Survey: Next-Gen Products Make More Money for Developers and Builders

Nearly two-thirds (66.1%) of respondents to an exclusive MFE survey said they achieve a higher sales price when they sell or rent buildings with next-gen products.

Breaking down the findings further, 8.2% said they always achieve a higher price, while 25.8% said they do most of the time, and 32.1% said they do some of the time. Only 6.9% said they don’t achieve a higher price very often or never do. The remaining survey respondents said they do not sell or rent buildings.

Of the 66.1% who said they achieve a higher price, they make, on average, 15.4% more with next-gen products than they would on a “typical” project.

Looking regionally, next gen projects garner the biggest return in the South, with 74.2% of respondents saying they achieve a higher price at least some of the time.

The survey, conducted by our data partner on the 2017 MFE Concept Community, The Farnsworth Group, examines usage and perceptions regarding next-generation building performance. This year’s survey, which received responses from 159 multifamily builders, developers, and architects, sheds light on current conditions for industry professionals by addressing the following questions:

• What are the current trends in next-gen products?
• Which next-gen products are industry pros currently installing or considering installing?
• What efficiencies are being promoted to residents about these products, and how are they being communicated?

Given the myriad variables involved in producing housing, it’s always smart to prepare for the future. With that in mind, the 2017 Concept Community examines processes and products that can help close the gap on code, land, labor, and materials challenges by shaving time and cost from the construction process.

Over the coming weeks and months, we’ll share additional tidbits and stats from the survey in anticipation of the annual Multifamily Executive Conference, which will be held this year in September in Las Vegas.