Almost two-thirds of multifamily builders, developers, and architects say they expect using next-gen products to increase the average return on investment (ROI) by 11% over standard products. Specifically, 18.2% of respondents in MFE's exclusive 2017 Concept Community study ranked appliances as the next-gen product with the highest ROI.
Following appliances, 10.1% of respondents ranked HVAC and utility management products as having the highest ROI, and 8.8% said flooring (such as carpet, hardwood, or tile) and lighting fixtures garner the top ROI.
Internet/Wi-Fi connected products (7.5%); insulation (5.7%); modular construction (5.0%); windows or doors (3.8%); roofing, gutters, or water drainage (3.1%); and security, door locks (3.1%) were among the other items in respondents' ranking of the next-gen products they feel reap the highest ROI.
Apartment units featuring next-gen products help bring in higher rents—13.8% higher, on average, than typical apartment units, and 66.1% of respondents said they achieve a higher sales price when they sell or rent buildings with next-gen products installed.
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.