The Secret to Affordable Apartments: Skip the Amenities

The need for affordable housing is outweighing tenant desire for luxury amenities, John Burns Real Estate Consulting reports.

Our consumer research shows that the most valued amenity is frequently “low rent.” A recent survey by the NMHC showed that the two top community amenities nationwide are:

• reliable cell reception (78%)
• secure resident parking (71%)

Only 60% desired a swimming pool, and 55% wanted a fitness center.

One way to provide more affordable rental options is by building smaller apartment communities without amenities or with fewer amenities. Foregoing traditional community amenities (pool, fitness center, etc.) reduces development and operating costs, allowing for more affordable rental rates.

We suggest looking for locations where the amenities are nearby and free. Below are a few strategies to keep in mind:

• Walkability. Locations with easy access to parks, restaurants, shopping, and/or mass transit command high rents. Advertise your proximity to the local fitness center, park/community pool, hiking/bike trails, and dog park. If applicable, promote high walk or bike scores. Market the surrounding neighborhood as the amenity.
• Nearby businesses. Build partnerships with the local fitness centers where residents get discounted monthly gym fees, yoga/cycling classes, etc.

Read more