Luxury Renter Preferences Shift to 'Right-Sizing'
What happened
Affluent renters are increasingly focused on “right-sizing” rather than simply downsizing, seeking units that fit specific lifestyle needs. A recent multifamily market outlook highlights a growing demand for features like dedicated home office space, private outdoor areas, and high-end in-unit technology. This shift places a premium on floorplans that offer flexibility and privacy.
Why it matters
- The demand for flexible spaces is influencing new developments, with Gold Coast/Old Town seeing the addition of nearly 700 new units, which contributed to a 77% increase in leasing volume for the submarket in the second quarter of 2024 compared to the same period in 2023. - In response to remote work, luxury buildings are incorporating dedicated co-working spaces, private work pods, and even built-in workstations or "Zoom rooms" within units to provide quiet and professional environments for residents. - Competitor properties are heavily focused on lifestyle amenities. For instance, Millie on Michigan offers a 46th-floor outdoor pool deck, co-working spaces, and a pet spa, while The Deco provides a rooftop patio with lake views and complimentary fitness classes. - Wellness is a key differentiator, with new developments offering spa-inspired amenities such as saunas, steam rooms, yoga studios, and even cold plunge pools to cater to health-conscious renters. - Properties like the Waldorf Astoria Residences (formerly the Elysian) and Park Tower leverage their hotel affiliation to offer residents access to 5-star amenities, including 24-hour room service, concierge services, and world-class spas and restaurants like NoMi. - The average rent for an apartment in the Gold Coast saw a 4% year-over-year increase to $2,519, with two-bedroom units averaging $4,158. This is part of a broader downtown trend where top-tier buildings reached a record-high of $3.61 per square foot in late 2024. - High-tech in-unit features are becoming standard, including smart home technology for controlling lighting and temperature, keyless entry, and high-speed internet infrastructure to support remote work needs. - Outdoor and community-centric features are highly valued, with buildings offering amenities like rooftop gardens, grilling stations, fire pits, and resident lounges designed to foster a sense of community.
Key numbers
- For instance, Millie on Michigan offers a 46th-floor outdoor pool deck, co-working spaces, and a pet spa, while The Deco provides a rooftop patio with lake views and complimentary fitness classes.
- The average rent for an apartment in the Gold Coast saw a 4% year-over-year increase to $2,519, with two-bedroom units averaging $4,158.
- This is part of a broader downtown trend where top-tier buildings reached a record-high of $3.61 per square foot in late 2024.
Quick answers
What happened in Luxury Renter Preferences Shift to 'Right-Sizing'?
Affluent renters are increasingly focused on “right-sizing” rather than simply downsizing, seeking units that fit specific lifestyle needs. A recent multifamily market outlook highlights a growing demand for features like dedicated home office space, private outdoor areas, and high-end in-unit technology. This shift places a premium on floorplans that offer flexibility and privacy.
Why does Luxury Renter Preferences Shift to 'Right-Sizing' matter?
The demand for flexible spaces is influencing new developments, with Gold Coast/Old Town seeing the addition of nearly 700 new units, which contributed to a 77% increase in leasing volume for the submarket in the second quarter of 2024 compared to the same period in 2023. In response to remote work, luxury buildings are incorporating dedicated co-working spaces, private work pods, and even built-in workstations or "Zoom rooms" within units to provide quiet and professional environments for residents. Competitor properties are heavily focused on lifestyle amenities. For instance, Millie on Michigan offers a 46th-floor outdoor pool deck, co-working spaces, and a pet spa, while The Deco provides a rooftop patio with lake views and complimentary fitness classes. Wellness is a key differentiator, with new developments offering spa-inspired amenities such as saunas, steam rooms, yoga studios, and even cold plunge pools to cater to health-conscious renters. Properties like the Waldorf Astoria Residences (formerly the Elysian) and Park Tower leverage their hotel affiliation to offer residents access to 5-star amenities, including 24-hour room service, concierge services, and world-class spas and restaurants like NoMi. The average rent for an apartment in the Gold Coast saw a 4% year-over-year increase to $2,519, with two-bedroom units averaging $4,158. This is part of a broader downtown trend where top-tier buildings reached a record-high of $3.61 per square foot in late 2024. High-tech in-unit features are becoming standard, including smart home technology for controlling lighting and temperature, keyless entry, and high-speed internet infrastructure to support remote work needs. Outdoor and community-centric features are highly valued, with buildings offering amenities like rooftop gardens, grilling stations, fire pits, and resident lounges designed to foster a sense of community.
