Parks discussing modernizing multi-family in a slow market

PLANO, Texas —Economic pressures and high costs have seen a slow down for new constructions in the multi-family residential market, but a white paper released by Parks Associates for Kwikset shows owners and operators examining  enhancing their properties through technology upgrades.

Encompassing things like modern access control solutions, the white paper discusses the popularity of housing improvements to existing properties.

“Retrofitting is gaining momentum in multifamily housing,” Kristen Hanich, director of research at Parks Associates asserts. “While many companies deploying proptech and smart building solutions into multifamily properties report that new construction is the bulk of their projects, demand for retrofitting is soaring – especially for solutions that can be deployed in place without requiring additional renovations.”

Research in the paper reveals that as many as 87% of survey respondents plan to purchase, upgrade, or replace smart building solutions with the next year.

Several reasons are attributed to this growing trend, but the primary factors were found to be efficiencies of the upgrades resulting in reduced costs and attracting residents. Upgrades also present an opportunity for older properties to compete with new builds in attracting buyers.

“Retrofitting proptech improves property longevity and asset value, allowing for improved cash flow,” Hanich writes. “Owners and operators have reported seeing numerous benefits from their investments into proptech and smart building solutions.”

Additional statics reveal that smart building deployments increased operating efficiency by 20%, reduced operating costs by 18%, and reduced the occurrence of safety and security incidents by as much as 21%.

The full white paper can be found online at https://www.parksassociates.com/whitepapers.