As a whole, next-gen products seek to improve building practices by cutting time, labor, and costs from the construction process. Over half (52.2%) of multifamily builders, developers, and architects believe using these products will lower overall labor costs either now or in the future, according to MFE's exclusive 2017 MFE Concept Community study.
Of the respondents, 35.8% believe using next-gen products will eventually lower labor costs, but not until "many" more such installations are done.
Just 16.4% think labor costs are lower now when using next-gen products. These respondents said the products have reduced their labor costs by 15.1%.
However, almost half (47.8%) of the survey participants don't think using next-gen products will lower their overall labor costs.
The sentiment varied by region, with 20.8% of respondents in the Midwest saying next-gen products lower labor costs, compared with just 9.7% in the Northeast. In the West, 54.8% of respondents don't think next-gen products lower labor costs, versus 43.5% in the South.
While many still don't think using next-gen products will lower labor costs, nearly two-thirds (66.1%) of respondents said they achieve a higher sales price when they sell or rent buildings with next-gen products, making, on average, 15.4% more with next-gen products than they would on a “typical” project. Read more about next-gen product ROI here.
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.