Insights from Residency Reshaped Report
With hybrid work reshaping lifestyles, affordability challenges redefining priorities, and renters seeking more value from their living spaces, developers and property managers are navigating a landscape that looks vastly different than a decade ago. To better understand how designers can meet the needs of residents, landlords, and developers, Corgan’s multifamily sector partnered with our research group, Hugo, on Residency Reshaped, a report that provides data and insights into this transforming market.
Market and Renters Have Changed
The housing and rental markets are experiencing major impacts: skyrocketing home prices and high interest rates, changing insurance policies due to climate risks, the rise of remote work, and the burden of student loans are all factors reshaping the rental market and housing demand. Developers have responded by rapidly building affordable housing options to attract renters and meet these evolving needs. But do they understand what this new cohort of renter's value? By exploring topics including remote work, the importance of community, and the desire for - versus the actual use of - amenities, Corgan’s research provides insights into renter decision-making, the desirability of residential design, and the impact of current economic conditions on renting versus owning.
The Sun Belt region in particular has become a crucial focus in understanding the shifting dynamics of the U.S. housing market. With rapid population growth compared to the rest of the country, increased housing development, and significant investment in rental properties, these markets are at the forefront of nationwide trends. The Residency Reshaped report focuses on renters, property owners, and developers in six major U.S. markets in the Sun Belt—Atlanta, Austin, Dallas, Denver, Nashville, and Phoenix—to explore how these factors are determining housing trends, economic conditions, and the overall landscape of living and working environments.
What Do Renters Want Now?
To best convey renters’ desires, we took a myth-busting approach to our findings: What do today’s renters want? And how does it differ from assumptions made by owners or developers? While there was some alignment — affordability was both thought to be and found to be of high importance — there are areas where developers and owners are operating on outdated or false assumptions:
Enhance Walkability and Accessibility: Prioritize developments in locations that offer walkability or quick, barrier-free travel to neighborhood assets such as parks, retail shops, and dining options. Ensuring ease of access to these amenities aligns with renters' preference for convenience and lifestyle benefits, making the location more attractive.
Create Flexible Apartment Layouts: Include additional dedicated space for personal use, such as home offices or small personal gyms, providing residents with cost-effective solutions and functional spaces that enhance their living experience.
Incorporate Customizable Design Elements: Offer options for renters to personalize their units with different color schemes, fixtures, and materials.
LOCATION, LOCATION, LOCATION...
ISN’T WHAT IT USED TO BE
While the importance of an apartment’s location hasn’t waned entirely, it is outweighed by both affordability and amenities, especially those that help renters to maximize value. While design and layout was the least important draw for all groups and markets when seeking out a new residence, satisfaction with the size and design of the unit were the top drivers for renters who chose to stay in their current unit, winning out over convenient location and affordable rent. Properties that offer a balance of well-maintained spaces, stable rent structures, and adaptable layouts are more likely to retain tenants, especially as renters consider long-term rental as an alternative to homeownership.
Functional, Individual-Oriented, Shared Amenities: Prioritize gyms, pools, bicycle storage, and lounges with high-speed internet, tailoring these spaces to renters' personal needs and routines.
Purpose-Built Event Spaces: Design flexible indoor and outdoor areas specifically for hosting management-led events like fitness classes, seasonal celebrations, and workshops, ensuring adequate space, seating, and equipment storage with a dedicated social events manager.
Versatile Lounge Areas: Design adaptable lounges for dual purposes, such as relaxation and remote work, offering comfortable seating and charging stations.
SHARING IS CARING
While owners and developers observed a lack of interest in communal amenities and assumed renters prefer personal amenities, our research showed that shared amenities — such as gyms, pools, and lounges with high-speed internet — are valuable to renters but only when they cater to individual routines rather than communal interaction. Renters prefer these spaces to enhance their personal lives and save costs on external alternatives, reflecting a shift away from communal expectations toward individualized functionality.
Smart Home Integration: Install smart appliances, lighting, energy management systems, locks, and video doorbells that allow residents to control their environment via mobile apps, promoting convenience, sustainability, and peace of mind.
EV Charging Infrastructure: Install EV charging stations and pre-wire parking areas for future expansion, addressing growing demand in the next three years.
Diverse Parking Options: Offer a range of parking spot types, including reserved, covered, and visitor parking, to accommodate diverse renter needs.
THE FUTURE IS CLOSER THAN WE THINK
Emerging technologies like electric vehicle (EV) infrastructure and smart home features are quickly becoming renter expectations, rather than perks. With the majority of renters - just over 60% - planning to own an EV within 3 years, properties must prioritize EV charging stations, smart locks, and energy-efficient systems. Likewise, more than 70% of renters expressed a desire for smart home technologies including appliances, lighting, voice-activated assistants, smart locks and security systems, thermostats, energy management systems, and home automation systems. Future-ready developments that embrace these advancements will stay competitive and meet evolving demands.
Thinking Ahead, Staying Competitive
In today’s evolving rental market, renters prioritize spaces that offer both convenience and cost savings. Understanding this shift means designing apartments with high-value amenities that reduce external expenses, adaptable layouts for remote work, and smart home technologies that improve convenience. Including EV charging stations further enhances the appeal of properties in a sustainability-driven world. By designing for these preferences, owners and developers can not only attract more tenants but also ensure renter loyalty in a competitive market.
