IAA 2020 Multifamily Industry Conference: Oct. 15, 2020
Although RealAmerica attends the IAA Multifamily Industry Conference every year, we were even more eager to attend virtually in 2020 to learn how other industry leaders were responding to the pandemic.
Currently, multifamily occupancy rates in Indiana continue to beat the national average, seeing less than one percent occupancy drop in 2020. As most units built in the region are high-end, the two-year rent increase average is 4.7% for Indiana, versus the national 20-year average of 2.5% increase per year.
Although insurance rates are still considered low, we noted that many properties are seeing coverage reductions, and that while newer apartments in growing areas have seen a 10% rate increase, some older buildings have had their rates increase by 50% or more — even up to 100% in some cases!
As the pandemic lingers, communities are shifting home design as well as amenities. Smaller spaces and sound barriers in interior spaces, and an increase in on-site parks, pet-friendly areas, and outdoor public spaces are all on the rise.
We expect that occupancy rates will continue to stay high, and that luxury unit construction will drop for the next several years, although overall construction demand remains high. We may see a push for locations in suburban areas if urban areas fight higher infection rates, and timelines may shift as suppliers struggle to catch up to demand.
At RealAmerica, we believe that continual learning helps us deliver better solutions to the communities we serve, and we look forward to applying what we learned at IAA 2020 to the projects we currently have underway as well as new ideas and opportunities in the future.