Providing market intelligence for more than 35 years

In The News

Multifamily Residences Turn to Tech for Tenant Appeal, Efficiency: Report

Fast, secure, reliable connectivity is now an expectation at multifamily residences, according to a report released Monday by market research and consulting company Parks Associates and Xfinity Communities.

Many multifamily properties are looking at different ways to deploy and adopt connectivity technologies, noted Parks analyst Kristen Hanich, but they’re also carefully considering the financial results they can expect by rolling them out.

“They want to know what the return on investment [ROI] will be on operations,” she told TechNewsWorld, “and if they’re a short-term kind of investment company, how much will be added to a property’s value by rolling out some of these technologies.”

Hanich explained that many new properties under construction for the last few years are about to hit the market. “When they do, we expect that a lot of existing properties are going to have to compete more tightly for renters and residents,” she said. “So we expect that a lot of existing properties, older properties, are going to look at what amenities they can offer folks and see what they can do when it comes to some of these connected solutions.”

However, according to the Parks report, a lack of suitable pre-existing networking infrastructure is a top barrier holding multiple dwelling units (MDUs) back from widely deploying IoT.

Parks researchers found that 82% of properties 10 years old or older that offer Wi-Fi have difficulty maintaining device connections on the network compared with just 13% of newer properties.

The Parks report maintained that connectivity services must connect residents to experiences they care about: entertainment, work, safety, and smart living.

Furthermore, it must be ready at move-in, it added. According to Parks’ research, the majority of MDU residents say having internet ready to go immediately after moving in is “very important” in their next home. That ranks third among 16 amenities rated by consumers in the research, just after good insulation, soundproofing, and low-cost internet.

Parks also noted that more and more MDU residents are using smart home tech acquired themselves and from their properties. It explained that 22% of apartment renters and 58% of condo owners use smart home devices today, and these residents need modern networking services to support them.

Citing information from TBM Multifamily, an insurance and risk management firm, Parks noted premiums have soared 10% to 40% for multifamily property owners.

There is a growing trend towards insurance discounts for properties with connected solutions, such as water leak detectors. However, Parks acknowledged that this is still at an early stage, and properties may need to negotiate rates or change providers to see the full benefits.

From the article, "Multifamily Residences Turn to Tech for Tenant Appeal, Efficiency: Report" by John P. Mello Jr.

Previously In The News

How much will you pay to stream? ESPN, others test the outer limits as competitors file lawsuit

Nearly half of U.S. households canceled a streaming service last year, according to a study published Tuesday by the streaming media analysis firm Parks Associates, with the aggregate cost of those se...

Lacking Data and Tools: The 8 Barriers to OTT Insights

Parks Associates’ research illustrates the gap between the content performance data that media executives want and what they can access. From the article, "Lacking Data and Tools: The 8 Barrier...

The Crucial Role of Technology Partnerships: Helping Schools Flourish

The educational landscape has undergone a profound transformation. Classrooms, once adorned with traditional teaching tools, have evolved into digital hubs where connectivity is no longer a luxury but...

Your Smart Video Doorbell May Not Be Secure, Consumer Reports Testing Shows

Around 1 in 5 people age 50 and older own a doorbell camera, according to survey data from the Addison, Texas-based Parks Associates market research firm, figures that are roughly in line with all U.S...