The who, what, where and why of pandemic apartment moves - by Chris Bruen
COVID-related disruptions and the economic, personal and professional changes that have resulted continue to unfold in the third year since the virus was initially identified. One of the most evolving aspects of this transformative event has been the housing market, both for homeowners and renters.
For many renters, in particular, the pandemic highlighted the value of certain home features and amenities while underscoring many of the benefits of renting and ultimately creating new living opportunities. Many of these national trends played out locally—especially in the New York metro area.
These shifts have the potential to influence real estate development and investment decisions. The recently released 2022 National Multifamily Housing Council (NMHC) /Grace Hill Renter Preferences Survey Report—the apartment industry’s largest resident survey—offers critical data and insights about what’s changed through the pandemic with data available nationally and for 79 individual metro markets, including New York.
Read on for some highlights from the Big Apple.
The Skinny on the Survey
Since its inception in 2013, the NMHC/Grace Hill Renter Preferences Survey Report has been the authoritative data source for apartment owners, managers, developers, industry suppliers, as well as architects, financial institutions and others seeking insights into the minds of renters.
This most recent version of the survey was conducted in September and October 2021, capturing a period of the pandemic when renters’ changing wants and needs had started to (perhaps temporarily) solidify. The national survey garnered more than 221,000 responses from renters living in professionally managed rental communities. Nearly 3,500 of these renter respondents lived in the New York metro area, which includes New York City along with surrounding areas in New Jersey and Connecticut.
Renter respondents answered questions on a variety of topics, including demographic information, desired features and amenities, the leasing process and management services. The majority (57 percent) of respondents were women and the largest group (at 44%) were between the ages of 25 and 34. The vast majority (83%) were employed full-time. Renter respondents spanned a variety of income levels, from less than $25,000 annually to more than $200,000, while the largest cohort (25%) had incomes of $100,001-$150,000. Of those surveyed in New York, 98% lived in apartments.
Remote Work Reshapes Preferences
Both nationally and in New York, remote work seems to be the driving force behind many pandemic moves. Nationally, of the respondents who moved in the past 18-months (60%), one-quarter reported that their move was due to a shift to remote work during the pandemic. An even greater share of New York recent movers (37%) said that a shift to remote work influenced their decision to move to their current apartment. While 27% said that they never work remotely, 55% indicated they worked remotely either every day or several days each week. More than half of New York respondents anticipated continuing to work remotely either the same amount of time or even more frequently in the future.
Working from home can also pose some challenges and respondents were sensitive to factors that could improve their home office environment. For example, 65% of New York respondents said flexible space in their units that could transform to fit different needs was either important or very important. But the value of work-from-home isn’t confined to those who currently do it; when asked whether they would consider using a shared workspace in their building, 41% of all NYC metro respondents answered affirmatively, suggesting that residents working from home also value workspace outside their units.
Renter respondents also showed strong interest in features that reflect the need for infrastructure that is better suited to the work-from-home environment. Among the most essential features in the survey were high-speed internet (91%) and soundproof walls (90%) along with noise-reducing windowpanes (86%).
From Parking to Packages
Other hallmarks of the pandemic have been the decline in the use of mass transit, leaving city dwellers more reliant on cars, as well as the uptick in package and grocery deliveries.
While vehicle ownership in high-density markets like New York historically trend well below national levels, parking remains a consideration for many renters. More than half of New York respondents (59%) said they were interested or wouldn’t rent without covered parking.
However, having secure, self-service package access to manage deliveries was much more important to New York renters. Almost three out of four respondents (73%) said they were interested or wouldn’t rent without that community amenity, making it the fourth most popular amenity after reliable cell reception (87%), a fitness center (75%) and a non-smoking building (75%).
Connectivity Is King
However, the pandemic also brought into high visibility the critical nature of connectivity in New York apartments. As previously mentioned, reliable cell service ranked as the No. 1 community amenity. In fact, it’s so important that 46% of New York respondents said they checked mobile phone connectivity while touring rental properties.
There are a myriad of factors that can influence cell phone reception reliability in the urban environments common in the New York metro area, so it’s perhaps not all that surprising that roughly one out of three New York renters (36%) described the cell service in their current apartment as “spotty.”
However, quality broadband infrastructure can provide renters with an alternative to spotty reception. Roughly 68% of New York respondents said they were using the internet to make phone calls daily. So, it’s not all that surprising that 91% of respondents said in-unit access to high-speed internet was paramount, making it third most popular feature after an in-unit washer/dryer and A/C.
Chris Bruen is senior director of research at the National Multifamily Housing Council, Washington, D.C.