PREFERENCES, PRIORITIES + PERSPECTIVES Information contained herein is presented for use by Greystar clients and professionals and all rights to the material are reserved and cannot be shared or reproduced without prior written permission of Greystar.
TABLE OF CONTENTS
GOALS QUESTIONS PRIORITIES PREMIUMS TRENDS
4 5 6
14 22
24 29 34 36 43 44
EV Charging Unit Access Packages Fitness, Sustainability + Grilling Rent Premiums + Inflation Hybrid Work
ADDITIONAL RESOURCES CONTACTS
47 48
On Cover: ORIGIN Superior, CO
6TH + MAIN Salt Lake City, UT
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THE TREASURY Flemington, NJ
Goals
Questions Within 60 days of moving into a Greystar-managed community in the United States, residents receive an invitation to participate in the online Design Survey.
If there are two identical apartments, but only one has the following feature/amenity, how much more rent per month would you expect a renter in your area to pay for the apartment with that feature/amenity?
resident demographics. Users can compare resident perspectives regarding dozens of apartment features and community amenities, and identify trends in preferences over several years, including periods before and after the arrival of COVID-19 in the United States. At Greystar, our goal is to give clients useful and up-to- date information to help them make decisions. The 2023 Survey Report and Dashboard are essential resources that not only provide insights into resident preferences but also show the wide range of data at our disposal. We encourage our clients to use these resources to make informed choices. If you have any questions after reading these publications, please reach out to Greystar’s Research and Analytics team. You can find our contact information on the back cover of this report.
Since March 2017, Greystar’s Design Survey has helped our clients to better understand what their residents want in a rental home. We made some improvements to the survey in 2019 and deployed the updated version consistently for the next four years. In this 5th edition of the Design Survey Report, we look back over 166,541 survey responses received from 2019 to 2022 and explore the key trends in resident preferences during these eventful years. To empower our clients to explore and analyze the survey data, we created an interactive analytical tool to accompany this report, the 2023 Survey Dashboard. With the dashboard, users can focus their inquiries on specific markets and market segments using filters based on geography, property characteristics, and
The survey poses two key questions. First, survey recipients are asked: How high of a priority are the following apartment features/amenities when making your lease decision? They are presented, in turn, lists of 18 apartment features and 29 community amenities and prompted to select one of five responses for each attribute: very high priority , high priority , neutral , low priority , or very low priority .
The survey presents respondents with the features and amenities they previously described as a very high priority and prompts them to assign each a value between $5 and $200 in $5 increments. Responses to the first question allow us to determine how highly residents prioritize specific features and amenities when deciding to lease an apartment. Responses to the second question indicate the rent premiums our residents expect renters in their area to pay for a feature or amenity.
Respondents are then asked the following:
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Priorities
THE ARBORETUM Farmingville, NY
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Additional soundproofing topped the list of resident priorities in 2022, as it has every year since the Greystar Design Survey was launched in 2017. Nearly 90 percent of respondents deemed it either a very high priority or a high priority, with over half specifying it as a topmost concern. Secured community access was the second-highest priority in 2022 out of all the features and amenities included in the survey, and the highest priority among community amenities. Seventy-eight percent of
respondents. Approximately 57 percent considered smart thermostats and non-key secure access as high or very high priorities, while pre-installed Wi-Fi followed closely behind with 56 percent designating it as a top concern. Sustainability-related amenities also emerged as high priorities for most survey participants. A recycling program was a high or very high priority for 57 percent of respondents, while sustainability/green certifications were highly prioritized by 52 percent of the participants.
second highest priority among community amenities. Thirty-nine percent of respondents said a pool is a very high priority. A three-way tie rounded out the top five priorities in 2022, as 69 percent of participants deemed hardwood- like floors , package lockers , and stainless-steel appliances to be high or very high priorities. Smart home features, including smart thermostats , non-key secure access , and pre-installed Wi-Fi , were high or very high priority attributes for well over half the
participants ranked it as either a high or very high priority, with 45 percent regarding it as a very high priority. A premium washer and dryer claimed the third spot in priority rankings. Seventy-seven percent of respondents said that premium laundry appliances are a high or very high priority, with 39 percent identifying them as a very high priority. Nearly three quarters of respondents said that a pool is a high or very high priority, making it the fourth-highest priority among the attributes in the survey, and the
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FIGURE 1: RATE OF HIGH AND VERY HIGH PRIORITY RESPONSES REGARDING APARTMENT FEATURES IN 2022
Very high priority
High priority
Total
Additional Soundproofing
88%
35%
54%
Premium Washer and Dryer
77%
38%
39%
Hardwood-like Floors
69%
39%
30%
Stainless-steel Appliances
69%
43%
26%
Living Room Balcony
67%
37%
30%
Premium Countertops
63%
42%
21%
Smart Thermostats
57%
35%
22%
Non-key Secure Access
57%
33%
24%
Pre-installed Wi-Fi
56%
30%
26%
Apartment Features Average
52%
30%
23%
Alarm System
52%
31%
21%
Device-charging Stations
51%
30%
21%
Floor-to-ceiling Windows
49%
30%
19%
Wi-Fi-enabled Video Doorbell
42%
25%
17%
Gas Stove
40%
24%
16%
Sound System with Bluetooth
28%
17%
11%
Bedroom Balcony
24%
16%
9%
Concrete Floors
24%
14%
9%
Mud Room
24%
16%
7%
LANDSBY Mountain View, CA
Source: Greystar Design Survey, 2022.
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FIGURE 2: RATE OF HIGH AND VERY HIGH PRIORITY RESPONSES REGARDING COMMUNITY AMENITIES IN 2022
Very high priority
High priority
Total
Secured Community Access Pool
78%
33%
45%
73%
34%
39%
Package Lockers Reserved Parking Recycling Program Rooftop Amenity Space Sustainability / Green Certifications Additional Storage Outside Unit Community Wi-Fi Clubhouse Community Dog Park Outdoor Recreational Facilities Barbecue Grills Valet Trash Service Community Amenities Average Fitness Classes Pet-washing Station Outdoor Kitchen Business Center Wi-Fi Café Fitness Trainer Playground Concierge Services Community Vegetable Garden Secured Bike Storage Movie Theater Conference Room Car-charging Station Laundry Lockers Valet Parking
69%
39%
29%
65%
33%
32%
57%
33%
24% 25%
55%
30%
52%
32%
21%
51%
32%
20%
49%
31%
17%
46%
31% 24%
15%
43%
19%
42%
28%
14% 13%
41%
28%
40% 39%
23% 23%
16% 16%
36%
23%
13%
32%
20%
11%
29%
20%
9% 9% 9% 9% 10% 9%
28%
20%
26% 26%
18% 17% 15%
25%
25% 24% 24% 24% 23%
15% 16%
8% 8%
16% 17% 16%
7% 7% 7%
18%
11%
15%
10%
5%
9%
5%
4%
TRUNORTH AT BULVERDE San Antonio, TX
Source: Greystar Design Survey, 2022.
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Premiums
525 OLIVE San Diego, CA
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Survey participants who consider an apartment feature or community amenity to be a very high priority are asked to estimate the additional amount of monthly rent, also known as the rent premium, that renters in their area would be willing to pay for it. In 2022, there were five apartment features and four community amenities that were highly popular and perceived as valuable. They received above- average rates of very high priority responses and were associated with larger-than-average estimated rent premiums. These attributes are widely regarded as top priorities and probably contribute to higher occupancy rates in communities that offer them. Survey respondents stated that residents are willing to pay significant extra rent for these features and amenities. The five apartment features are additional soundproofing , hardwood-like floors , living room balconies , premium washers and dryers , and stainless-steel appliances . The four community amenities are pools , reserved parking , rooftop amenity space , and secured community access . Interestingly, the features and amenities that commanded the highest rent premiums in 2022 were not popular among survey respondents. Most participants either considered them of low priority or had a neutral opinion. However, the small percentage of respondents who did prioritize these features believed that renters would be willing to pay a substantial premium to live in a community that offers them. Out of all the features and amenities in the survey, valet parking received the highest estimated rent premium in 2022. On average, survey participants estimated that renters would pay an additional $88 per month to live in a community with valet parking. However, only four percent of respondents indicated that valet parking is
LILIA Honolulu, HI
would pay an extra $80 in rent to live in an apartment with this feature. This was the third-highest estimated premium in 2022. Like valet parking and floor-to-ceiling windows, most respondents did not prioritize bedroom balconies when searching for an apartment. Only nine percent of respondents considered the feature to be of very high importance, and an additional 16 percent considered it a high priority.
stated that renters would pay $87 in extra rent to live in an apartment with floor-to-ceiling windows. Nineteen percent of respondents rated floor-to-ceiling windows as a very high priority, and an additional 30 percent considered them a high priority, making a total of 49 percent, which was below the average for apartment features in 2022. On average, respondents who assigned bedroom balconies a very high priority estimated that renters
of very high importance, and an additional five percent considered it a high priority. When combining the rates of high and very high priority responses, valet parking ranked as the least important feature or amenity in the survey, with a combined response rate of only nine percent. Floor-to-ceiling windows were assigned the second- highest rent premium in 2022. On average, respondents
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FIGURE 3: AVERAGE EXPECTED RENT PREMIUMS FOR APARTMENT FEATURES IN 2022
Floor-to-ceiling Windows
$87
Bedroom Balcony
$80
Concrete Floors
$79
Living Room Balcony
$79
Hardwood-like Floors
$76
Additional Soundproofing
$76
Premium Washer and Dryer
$69
Stainless-steel Appliances
$68
Premium Countertops
$65
Alarm System
$64
Sound System with Bluetooth
$63
Mud Room
$63
Gas Stove
$59
Non-key Secure Access
$58
Wi-Fi-enabled Video Doorbell
$55
Pre-installed Wi-Fi
$55
Smart Thermostats
$53
Device-charging Stations
$45
LTD. MED CENTER Houston, TX
Only respondents who assign a feature a very high priority are asked to assign a rent premium. Source: Greystar Design Survey, 2022.
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FIGURE 4: AVERAGE EXPECTED RENT PREMIUMS FOR COMMUNITY AMENITIES IN 2022
Valet Parking Secured Community Access Concierge Services Pool Car-charging Station Rooftop Amenity Space
$88
$79
$74
$73
$72 $71
Reserved Parking Conference Room Clubhouse Fitness Trainer Playground Business Center Additional Storage Outside Unit Laundry Lockers Wi-Fi Café Outdoor Recreational Facilities Outdoor Kitchen Movie Theater Community Dog Park Fitness Classes Sustainability / Green Certifications Community Vegetable Garden Barbecue Grills Pet-washing Station
$67 $66
$66 $65
$60 $60 $60
$59 $59
$58
$56 $56 $56
$54
$53
$50
$49
$47
Package Lockers Community Wi-Fi Recycling Program Secured Bike Storage Valet Trash Service
$45
$43
$42
$39
$38
6TH + MAIN Salt Lake City, UT
Only respondents who assign an amenity a very high priority are asked to assign a rent premium. Source: Greystar Design Survey, 2022.
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Greystar sent the same version of the Design Survey to residents for four years, from 2019 through 2022. Looking back over survey responses from these eventful years, we see some interesting trends in what residents prioritize and how they perceive value. Trends
SKYE ON 6TH Phoenix, AZ
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EV CHARGING The importance given to car-charging stations by survey participants has increased significantly. In 2019, 10 percent of respondents considered them a high priority or very high priority. By 2022, the rate had increased to 18 percent. This remarkable increase – the largest among all the apartment features and community amenities included in the survey – was not too surprising considering that light duty electric drive vehicle monthly sales in the U.S. nearly tripled from 2019 to 2022. As more electric vehicles are expected to be on the roads in the coming years, the number of people prioritizing charging stations will almost certainly continue to grow. According to an aggregation of forecasts from multiple sources, 26.4 million electric vehicles will be on U.S. roads in 2030, an eleven-fold increase from 2.4 million at the end of 2021. Despite the increase, car-charging stations still ranked low in terms of high priority and very high priority response rates in 2022. Only laundry lockers and valet parking ranked lower. Nevertheless, it is remarkable that 18 percent of survey respondents viewed car-charging stations as a high or very high priority when only 1 percent of the 250 million cars, SUVs, and light-duty trucks on American roads in 2022 were electric vehicles. Demand for car-charging stations has grown the most in California, where the number of electric vehicle registrations is more than five times higher than in any other state. Among the 36 metropolitan areas with the most survey responses since 2019, six saw the rate of high and very high priority responses increase by more than 10 percentage points from 2019 to 2022. Four out of these six metropolitan areas were in California: Los Angeles, San Francisco, San Diego, and San Jose.
The importance assigned to car-charging stations increased most among residents who have high household incomes. Among survey respondents who earn more than $150,000, the share who considered charging stations a high or very high priority increased by 13 points in four years, doubling to 26 percent in 2022. For residents earning between $100,000 and $150,000 per year, the percentage increased by nearly 10 points, going from 11 percent in 2019 to nearly 21 percent in 2022. The demand for charging stations among residents with annual household incomes below $100,000 increased to a lesser extent. The percentage of residents earning between $50,000 and $100,000 who assigned a high or very high priority to charging stations increased to 16 percent in 2022 from 9 percent in 2019. Similarly, the percentage of residents earning less than $50,000 who assigned a high or very high priority increased to 15 percent in 2022 from 9 percent in 2019. However, the correlation between income and the importance assigned to car-charging stations is not consistent across all metropolitan areas. In Jacksonville and Tampa, for instance, the largest increases in high and very high priority responses were observed among respondents with household incomes below $50,000, while those with incomes above $100,000 showed the least increase. Additionally, it is not solely the case that metropolitan areas with high average incomes had the largest increases in high and very high priority responses. Greenville, SC, has relatively low incomes compared to other major metropolitan areas but experienced an increase of almost 12 points in high and very high priority response rates between 2019 and 2022. It ranked similarly to high-income areas in California regarding the increase in these rates.
These factors include state and local tax incentives, regional electricity costs, local gas prices, and regional variations in driving habits and traffic patterns.
The relationship between respondents’ incomes and their prioritization of car-charging stations is influenced by various factors that differ across metropolitan areas.
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FIGURE 5: CHANGE IN THE TOTAL RATE OF HIGH AND VERY HIGH PRIORITY RESPONSES FOR CAR CHARGING STATIONS , 2019-2022 Percentage points
Percentage points
Los Angeles San Francisco
15.7
Los Angeles San Francisco
15.7
14.3
Metropolitan areas where the rate has increased by more than 10 percentage points since 2019 Metropolitan areas where the rate has increased by more than 10 percentage points since 2019
14.3
San Diego Greenville Baltimore San Jose Seattle Riverside
12.1
San Diego Greenville Baltimore San Jose Seattle Riverside
12.1
11.7
11.7
10.9
10.9
10.2 9.9 9.9 9.7
10.2 9.9 9.9 9.7
Portland Chicago
9.6
Miami Austin
9.4
Portland Chicago
8.6
9.6
Nashville Charlotte All US metropolitan areas New York
8.5
Miami Austin
8.4 8.3 8.3
9.4
8.6
Nashville Charlotte All US metropolitan areas New York
8.5
Philadelphia Albuquerque Denver Charleston Dallas Las Vegas Houston
8.1
7.7
8.4 8.3 8.3
7.5 7.5 7.5
7.3 7.3
Philadelphia Albuquerque Denver Charleston Dallas Las Vegas Houston
8.1
7.7
Boston Atlanta Orlando Phoenix
7.0 7.0 7.0
7.5 7.5 7.5
6.6
San Antonio Minneapolis Tampa Washington Salt Lake City Jacksonville Raleigh Durham Spokane Kansas City
6.3
5.6
7.3 7.3
5.4 5.4
4.9
Boston Atlanta Orlando Phoenix
3.0 7.0 7.0 7.0
4.4
3.7
2.8
6.6
-0.5
San Antonio Minneapolis Tampa Washington
6.3
THE WELL Henderson, NV
5.6
Figure shows the 36 metros with the most survey responses since 2019. Source: Greystar Design Survey, 2022.
5.4 5.4
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FIGURE 6: CHANGE IN THE TOTAL RATE OF HIGH AND VERY HIGH PRIORITY RESPONSES FOR APARTMENT FEATURES , 2019-2022
Percentage points
Wi-Fi-enabled Video Doorbell
5.6
Alarm System
3.6
Premium Washer and Dryer
2.9
Mud Room
2.6
Living Room Balcony
2.6
Non-key Secure Access
2.5
Floor-to-ceiling Windows
2.0
Gas Stove
1.3
Additional Soundproofing
1.2
Concrete Floors
1.2
Device-charging Stations
1.2
Stainless-steel Appliances
0.7
UNIT ACCESS
Pre-installed Wi-Fi
0.7
Smart Thermostats
0.6
Among apartment unit features, Wi-Fi enabled video doorbells and alarm systems have gained the most importance for residents since 2019. The percentage of survey respondents who considered video doorbells a high or very high priority increased by almost six points from 2019 to 2022. Similarly, the percentage of respondents who identified alarm systems as a high or very high priority increased by nearly four points.
In 2022, the importance given to video doorbells and alarm systems by survey respondents increased significantly, with 42 percent of respondents considering video doorbells a high or very high priority, while 52 percent said the same about alarm systems.
Bedroom Balcony
0.3
Hardwood-like Floors
-0.2
Premium Countertops
-1.9
Sound System with Bluetooth
-3.4
Source: Greystar Design Survey, 2022.
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FIGURE 7: CHANGE IN THE TOTAL RATE OF HIGH AND VERY HIGH PRIORITY RESPONSES FOR COMMUNITY AMENITIES , 2019-2022
Percentage points
Car-charging Station Package Lockers Reserved Parking
8.3
5.0
4.7
Secured Bike Storage Community Dog Park Pet-washing Station Secured Community Access Additional Storage Outside Unit Conference Room Playground Community Vegetable Garden Valet Trash Service Valet Parking Business Center Outdoor Recreational Facilities Pool Concierge Services Rooftop Amenity Space Community Wi-Fi Movie Theater Clubhouse Laundry Lockers Outdoor Kitchen Wi-Fi Café Sustainability / Green Certifications Recycling Program
2.9
2.5
2.2
1.8
1.2
0.9
0.8
0.0
-0.1
-0.3
-1.5
-1.6
-2.0 -2.0
-2.6
-3.0 -3.0 -3.0
-3.1 -3.1
-3.9
-4.4 -4.4 -4.5
Fitness Trainer Fitness Classes Barbecue Grills
-5.3
-6.6
REVERB SPRING VALLEY Las Vegas, NV
Source: Greystar Design Survey, 2022.
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FIGURE 8: YEAR-OVER-YEAR CHANGE IN THE TOTAL RATE OF HIGH AND VERY HIGH PRIORITY RESPONSES FOR ALARM SYSTEMS AND WI-FI-ENABLED VIDEO DOORBELLS Wi-Fi-enabled Video Doorbell Alarm System
Wi-Fi-enabled Video Doorbell
Alarm System
3.4
3.4
2.5
2.5
1.1
1.1
0.3
0.8
1.1
1.1
0.3
0.8
2020
2021
2022
Source: Greystar Design Survey, 2022.
2020
2021
2022
National statistics on actual crime trends during 2021 and 2022 are not yet available. However, the Gallup survey clearly shows that the public perceives an increase in crime during this period, and this perception may be driving the increased demand for features that help residents monitor and control access to their units. The perceived importance of alarm systems and video doorbells increased significantly in Durham, Greenville, and Kansas City from 2019 to 2022. These three metropolitan areas ranked among the top five in terms of the increase in high and very high priority response rates for both features. Chicago and New York were also in the top five metropolitan areas for increased demand for alarm systems, while San Diego and Albuquerque were in the top five for increased demand for video doorbells. High and very high priority response rates for alarm systems increased the most in mid-rise and high-rise
The rate of respondents who considered video doorbells a high priority or very high priority increased by nearly three and a half percentage points from 2021 to 2022, which was a much larger increase compared to the roughly one-point increases observed in the previous two years. Similarly, the rate of respondents who assigned alarm systems a high or very high priority increased by two and a half points in 2022, whereas there was only a roughly one-point increase from 2020 to 2021 and less than a half-point increase from 2019 to 2020. The increase in importance assigned to video doorbells and alarm systems corresponds to a perceived increase in crime. According to Gallup polling, in 2022, Americans were more likely than at any other time in the past fifty years to say that there is more crime in their local area compared to a year ago. Fifty-six percent of U.S. adults reported an increase in crime where they live, a sharp rise from 38 percent in 2020.
The rate of high and very high priority responses for alarm systems increased more among respondents with annual household incomes between $25,000 and $100,000 compared to respondents in other income brackets. High and very high priority responses for video doorbells increased the most among residents earning less than $50,000 per year.
communities in urban neighborhoods, whereas the reported importance of video doorbells increased the most in garden- style communities in the suburbs. The demand for both features increased the most among respondents with annual household incomes below $100,000.
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PACKAGES
the Census started recording e-commerce sales in 1999. This surge in online shopping was in response to the COVID-19 pandemic, which led many people to switch from shopping in physical stores to shopping online. Respondents’ preference for package lockers continued to increase in 2021 and 2022, but the rate of growth slowed down as people returned to physical stores for at least a portion of their shopping. In 2020, the rate at which residents said package lockers are a high or very high priority increased by 3.4 percentage points. In 2021, it increased by 1.3 points, and in 2022, it only increased by 0.2 points.
High and very high priority responses increased more for package lockers than for any other amenity or feature included in the survey, except car-charging stations and video doorbells. In 2019, 64 percent of respondents said package lockers are a high or a very high priority. By 2022, that rate had increased to 69 percent. Most of this growth occurred in 2020, coinciding with a record-breaking increase in retail e-commerce sales. According to data from the U.S. Census Bureau, spending in e-commerce sales increased 43 percent in 2020, which included a 34 percent increase in seasonally adjusted sales during the second quarter alone, the largest quarter-over-quarter increase since
FIGURE 9: YEAR-OVER-YEAR CHANGE IN THE TOTAL RATE OF HIGH AND VERY HIGH PRIORITY RESPONSES FOR PACKAGE LOCKERS
3.4
1.3
0.2
2020
2021
2022
REVERB SPRING VALLEY Las Vegas, NV
Source: Greystar Design Survey, 2022.
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FITNESS, SUSTAINABILITY + GRILLING The importance of barbecue grills decreased more than any other amenity or feature in the survey. The share of respondents who considered them a high or very high priority decreased by over six and a half percentage points from 2019 to 2022. This decline accelerated in 2021 when Covid-19 restrictions started to ease. As residents had more opportunities to eat and socialize outside their
community-based fitness classes and trainers sped up in 2021 as residents were able to go back to gyms, yoga studios, and other fitness-related destinations outside their communities that were reopening following pandemic-related closures. The rates of high-priority responses for recycling programs and sustainability/green certifications decreased by almost four and a half percentage points from 2019 to 2022. Despite these declines, these amenities remain important to most survey participants. In 2022, recycling programs ranked fifth in terms of priority, with 57 percent of respondents considering them a high or very high priority. Sustainability/ green certifications ranked seventh, with 52 percent of respondents assigning them high or very high priority.
apartment buildings, the importance they placed on barbecue grills in their communities decreased.
After barbecue grills, the biggest declines in high- priority responses were for fitness classes and fitness trainers . The rate at which residents assigned high or very high priorities to fitness classes dropped by over five points from 2019 to 2022, and the rate for fitness trainers declined by four and a half points. Like barbecue grills, the decline in high-priority responses for
FIGURE 10: YEAR-OVER-YEAR CHANGE IN THE TOTAL RATE OF HIGH AND VERY HIGH PRIORITY RESPONSES FOR BARBECUE GRILLS , FITNESS CLASSES , AND FITNESS TRAINERS
Barbecue Grills
Fitness Classes Fitness Trainer
2020
2021
2022
-0.6
-0.3
-0.9
-1.0
-1.1
-2.6
-2.9
-3.1
THE MAREK LEBANON Lebanon, NH
-3.9
Source: Greystar Design Survey, 2022.
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FIGURE 11: CHANGE IN AVERAGE EXPECTED RENT PREMIUMS FOR APARTMENT FEATURES BETWEEN 2019 AND 2022
Concrete Floors
32.5%
Gas Stove
32%
Floor-to-ceiling Windows
21%
Device-charging Stations
20%
Living Room Balcony
20%
Mud Room
20%
Bedroom Balcony
19%
Additional Soundproofing
19%
Stainless-steel Appliances
18%
Premium Countertops
17%
Alarm System
15%
Hardwood-like Floors
14%
Non-key Secure Access
13%
Smart Thermostats
12%
Pre-installed Wi-Fi
10%
Premium Washer and Dryer
10%
Sound System with Bluetooth
9%
Wi-Fi-enabled Video Doorbell
6%
SMITH & RIO Tempe, AZ
Only respondents who assign a feature a very high priority are asked to assign a rent premium. Source: Greystar Design Survey, 2022.
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FIGURE 12: CHANGE IN AVERAGE EXPECTED RENT PREMIUMS FOR COMMUNITY AMENITIES BETWEEN 2019 AND 2022
Business Center Conference Room Concierge Services Wi-Fi Café Clubhouse Community Wi-Fi Playground Laundry Lockers
36%
33%
32%
28%
26%
24%
24%
23%
Car-charging Station Recycling Program Outdoor Kitchen Secured Community Access Additional Storage Outside Unit Package Lockers Barbecue Grills Outdoor Recreational Facilities Pool Fitness Trainer Valet Parking Pet-washing Station Secured Bike Storage Rooftop Amenity Space Reserved Parking Community Dog Park Sustainability / Green Certifications Community Vegetable Garden Fitness Classes Movie Theater Valet Trash Service
22%
21%
21%
20%
20%
19% 19%
18%
18%
16%
16%
15%
14% 14% 14%
13% 13%
12%
9%
9%
2%
HARLOWE Nashville, TN
Only respondents who assign an amenity a very high priority are asked to assign a rent premium. Source: Greystar Design Survey, 2022. 40
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RENT PREMIUMS + INFLATION In 2022, the premiums that survey participants expected renters to pay for apartment features and community amenities increased significantly. This reflected similar growth in rent prices across the country, as well as the U.S. inflation rate, which reached its highest point in 40 years. In 2022, the average rent premium assigned to community amenities went up by 14 percent to $66, and the average premium assigned to apartment features increased by 12 percent to $59. These increases were much larger than in 2021, when the premiums for community amenities and apartment features only went up by three percent and four percent, respectively. In
2020, year-over-year increases in average rent premiums were even smaller at two percent for community amenities and almost zero percent for apartment features. The trend in rent premiums is similar to the trend in average effective rent at apartment communities managed by Greystar, which went up by 11 percent in 2022, compared to only two percent in 2021, and declined three percent in 2020. These trends also reflect the rise in prices for other goods and services over the past few years. The consumer price index for all urban consumers (CPI-U), which measures inflation, went up by eight percent in 2022 compared to five percent in 2021 and one percent in 2020.
FIGURE 13: YEAR-OVER-YEAR CHANGE IN EFFECTIVE RENT AND EXPECTED RENT PREMIUMS FOR APARTMENT FEATURES AND COMMUNITY AMENITIES
Avg. Lease Effective Rent
14%
Avg. Rent Premium for Apartment Features
12%
11%
Avg. Rent Premium for Community Amenitis
4%
3%
0%
2%
2%
2020
2021
2022
-3%
AVANA BAYVIEW APARTMENTS Pompano Beach, FL
Only respondents who assign a feature or amenity a very high priority are asked to assign a rent premium. Source: Greystar Research, Greystar Design Survey, 2022.
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HYBRID WORK The nation’s focus on COVID-19 may be decreasing, but the hybrid work models we embraced during the pandemic remain popular. A recent survey shows that more than 70 percent of US employers have employees who follow a hybrid work schedule. As the residents of Greystar-managed communities have adjusted their work habits, their opinions about amenities and design features have also changed. For example, survey respondents are reporting large increases in the premiums renters will pay to live in communities with conference rooms and business centers . In 2022, participants stated that renters would pay an additional $60 in rent to live in a community with a business center. This amount is 36 percent higher than the $44 premium that participants expected in 2019. Similarly, participants mentioned that renters would pay a $66 premium to live in a community with a conference room, which is a 33 percent increase from
2019 when respondents expected renters to pay $50 extra for this amenity. These were the largest increases in rent premiums observed across apartment features and community amenities between 2019 and 2022. The growth in premiums for these work-related amenities accelerated significantly in 2022 compared to the previous two years. The rent premium assigned to business centers increased by 28 percent in 2022, compared to a one percent increase in 2021 and a five percent increase in 2020. Likewise, the average premium assigned to conference rooms increased by 31 percent in 2022, compared to a one percent decline in 2021 and a three percent increase in 2020. While inflation plays a role in this growth, the fact that premiums for amenities that support remote work increased more than premiums for other features and amenities suggests that there are other factors involved. The growing acceptance of hybrid work has made these features more valuable to renters.
FIGURE 14: YEAR-OVER-YEAR CHANGE IN EXPECTED RENT PREMIUMS FOR BUSINESS CENTERS AND CONFERENCE ROOMS Business Center Conference Room
Business Center
Conference Room
31%
28%
31%
28%
3%
1%
5%
3%
-1%
1%
5%
SKYE ON 6TH Phoenix, AZ
2020
2021
2022
-1%
Only respondents who assign an amenity a very high priority are asked to assign a rent premium. Source: Greystar Design Survey, 2022.
2020
2021
2022
44
45
Additional Resources
Discover the 2023 Design Survey Dashboard – an interactive tool showcasing design survey results from 2019 to 2022. Filter and compare data across markets, explore resident preferences for apartment features and amenities, and track trends pre and post COVID-19. This companion to the 2023 Design Survey Report provides valuable insights for informed decision-making. Visit the dashboard now for a comprehensive understanding of resident preferences regarding community amenities and apartment design..
GO TO DASHBOARD >
ENCLAVE AT RARITAN Flemington, NJ
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BY DESIGN + BACKED BY DATA: 2023 SURVEY REPORT UNDERSTANDING RENTER PREFERENCES, PRIORITIES + PERSPECTIVES
ALSO AVAILABLE:
BY DESIGN: 2023 TRENDS VOLUME 8.1 DECONSTRUCTING TRENDS FOR SPACES + EXPERIENCES
CONTACTS
GREYSTAR RESEARCH AND ANALYTICS SERVICES Quinn Eddins Managing Director quinn.eddins@greystar.com Heng Zhou Senior Associate heng.zhou@greystar.com Shengchao Ying Associate shengchao.ying@greystar.com
GREYSTAR CLIENT SERVICES Michelle Betchner-Cowan Senior Managing Director clientservices@greystar.com
GREYSTAR CREATIVE SERVICES + BRANDING Michaela Fortunato
Marketing-Communications Manager michaela.fortunato@greystar.com
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