For years, millennials have been coined the “experience-driven generation,” known for investing their loyalty and dollars in experiences, not products. Now, consumers across many age demographics — including Generation X, Generation Z and baby boomers — are starting to follow suit.
According to a study by McKinsey & Company, U.S. consumers spent four times more on experience-related purchases than physical goods in the last few years, so it’s no surprise that this desire for experience will influence expectations for living environments, as well. The following is a look at how the growing demand for an experiential living will transform multifamily and even senior housing properties in years to come.
All-Inclusive Living
With a goal of providing renters with unique living experiences and setting themselves apart, multifamily developers are turning the operations dial up another notch, offering tenants the next iteration of all-inclusive, hotel-like living. This is going beyond dry cleaning and full-service concierge to unique offerings that inspire resident interaction and infuse the local culture. The multifamily communities of tomorrow are offering residents poolside drink service and incorporating pop-up shops — everything from local retail to food, wine, art and handcrafted goods.
Wellness Integration 2.0
From float therapy to on-demand fitness to goat yoga, wellness services today do not fall short of providing consumers with options to sustain their mental and physical well-being. With global wellness valued at $4.2 trillion and wellness real estate named one of the top five fastest-growing sectors according to the Global Wellness Institute, residents will soon come to expect the same offerings in multifamily environments.
To attract and retain the next class of health-conscious consumers, multifamily owners and operators will need to integrate innovative wellness solutions that fuel the mind, body and soul. Think Himalayan salt rooms for detoxification, sensory deprivation tanks to induce relaxation and infrared saunas to increase oxygen flow and circulation.
Coworking on Steroids
Consider this: in 2020, 50% of the U.S. workforce will be remote, prompting multifamily developers nationwide to evolve their design strategies to support the growing gig economy. In comes coworking spaces. While coworking is not necessarily the new kid on the block, these spaces will soon shift from a luxury amenity to a resident “must have.” To accommodate, developers will replace underutilized space, such as business centers and lobbies, with coworking zones and incorporate them as part of the initial design for new projects. Better than before, coworking spaces will be equipped with high-end technology, biophilic design and advanced scheduling tools.
Not So Senior Housing
The senior demographic is growing rapidly — at nearly three times the rate of our total population — and this generation is more active and social into their later years of life. Essentially, 85 years old is the new 65 years old. As a result, seniors looking to downsize will search for living experiences that support health, wellness and offer a strong sense of community. Looking ahead, this dynamic will spark a demand for senior living communities chock-full of hotel-like amenities, ultimately transforming senior housing design from traditional, outpatient models to high-end luxury apartments for active adults.
Felicia Hyde
H. Hendy Associates
4770 Campus Drive, Suite 100
Newport Beach, CA 92660
fhyde@hhendy.com
949-851-3080