What 5 elements belong in your clubhouse?

Design the perfect shared space with essentials your residents will actually use

Community space is often the first impression people get of a property. Those first impressions matter—they set the tone for the rest of your prospect’s experience and help them envision living there as a resident. When designing these common spaces, the amenities you choose can make or break this impression.

Well-designed community spaces can help you appeal to potential residents while encouraging your current residents to stick around longer. In this article, we’re sharing more about the five must-have amenities for every multi-family community space, including:

• The role of purposeful seating areas and furniture in shared spaces
• The importance of good lighting
• How to choose art and decor
• The need for technology
• The benefits of plants and greenery

Seating and Furniture

Comfy and plentiful seating gives your residents a reason to stay awhile. It makes the space more functional, while serving up a homey vibe.

Aim for a mix of thoughtfully planned seating areas that include a mix of sofas, chairs, coffee tables, and side tables. Modular pieces like stools and smaller chairs allow residents to easily rearrange furniture to their liking, making the space more flexible and functional. Choose comfortable items that encourage residents to relax, interact with each other, and take full advantage of common spaces. Classic styles that won’t look dated over time will help you get the most life out of your furniture investment. Seating areas should have a purpose like work, relaxation, or be planned to be flexible enough to accommodate both.

You’ll also want to select these items based on their durability and ease of cleaning. Consider that multiple people will be using these items on a daily basis, which means wear and tear will occur faster than with items in individual units. Make sure furniture is easy to clean to keep it looking like new. Stain-resistant materials minimize the effects of spills, dirt, and other elements, which means less work for your cleaning crew and more enjoyment for your residents.

Lighting

Community spaces serve different purposes for different people. Some need a space where they can work remotely while escaping the confines of their own apartment. Others want a place where they can unwind after a long day at the office. At night, lighting is important for residents passing through the space on their way to their units. And during the day, good lighting can make a space feel happy, bright, and energizing.

Having a mix of different types of lighting in the same space helps you cater to all of these expectations. Ambient lighting serves to create a general atmosphere; it lends to the visual appeal of a room and can help to reduce shadows and glares.

In addition, you may want to include task lighting that’s conducive to concentration or certain purposes. This might be adding lamp fixtures to desks or spotlights over specific areas, for example.

Accent lighting can also support a multi-family community space. Similar to task lighting, accent lighting illuminates specific areas rather than entire rooms. It can also draw attention to specific features that might otherwise be overlooked. For example, you might include accent lighting along the edges of steps or near artwork.

Art and Decor

Art and decor bring community spaces to life. They bring color, texture, and emotion into the room to create an ambiance that will attract prospective tenants. Creating a specific vibe and mood hinges on interior design. You want the space to feel intentional and put together, while still catering to the needs of your residents.

That said, it can be overwhelming to choose the right pieces. Consider the purpose of the space. Is it meant to be a relaxing environment or more functional? This will help determine whether you want calming artwork or practical decor, such as tables that can double as seating.

Also, take into account the size of the room. Large pieces may overwhelm smaller spaces, while too many small items may clutter larger areas.

You also want your art and decor pieces to be on-brand and visually appealing. Again, this comes back to intention. It’s not just about choosing pieces you like, but also selecting items that work well together to create a cohesive design. Art selected or custom made by local or regional artists when appropriate also helps tie the space back to the community.

Technology

As technology expands into more parts of our daily lives, residents expect the spaces they spend time in to provide technological access and support. Offering high-speed internet, power outlets for charging devices, and even smart devices and entertainment systems can help residents feel more at home within community spaces. This is important throughout the property, even extending into your outdoor amenity spaces. They can use these areas to their fullest potential and feel like they’re getting more value as a resident.

Technology also adds an extra layer of convenience and functionality for residents. For example, greater technology access makes common areas perfect for planned events and community gatherings.

Plants and Greenery

Being cooped up for weeks during the Covid pandemic has reinforced just how important it is to stay connected with nature. Community spaces can help to bridge the gap by bringing in greenery and plants to help residents feel surrounded by nature.

Indoor plants improve air quality while enhancing the overall aesthetics of a space. They bring a sense of liveliness and freshness to any room and work with virtually any design style or color palette.

Plus, research has shown that bringing plants indoors can lower stress levels and boost productivity. They create a more calming atmosphere, catering to our need to be part of nature.

Ideally, you can choose plants that thrive without direct sunlight and won’t require a lot of water. One great option is the snake plant, also known as the mother-in-law’s tongue. This plant has thick leaves that can store water for long periods, making it perfect for those who tend to forget about their plant watering duties. It also thrives in low-light conditions and helps purify the air by removing toxins such as formaldehyde and benzene. Another great option is the ZZ plant, which can survive in almost any lighting situation and only needs to be watered once every two weeks. Its shiny leaves add a modern touch to any room.

Adding plants is a simple way to uplift any space without breaking the bank.

Combining These Elements for a Winning Community Space

All of the elements above contribute to the overall “wow-factor” of your community space. It’s impossible to cater to each individual’s wishes and whims; preferences for amenities, ambiance, and aesthetics vary from person to person. A proper designer will help you take the best approach by conceptualizing the look, feel, and vibe you’re going for, as well as the type of resident you want to attract.

Contact SouthPark Interiors to schedule an interior design consultation for your next multi-family development.

Developers spend significant resources on unit finishes and lobby design, then treat outdoor space as an afterthought. Renters notice. Outdoor amenities at apartment communities shape first impressions before a prospect sees the unit, and they influence whether a resident renews when the lease comes up. At SouthPark Interiors, we approach outdoor amenity design the same way we approach interior design: as deliberate decisions about who uses a space, how they use it, and what it communicates about the property. This article covers why outdoor amenities matter, how to program zones that serve distinct tenant needs, and what material choices hold up in multifamily settings.

Why Outdoor Amenities Matter for Apartment Communities

Outdoor Amenities Drive LeasePerformance

A prospect forms an opinion about a property before stepping inside. The exterior, landscaping, and outdoor spaces are the opening argument, and they set the tone for everything that follows. Outdoor amenity spaces that are designed with care communicate that a property is managed well and worth the asking rent.

As we’ve written about in our look at how interior and exterior design affects lease rates, the connection between design quality and lease performance is measurable. Outdoor spaces are part of that equation. They reduce vacancy pressure by drawing prospects who might otherwise skip the tour, and give leasing teams something specific to walk through.

Outdoor Spaces Build Community & Improve Retention

Residents who use shared outdoor spaces develop social ties to the property, not just their unit. A neighbor met at the fire pit, a regular walking route through a landscaped path, Saturday afternoons at the pool: these experiences make leaving harder. Outdoor programming converts a physical amenity into a reason to renew, and renewal conversations go differently when residents feel they belong to a community.

The Health & Wellness Case for Outdoor Design

Access to outdoor space supports physical activity, natural light, stress reduction, and mental well-being. Health-conscious renters are a growing segment, and they evaluate properties through that lens. Biophilic design elements (native plantings, shade structures, water features, natural materials) increase perceived calm in ways that indoor space rarely can match. Properties designed with wellness in mind attract tenants who tend to be selective, long-tenured, and willing to pay for the right environment.

How to Program Outdoor Zones for Multifamily Properties

The most common mistake in multifamily outdoor design is treating outdoor space as one large undifferentiated amenity. A single open lawn with a grill station and a few chairs serves no one particularly well. Effective outdoor amenity design breaks available space into zones, each built to serve a specific tenant behavior.

Social Zones (Gathering & Entertaining)

Social zones are built for group gatherings and outdoor entertaining that residents cannot do inside a unit. Outdoor kitchens with weather-resistant cabinetry, stone or concrete countertops, and commercial-grade grills give residents a reason to host. Fire pits and pergola-covered seating extend usable season. In Southern markets, shade structures are not optional. They are what make a social zone functional through three seasons rather than one. Placement matters: social zones should sit away from quiet-facing units and oriented toward interior courtyards.

Fitness & Active Recreation Zones

Fitness amenities range from outdoor equipment stations to open lawn areas sized for yoga or group recreation. Sport courts have shifted: pickleball is now the standard amenity request in most markets, having replaced volleyball pits as the go-to recreational draw. Pools benefit from deliberate zone planning. A pool deck that serves lap swimmers and social loungers equally needs distinct areas for each. Walking paths increase the perceived footprint of a property, which residents consistently cite as making a community feel worth the rent.

Quiet & Wellness Zones

Not every resident wants to socialize. Seating alcoves with privacy plantings, shaded reading areas, hammock gardens, and rooftop terraces give wellness-oriented tenants a place to decompress. Biophilic elements do the heaviest lifting here: native plantings, water features, and natural shade canopies shift the sensory experience of a space in ways furniture alone cannot. Quiet zones are frequently cut from budgets because they’re smaller and less visible. That is a mistake. A well-placed reading garden becomes one of the most-used amenities on a property.

Pet-friendly Zones

Dedicated dog runs and pet wash stations are expected at most Class A and B developments now, not differentiating features. Properties without them are at a disadvantage in any market where pet ownership is high, which describes most urban and suburban multifamily markets.

Design details matter. Fencing, drainage, and surface material determine whether a pet zone stays clean and usable year-round. Artificial turf with proper infill and drainage performs well; decomposed granite suits drier climates. Shade is essential in Southern markets. For more on this topic, see our full breakdown of designing apartment communities to be pet-friendly.

Children’s Play Zones

Children’s play areas are among the most-overlooked leasing advantages for family-oriented communities. A well-designed play zone, sized appropriately, surfaced for safety, and positioned so parents can supervise from adjacent seating, signals that the property was designed with families in mind. Equipment selection, fall-zone surfacing, and sightlines from adult seating are the design decisions that separate a play area residents use from one they ignore.

Material and furniture selection for outdoor amenity spaces

Multifamily outdoor environments are hard on materials. UV exposure, humidity, and heavy seasonal use eliminate most residential-grade products from consideration. Specification has to start with commercial-grade.

For furniture frames, powder-coated aluminum and commercial resin are the standard: corrosion-resistant, lightweight, and available in finishes that hold up without refinishing. Cushions and shade fabrics should be solution-dyed acrylic. Sunbrella is the most recognized option, and it resists fading and mildew far better than polyester alternatives. Sealed concrete and natural stone work well for hardscape. Composite decking has become the default for elevated deck surfaces in multifamily: low maintenance, splinter-free, and available in finishes that read as wood without the upkeep.

Low-maintenance specification is not a compromise on quality. The right material choices look polished and cost less to manage over time. Color and finish selection should also carry the property’s design identity outdoors. Outdoor furniture is a design decision, not a procurement line item.

Outdoor Amenity Design Trends in Multifamily Development

Outdoor coworking spaces. Remote work is now standard for a significant share of the renter pool. Properties adding covered outdoor seating with wifi, weather protection, and ambient quiet are meeting demand that is only growing. A shaded pergola with outlets and reliable connectivity serves a different need than a pool deck.

Pickleball courts. No single amenity has moved faster through the multifamily market in recent years. Purpose-built courts have replaced volleyball pits across market segments, and demand holds across age groups.

Biophilic design as standard. Living walls, bioswale landscaping, rooftop garden programming, and native planting palettes have moved from premium to expected in Class A developments. Properties that invested in biophilic design three years ago look prescient now.

Pet amenities as non-negotiable. Dog washing stations, off-leash runs with synthetic turf, and pet programming are table stakes in high pet-ownership markets.

Rooftop and elevated outdoor programming. Urban infill projects are turning underused rooftop and podium-level space into high-demand amenity zones. Elevated terraces with city views, outdoor kitchen installations, and landscaped rooftop gardens draw prospects and give long-term residents a reason to stay.

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Outdoor amenity design is a sequence of decisions: who uses a space, how they use it, and what it all communicates about the property. At SouthPark Interiors, we bring the same attention to outdoor programming that we bring to interior design: tenant behavior, material performance, and the long-term relationship between a resident and their community. If you are working on an outdoor amenity program for an upcoming development, we would be glad to talk through what makes sense. Reach us through our commercial interior design services page.

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Frequently asked questions

What outdoor amenities attract apartment tenants? The amenities most likely to influence tenant decisions are social spaces (outdoor kitchens, fire pits, covered seating areas), recreational facilities (pools, fitness areas, pickleball courts), pet-friendly zones, and quiet wellness spaces. The most effective outdoor programs offer a range of zone types rather than one large undifferentiated space.

How do outdoor spaces affect apartment lease rates? Well-designed outdoor amenities contribute to a property’s perceived value, which supports stronger lease rates and lower vacancy. Properties with purposeful outdoor programming also tend to see higher renewal rates. Tenants who use shared outdoor spaces develop social connections to the community that make leaving less appealing.

What outdoor features should an apartment complex have? The right mix depends on the property’s market and tenant profile. At minimum, most Class A and B communities should include a social gathering space, a fitness or recreation zone, a pet-friendly area, and a quiet retreat option. Properties targeting families should add a children’s play area.

 

7 Must-Haves for a Community Clubhouse (Apartment and Student Housing)

The Gist: This guide covers seven features that make an apartment or student community clubhouse work, framed for the developers and property managers who fund them. A well-designed clubhouse is a leasing and retention asset, and the details below show where the investment pays off.

For a developer or property manager, the community clubhouse is one of the highest-leverage spaces in the building. It drives leasing velocity, keeps residents renewing, and gives a property a clear point of difference in a crowded market. Prospective residents tour the clubhouse and picture their life there, so the space does a large share of the selling before a lease is ever signed.

That logic holds across multi-family communities and student housing alike. The residents differ, but the goal is the same: a clubhouse that anchors community life and earns its cost through occupancy and retention. Here are the seven features that get it there.

Why the community clubhouse matters for multifamily and student communities

Amenities are one of the strongest levers a property has for preventing tenant turnover. A clubhouse gives residents a reason to stay: a place to work, gather, and feel part of something, without leaving home. That sense of belonging translates directly into renewals, and renewals protect net operating income far more efficiently than chasing new leases.

The clubhouse also does the heavy lifting on differentiation. When two communities compete on price and floor plans, the one with a clubhouse that feels considered and current wins the tour. For apartment communities that means productivity and social space for a working, remote-friendly resident base. For student communities it means a hub for studying, socializing, and downtime between classes. In both cases the clubhouse is the room that makes the community feel like more than a set of units.

1. Flexible seating and furniture

Good seating is what makes a clubhouse usable. Modular pieces, including chairs, ottomans, and tables, let residents rearrange the space for whatever they need, from a quiet afternoon to a full community event. Tables with built-in charging keep devices powered for a work session or a study group.

Furniture here has to meet three standards at once: comfort, flexibility, and durability. Comfortable pieces get used, flexible pieces serve more than one purpose, and durable pieces survive heavy daily traffic while still looking new. That balance is exactly what specifying commercial-grade furniture is built to solve, and it is where thoughtful selection separates a clubhouse that ages well from one that looks tired in a year.

2. Gaming and entertainment areas

A dedicated entertainment zone gives residents a reason to leave their units and use the shared space. Video game stations, pool and foosball tables, air hockey, darts, board games, oversized versions of classics like Jenga or chess, and a music system all pull people into the room and keep them there.

The payoff is social. Entertainment options create the casual, repeated encounters that turn neighbors into a community, which is the same dynamic that keeps residents renewing.

3. Technology and connectivity

Residents run their lives on connectivity, whether that is remote work in an apartment community or coursework in student housing. A clubhouse should deliver high-speed internet and printing as table stakes. Smart devices and entertainment systems extend the value, giving residents access to technology they might not buy for themselves.

4. Study and collaboration spaces

Set aside room for focused work and group collaboration. A mix of single-person desks or phone-booth style nooks and larger meeting rooms covers both solo concentration and team projects. Whiteboards, video conferencing, and screen-sharing turn those rooms into genuinely productive spaces rather than empty gestures. This matters as much for remote-working apartment residents as it does for students.

5. Snack and beverage stations

Food and drink within reach make the clubhouse a place residents return to. Coffee stations, vending, mini-fridges, and in some communities a staffed snack bar put refreshment steps away and save residents a trip out. In practice these stations become natural gathering points, which reinforces the social pull of the whole space.

6. Outdoor and amenity spaces

A clubhouse should not stop at four walls. Barbecue grills, patios with fire pits, and green space for games extend the usable footprint and give residents fresh air and daylight, both of which support well-being. Outdoor amenities also expand the community’s event capacity and its appeal on a tour. The most successful communities treat external amenities as an extension of the clubhouse, not a separate afterthought.

7. Safety and security features

Residents and, in student housing, their families need to trust the space. A members-only feel, backed by access codes, keeps amenities limited to residents. Smoke and carbon monoxide detectors, security cameras, and controlled entry are non-negotiable. Security done well is invisible: it lets residents relax into the space rather than think about who else has access.

How SPI designs community clubhouses

SouthPark Interiors handles the clubhouse from concept through installation. As commercial interior designers and interior architects, we take a project from branding and design boards through 3D renderings, then manage FF&E procurement and full installation so the finished space matches the vision on the boards. We work exclusively in commercial multifamily and student housing, so the specifications, durability standards, and layouts are built for high-traffic community life rather than borrowed from residential work.

For developers and property managers, that end-to-end model removes the coordination burden of stitching together separate design, sourcing, and install vendors. The result is a clubhouse that reads as intentional, performs under daily use, and pulls its weight on leasing and retention.

The clubhouse is not an afterthought. It is a leasing and retention asset, and it rewards the attention. To plan a clubhouse for your community, connect with the SPI design team.

Professional staging: a great first impression

How professional model staging gets more signed leases

A completed multi-family complex that’s ready for residents isn’t quite ready for the public eye until you’ve done some professional staging. This all-important step is too often overlooked, as owners and property managers want to start showing units and signing leases as soon as possible. But the right staging ideas can go a long way in making model units feel more like home — their home.
In this blog post, we’ll discuss:

• What model staging is (physical and virtual)
• Why model staging is a worthwhile endeavor
• How to do model staging right

What is Model Staging?

We define model staging as the strategic use of furniture, art, decor, and other homey elements to “stage” a model for showing to prospective tenants. Property managers fill the space to create a vision for the future. It’s an excellent way to highlight the space and all of its features, giving prospective tenants an idea of the space’s potential and how it might feel to live there.

Model staging can be done in physical or digital forms. In physical model staging, you’re bringing in real furniture, photos, dishes, vases, and other elements to create a home-like atmosphere. Tenants that visit the property in person will see these elements for themselves.

Pro Tip: We encourage all properties to style their models in the same aesthetic as their clubhouse and common areas. This will give a cohesive feel to the entire property.

With digital staging, designers generate a 3D mockup of the model and include digital elements to make it look staged. The purpose is to create images for your apartment listings that prospects can explore online on their own and get a feel for the community and the quality of your housing complex.

Why Bother Staging a Multi-Family Model?

Why do we stage a model? It’s not like anyone will actually use all that furniture, but spending time and money on staging can produce a pretty ROI.

For starters, staging is all about inspiring others to see what could be. Potential renters can envision themselves there. They can get ideas for where they might place their own furniture. The colors you choose can bring out the space’s natural beauty and shine a light on unique features. The use of colors can evoke specific feelings or emotions while they’re touring the space, which could help to encourage them to make a deposit on the spot.

In fact, nicely staged pictures are essential for promoting your rental properties online. Research from CoStar found that rental listings with a photo of a living room as the primary photo receive 110% more clicks than those that use exterior photos as the main image. In real estate, staged homes spend 90% less time on the market compared to non-staged or empty homes. Photos are an essential part of marketing your property online and encouraging visitors to come to take a look in person.

Staging a model also gives you an opportunity to increase the unit’s perceived value. Use this opportunity to create an upscale vibe that commands the rent price you’ve selected. A space that looks immaculate or well put together gives off an air of sophistication, style, and class. It shows you value the property enough to create the best first impression possible, which will make your potential residents care about it, too.

You can use staging to point out features that might not be immediately obvious. By strategically placing furniture and accessories, you can draw attention to architectural details or outdoor spaces that might otherwise go unnoticed.

Ultimately, it’s all about creating the right first impression. You’re not just staging a model unit; you’re presenting a viable future for your prospective tenants. It creates a picture that helps them envision daily life — and want to live their life in your multi-family complex.

How to Maximize Your Space with the Right Design

Model staging allows you to get the most out of your space and show future tenants how they can do the same. You’re providing the layout inspiration not just for tenants but also for other commercial property managers and owners.

There are a few ways to go about this.

First, it’s helpful to develop a resident persona. This persona will represent a specific type of resident, which will enable you to design a space that caters to that persona’s interests. For instance, your persona might be a female Millennial who has a dog, loves to cook, and enjoys pool time when she isn’t working. Having a specific persona in mind will help you to choose design elements to fill out your space and play to their interests.

Next, you’ll also want to think about spatial planning in your space. Whether you’re doing physical or digital staging, you’ll want to ensure plenty of “white space” within the room so that it doesn’t feel crowded or confined. This is also a must when creating accessible spaces. This means choosing furniture that fits well within the space, not just furniture that has an attractive color or style.

Also, don’t neglect the power of fine details. Small elements can do a lot of the selling for you. It’s those little things that make a house feel like a home — table settings, bowls of lemons, dish towels hanging on the oven door handle, books and magazines on the coffee table, and pops of greenery that bring nature indoors, for example. You don’t just want the space to look aesthetically delightful; you want it to feel like a home, not a staged model (even though that’s precisely what it is).

The Best Path to Model Staging: Work with a Professional Designer

Commercial interior design firms are ideal partners for model staging. With knowledge of color psychology, an eye for innovation and creativity, and access to staging technology and networks of suppliers, owners and property managers can get turnkey staging that makes their properties stand out. The more thought and intention behind a staged model, the more likely a property is to close deals (and quickly).

At SouthPark Interiors, our designers bring experience and intention to model staging with the goal of maximizing your space’s most unique features and selling points. Contact us today to learn more.

Multi-family Project Spotlight

The Inside Scoop from Our Latest Multifamily Interior Design Project

SouthPark Interiors is finishing another multi-family property, this time here in Charlotte, NC. Elan University City is set to open its doors in March 2023, and we can’t wait to share all the details.Why it matters: With the new year fast approaching and major redevelopment happening in the University City area, now is a great time for property developers in Charlotte to refresh their understanding of the multifamily landscape.

Today’s tenants demand something different from their living experience, and Elan University City Apartments plans to deliver what’s missing.

• Tenants can expect state-of-the-art amenities, including a resort-style pool, outdoor kitchen, clubhouse, and there are even rumors of an on-site pickleball court.
• Residents will have their choice between two finish packages, each complete with upgraded cabinetry, countertops, appliances, lighting, and fixtures.
• Drawing an overall design aesthetic inspiration from Ralph Waldo Emerson, Elan University City aims to include multiple outdoor spaces throughout, featuring earthy tones, relaxing greenery, and woodgrains in finishes, furniture, and art.

Take a tour: While Elan University City Apartments won’t open until March 2023, you can get a true feel for the all-new community by reading our Q&A below with lead designer, Emily Hiott.

Planning to build a multifamily community in Charlotte in the new year? Request a consultation with SouthPark Interiors to help ensure your community is satisfying the needs of your tenants before your doors even open!

Designer Q&A with Emily Hiott

We spoke with lead interior designer, Emily Hiott, to get a better understanding of what residents can expect at Elan University City Apartments. Here’s what she shared:

What makes this space unique from other multifamily interior design projects?

Elan University City could not come online at a better time. The University City area is undergoing a massive redevelopment, and people are taking notice. It is an excellent location, and Elan will provide an excellent solution for tenants seeking a perfect marriage between convenience and luxury.

There are multiple programmed outdoor spaces throughout the property for residents to enjoy, including:

• Hammock parks
• Firepit areas
• Outdoor kitchen
• Private hangout spots
• Open green spaces
• Resort style pool complete with private cabanas
• Lap pool

We even proposed a pickleball court for the build!

Inside, the clubhouse leaves nothing to be desired with rich woodgrains and earthy tones highlighted by bold angles and textures within the design. The clubhouse environment will be a perfect backdrop for those work-from-home days, early mornings at the gym, and everything in between.

How does Elan University City compare to other properties in the area?

There aren’t many Class A multifamily properties that have delivered in recent years, so Elan is positioned to come in strong. Residents will have two finish packages they can choose from; however upgraded cabinets, countertops, appliances, lighting, and fixtures will come standard throughout. This property will also provide its residents with multiple opportunities to enjoy the outdoors, which is something the University City area is currently lacking.

What was your approach to the design process for this project?

We took a page from Ralph Waldo Emerson in our approach to this design. He felt that being in nature repaired your soul and provided man with a sense of peace.

We wanted the space to be a home they could come to for both rest and play.
Taking this idea, our team worked together with Mees, Partners, and LandDesign to create a property that would provide its residents with their very own sanctuary.

The interior of the clubhouse seeks to inspire and comfort. Here, you’ll find earthy tones, relaxing greens, and woodgrains throughout the finishes, furniture, and art. In many ways, this design is an homage to Mother Nature.

Multi-family Development

How Urban Exoduses are Impacting the Multi-Family Market

Type in “Americans leaving the city” in any search engine, and you’re likely to pull up hundreds of thousands of results. SouthPark Interiors gets to the bottom of city exoduses and their impact on the multi-family market in the article below. Specifically, we’ll cover:

1. Is the urban exodus really happening?
   • Areas that are seeing the greatest growth due to the city exodus
2. What the urban exodus means for multi-family development, including:
• Why multi-family developers are moving to suburbia
• Why apartment developers are also moving to strategic city outskirts
• How including green amenities can positively impact multi-family housing

Since the onset of the coronavirus pandemic, Americans all over the nation have fled urban areas en masse. With many multi-family housing properties located in urban regions, multi-family developers are wondering about how these city exoduses will impact the future of their business — and their bottom line.

While it’s no secret that mass migration away from cities has taken the multi-family market by surprise, the industry as a whole has experienced a boom in recent years. This is due in large part to developers’ ability to adapt to their tenants’ changing needs by understanding where and how they wish to live.

Is the Urban Exodus Really Happening?

The short answer — yes, it is.

Despite slowing down to some degree in recent months, urban exoduses dramatically increased during the earliest months of the COVID-19 pandemic. Many believed that more densely populated areas were at higher risk for exposure and infection; however, this turned out not to be the case, according to the Johns Hopkins Bloomberg School of Public Health. In fact, a 2020 study by one of the school’s researchers found that cities experienced fewer COVID deaths, potentially due to their higher level of development and higher-quality health care systems.

But cities lost their allure for different reasons during the pandemic as well: Business shutdowns made easy access to restaurants, entertainment, and cultural institutions a thing of the past as urban areas saw the strictest stay-at-home orders. Being forced to stay at home in smaller quarters only accelerated residents’ desire to seek more space to call their own. With the community amenities stripped away, many city dwellers could no longer justify the higher cost of rent in areas like New York, Chicago, or Philadelphia, fleeing these areas for more affordable regions of the country.

In fact, affordability is why many Americans would have made the decision to leave large cities within the next five years regardless of the global health crisis. According to research by William H. Frey, senior fellow of the Brookings Institution, large cities saw slower growth and population losses throughout the last half of the previous decade. Increasingly, families have become attracted to the affordability that small-scale cityscapes and suburbia provide.

Where Is Everyone Going?

As urban residents seek out ways to hang on to their lifestyle preferences while maintaining financial stability, many are choosing to relocate to both suburban areas and regions experiencing tremendous economic opportunity. Charlotte is one such area that checks all of these boxes. It’s no secret that Charlotte saw many New York City transplants due to both increased affordability and opportunity within the last year. That number is only expected to grow as more people move to the area from large metro locations across the United States.

What Does the Urban Exodus Mean for Multi-Family Development?

As multi-family investors look to the future, it’s important for them to tailor their strategy to what potential tenants truly want from their living environments. Despite pandemic concerns and migration to non-urban areas, the multi-family market has seen tremendous growth, which is only expected to continue into 2022. Developers can capitalize on the multi-family movement away from cities by taking the following into consideration:

1. Moving to Suburbia

As more people choose to live in suburban areas, it’s a wise decision for multi-family developers to seek out properties in these regions in order to remain relevant and profitable. Suburban properties aren’t just more affordable for the people living in them: Developers also benefit from the lower real estate value and high rate of return on their investment.

2. Strategic City Outskirts

With businesses slowly returning to pre-pandemic normalcy, some tenants that temporarily fled the city scene are seeking a low-key return to urban living. Increasingly, residents are seeking housing in specific “not-city” areas, such as Atlanta’s Buckhead or Charlotte’s dynamic South End neighborhood. Properties located in these areas still offer all the proximity of city amenities while providing more affordable housing solutions.

3. Including Green Amenities

One of the biggest attractions to suburban living is the increased amount of outdoor space. Outdoor activities like gardening, biking, and walking have surged in popularity with many tenants seeking multi-family communities that are able to offer such amenities on-site. Finding opportunities to include green amenities — such as community gardens, bike trails, and walking trails — is a great way to attract residents for the long-term.

As Americans seek a change of scenery to their living environments, that doesn’t mean multi-family developers have to suffer. Instead, they’ll simply need to strategize to meet residents where they want to live, and provide the types of amenities and affordable housing they’ve come to expect.