By Dan Doyle, Senior Vice President of Development, The Beach Co.

Of all the regions in the U.S., projections indicate the Southeast will experience the highest renter growth in the coming years. With nearly 40% of future residents to the region, developers are scrambling to meet demand.

The Beach Co., headquartered in Charleston, SC, has been building apartments in key markets for more than 75 years. The current pipeline includes projects in Nashville, Charleston, Greenville, SC and Chattanooga, TN. While each project is unique to the Southeast, the following industry trends are those that all multifamily developers should have on their radar.

Increased Segmentation. The multifamily industry has been heavily weighted at the top end of the market in past years. However, look for increased middle-market demand, especially in more suburban areas, in 2019.

Alternative Finance Streams. The multifamily business model has remained relatively unchanged for decades. The model, however, is evolving and catching up with modern businesses in a variety of ways. For example, a growing number of communities allow non-residents to purchase memberships to common-area amenities, such as fitness centers, to offset residents’ maintenance costs.

Larger Floorplans. While developers in the Northeast are embracing the microunit trend, our multifamily market research is pointing to a higher demand for larger apartment units. The studio floorplan is still as relevant as ever, but a growing number of residents want more space.

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