Location, location, location—there’s a reason that this saying has become synonymous with real estate. As one of the biggest factors, location of an apartment plays a huge role in both the price and desirability. And while historically sought-after locations like New York, Chicago, and San Francisco are bouncing back after historic lows during the COVID-19 pandemic, that also means a steeper price tag for renters.
As a result, a new trend is emerging: renters are increasingly exploring further-afield cities that offer a blend of affordability, convenience, and amenities that are often at an unattainable price point in more expensive cities.
Despite the fact that many people moved out of large metro areas like New York and San Francisco to smaller cities during the pandemic, this trend is not new. Since 2012, mid-sized cities across the country have seen increases in net domestic migration, while major cities, on the other hand, have experienced decreases. This trend was then accelerated by the pandemic, and is likely to continue as people are eager to stray away from the climbing costs of larger cities.
Cities like Raleigh, North Carolina, Greenville, South Carolina, and Jacksonville, Florida rank as some of the most desirable locations nationwide when comparing average salary and median home price. It’s easy to see why when you look at the numbers. In July 2021, the median cost of rent in New York City was $3,150 for a one-bedroom apartment. In Greenville, South Carolina, on the other hand, it’s less than half the cost at $1,279.
Despite the lower costs, multifamily living in second cities delivers the same premium experience available to those in major metro areas. From New Hope, Minnesota to Scottsdale, Arizona, apartments deliver residents a more modern experience. By adding technology that delivers added flexibility like Latch, these buildings offer the same amenities and conveniences of those in New York and San Francisco, all for a fraction of the price.
Trying to attract renters in your market? Contact the Latch Sales team to help set yourself apart.
Smart building technology delivers a wide range of financial benefits for multifamily owners and operators. From cost efficiencies to improved customer experience, a strategic investment in the right technology solution can positively impact both the cost and revenue sides of the ledger.
There are several different ways to estimate how smart communities achieve ROI. Learn more about the four most popular approaches in our easy-to-read guides.