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
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