The Sioux Falls housing market has seen unprecedented growth over the last three years, bringing some of the most innovative and elegant rental properties we’ve ever seen. And it’s not slowing down yet.
Nationwide, the same trend is present: people are looking for high-end experiences instead of just a place to crash at night. The rental market has responded with more amenities, better units, and a change in the overall function of these multifamily building designs. In 2023, these trends will continue to develop, along with other trends in multifamily living that will change the face of rental properties for decades to come.
2023 will see some continuing trends from 2022, including a greater focus on attracting long-term tenants. Developers are building more enticing features and amenities into their multifamily building design plans and designing to maximize housing availability in a high-demand market. The purpose of these trends is multifold:
- Attract better tenants and keep them longer
- Offer more transparency and access to energy use data for tenants
- Streamline maintenance systems and methods with automation
- Add more residential space to meet current demands
Renters are looking for a more comprehensive experience when considering a residence. Entertainment, wellness, and work-from-home options have become key to a multifamily building design in 2023. Whether green space, pet amenities, or smart tech features, renters look for more than just a place to sleep and eat. And the end goal for building owners and managers is to attract tenants that care about their rental homes and want to stay there longer.
Entertainment and amenities are important. But tenants are also looking for ways they can be more environmentally responsible. Real-time data for utilities and energy consumption will be a desire for building management and individual renters who want to be responsible for their carbon footprints. In the past, rent-it-and-forget-it was the preferred method. Today, tenants want to know the details of their rental impact. Project designers must keep this in mind when engineering buildings and complexes.
For building managers and owners, technology will play a key role in improving maintenance efficiency. Smart monitoring and dynamic controls will make it easier to address problems like plumbing leaks, even to the extent that leaks can be stopped when special smart systems integrations sense them. With faster reaction times and better damage prevention through these technological advancements, long-term costs can be decreased.
Demand for residential space is still high, and some experts see trends swinging toward creative reuse and modernization projects. Developers will continue finding ways to transition existing commercial buildings into residential or multi-use spaces. And until interest rates come back down, that increased demand won’t disappear.
From coast to coast, renters are demanding high-quality residential spaces. And it’s not just the apartments that need to be above average. Every aspect of new residential complexes adds a touch of luxury to the tenant experience.
The past five years have seen a rise in community-focused rental complexes. Instead of standalone buildings with isolated apartments, new developments feature courtyards that build a neighborhood feel into the experience.
According to Mary Cook, president of Mary Cook Associates, developments in 2023 will focus on larger and more private units balanced by adaptable common areas with co-working spaces. In many complexes, shopping and dining establishments are part of the complex.
In fact, with the work-at-home culture coming out of 2020, many multifamily building designs make it possible to live, work, and play without leaving the properties. And some complexes are building a local-first community feel through additional discounts and collaborations with businesses that are within walking distance of their apartments.
The idea of an all-inclusive property is becoming increasingly appealing in 2023. Multifamily building designs will continue to include pools and gathering spaces, but the prevalence of co-working and work-from-home lifestyles makes it possible for complexes to offer bars and restaurants for mingling, as well as more spaces for pet-friendly needs.
In one development in Phoenix, AZ, for example, the 330-unit apartment complex will offer 50,000 square feet of shell space for restaurants and retail stores, along with many other amenities. This particular project may be an extreme example, but we are already seeing similar projects on smaller scales in the Sioux Falls area.
In the past, a pool and fitness center was the height of fine living. But multifamily building design in 2023 looks much more entertaining and accommodating. From outdoor amenities like sand volleyball and basketball courts to indoor entertainment like golf simulators, multifamily complexes provide year-round options for their residents.
Today’s newest multifamily building designs no longer use laminate countertops and carpeting to reduce expenses. Instead, renters look for solid surfaces and hard floors in many living spaces. Stainless appliances are now the standard, as is in-unit laundry. Apartments are expected to be high-end and luxurious.
In and around Sioux Falls, we’re seeing many of these same trends in new multifamily building projects. And the market is hot here, with 2022 permits amounting to $471 million for apartments alone. Part of that demand comes from the migration of new people from the east and west coast that are looking for better tax policies or more sensible lifestyle laws and ordinances over the last few years.
One of our own projects, the Cascade at Falls Park, is a perfect example of the newest trends in multifamily building design:
- Luxury finishes for each unit
- Top-quality fitness center
- Rooftop common spaces with fire pits and wet bars
- An outdoor pool and hot tub with expansive green space
- On-site dog park
- High-end shopping and unique dining experiences adjacent to the complex
- Within walking distance of some of the most popular and elegant shopping, dining, and entertainment Sioux Falls has to offer
And new developments are going in much the same direction. From the Cherapa buildings to Powderhaus and Stadium Crossing, Sioux Falls renters can expect high-end experiences throughout the city. Both outdoor and indoor amenities are more involved than ever before, and the call for better tech integrations makes system planning more complex.
What does this call for higher quality experiences and more neighborhood-like living mean for multifamily building design and planning in 2023? It means more requirements for mechanical, HVAC, electrical, and technology professionals.
From key fob entry to smart thermostats, building designers and mechanical systems engineers have a new challenge ahead of them. But the results will mean incredible revenue growth for our community. High-end tech integrations that satisfy the expectations of big-city migrations make our city an even more exciting place to live.
Of course, as multifamily building design becomes increasingly complex, the systems that support new apartment and rental properties will have to advance. For mechanical engineering firms, this advancement will call for more experience and expertise to make everything work together. The biggest trends in multifamily developments in 2023 will need the best mechanical engineers to bring these big dreams to life.
As more integrated communities develop within and around these multifamily complexes, the need for integrated systems management will also increase. Building access, common spaces, and controlled guest access require automation systems that go beyond a few door locks or security cameras. Mechanical engineering firms will need to rise to the challenge by offering top-of-the-line tech solutions that work smoothly for apartment complexes of 150-plus units.
Indoor and outdoor pools. Golf simulators. Bars, restaurants, and arcades. Planning out and commissioning electrical, plumbing, fire safety, and HVAC systems for all the different applications will become an increasingly complex process. The best engineering firms have already been building these types of properties, and they’ll continue to lead the market against less experienced engineers.
Smart technologies are not just for building managers. Residents expect the ability to control their apartments via smartphones and smart devices. Mechanical engineers will see increasing requirements for smart integrations within units and throughout common spaces. Smart lighting, outlets, thermostats, and appliances will become standard, as will the ability to monitor and analyze individual units’ energy consumption.
With tighter envelopes and heightened attention to air quality, ventilation systems are no longer the simple exhaust vent for bathrooms and kitchens. We expect a rise in whole-unit ventilation systems, including intake and exhaust, to balance air quality and improve health.
Innovative Engineering Solutions has already designed, installed, and commissioned several large-scale multifamily projects from start to finish. Since 2005, we’ve been designing advanced mechanical systems for apartments, retail spaces, commercial buildings, and churches, just to name a few.
But our sweet spot is multifamily building design. Our team of experts knows the ins and outs of these intricate complexes, and we can help you navigate the process of bringing to life the property you envision as the pinnacle of fine living and entertainment in your community. Contact us today to find out how we take your vision from paper to reality with the most advanced and efficient design solutions available today.