Community Amenities: Driving Value and Returns for Multifamily Investors

These premiums directly contribute to a property's bottom line, with quality social amenities capable of generating significant additional monthly revenue per unit. For a mid-sized multifamily property, these community-focused amenities can represent substantial additional annual revenue while simultaneously improving resident satisfaction and retention. 

 Beyond Rental Premiums: The Full Value Proposition  

While rental premiums provide the most direct financial benefit, community amenities create additional value through: 

 1. Reduced Turnover and Marketing Costs 

Properties with robust community amenities typically experience: 

• Lower turnover rates due to higher resident satisfaction 

• Decreased vacancy periods between leases 

• Reduced marketing costs as more leases come through resident referrals 

 2. Competitive Differentiation in Saturated Markets 

In markets with significant multifamily development, distinctive community amenities serve as crucial differentiators that: 

• Capture prospective resident attention during property searches 

• Create memorable selling points for leasing teams 

• Generate positive reviews and social media visibility 

This competitive advantage is particularly valuable in supply-heavy markets where multiple properties offer similar location and unit features. 

3. Demographic Targeting and Resident Alignment 

Strategic amenity selection enables properties to: 

• Target specific demographic groups with precision 

• Create communities of like-minded residents 

• Foster retention through social connections among compatible neighbors 

The Greystar survey provides clear evidence for this targeting approach, with regional preferences showing significant variation. For example, pools are essential to 56% of Miami respondents but much less important in cooler northern markets. 

 Making Data-Driven Amenity Investments 

For developers and investors, the Greystar data provides a roadmap for maximizing returns on amenity investments: 

Prioritize High-ROI Community Amenities 

The highest-return community amenities generally fall into several categories: 

1. Social gathering amenities like on-site clubhouses and community spaces, which create venues for resident interaction and social connection 

2. Pet-focused social spaces like community dog parks, which serve the 70% of apartment residents who own pets 

3. Wellness-oriented community features like steam rooms and meditation centers, which bring residents together around shared wellness goals 

These "power amenities" should form the foundation of most multifamily community amenity packages based on their consistent performance across markets. 

 Create Strategic Amenity Packages Based on Market Research 

The Greystar data demonstrates the importance of tailoring amenity offerings to local market preferences: 

• Urban markets: Emphasize space-efficient amenities like co-working areas, automated package delivery, and roof decks 

• Suburban markets: Focus on outdoor amenities, pet facilities, and family-friendly features 

• Sunbelt regions: Prioritize pools, outdoor kitchens, and temperature-controlled outdoor spaces 

• Northern regions: Invest in indoor social spaces, fitness facilities, and entertainment options 

These market-specific approaches ensure amenity dollars are directed toward features that drive the highest returns in each location. 

Leverage Emerging Trends for Forward-Looking Value 

While established amenities deliver immediate returns, forward-thinking investors should consider emerging amenities that show strong interest indicators: 

• Sustainability-focused amenities like community gardens (27% interest) and rentable greenhouses (11% interest) appeal to environmentally conscious renters and create distinctive marketing opportunities 

• Specialized wellness features like meditation centers (31% interest) attract health-focused residents willing to pay premium rents 

• Culinary amenities like pizza ovens (21% interest) and outdoor kitchens (32% interest) create community gathering opportunities that drive resident satisfaction 

These emerging amenities may deliver increasing returns as consumer preferences continue to evolve toward experience-based living. 

 Cost-Effective Community Building Strategies 

Not all community-enhancing investments require substantial capital expenditure. Several approaches offer strong returns with modest investment: 

 1. Programming Over Hardware 

Many properties have found that quality programming of existing spaces delivers better returns than additional amenity construction: 

• Regular resident events in existing common areas 

• Community partnerships with local businesses 

• Resident clubs and interest groups 

• Seasonal celebrations and gatherings 

These programming initiatives often cost a fraction of hard amenities while significantly enhancing community connection and resident satisfaction. 

 2. Strategic Amenity Repurposing 

Operators can refresh underutilized spaces to align with evolving resident preferences: 

• Converting rarely-used formal lounges to co-working spaces 

• Transforming passive green spaces into active recreation areas 

• Adapting traditional media rooms to multi-purpose event venues 

• Updating business centers with device charging stations and bookable private areas