - Origin Investments - Build-for-Rent

North Edgehill Commons is a planned build-for-rent, urban community by Origin Investments south of the Gulch in Nashville, TN which will feature up to 730 units. This sophisticated 5-building development seamlessly integrates two key trends: pedestrian-friendly design and publicly accessible open spaces. The community leverages pedestrian paths and greenways as inviting frontages for residential units, connecting the buildings and enhancing the streetscape. In response to municipal regulations, North Edgehill Commons dedicates ample open space, allowing for additional density while fostering community well-being. The scenic walking trail and dedicated dog park provide residents with a serene escape amidst the city’s hustle. Balancing urban living and comfort, the private swimming pool area offers a tranquil haven for relaxation and socializing, while street-level retail options reflect local flair, making metropolitan living convenient and vibrant.

Adapting to Economic Changes

With higher interest rates making home ownership more challenging, renting has become a resilient option during inflationary periods. Multifamily rentals offer a bridge between traditional apartment living and home buying, allowing families flexibility and mobility without the financial burden of owning a home.

Looking Ahead

At Thomas & Hutton, we foresee continued growth in the multifamily market sector across the Southeast, driven by the demand for better amenities and diverse rental options. As the industry evolves, staying informed about these trends is essential for providing value and meeting the needs of today's renters.

Key Takeaways

1. Focus on privacy and ownership feel with BFR and townhome models that address tenant concerns about noise and lack of ownership.
2. Enhance connectivity? by ensuring robust WiFi and smart home features to meet modern renters' expectations.
3. Prioritize community and wellness with intentional design that includes open spaces, green areas, and wellness amenities to attract and retain tenants.
4. Adapt to market demands by staying flexible and responsive to economic shifts, offering rental options that provide stability and mobility.

At Thomas & Hutton , we’re ready to help you design and implement innovative solutions that meet the evolving demands of today's renters. Reach out to our team today to learn how we can support your next project and turn your vision into reality.