Healthy is the New "Green" in Multihousing/Multifamily
That seems to be the big takeaway from the past few months of the real estate market riding the Covid rollercoaster. Antibacterial coatings and sanitizers are everywhere, and touchless bathrooms are all the rage.
This trend started long before Covid – we've been wearing smart devices that monitor our sleep, pulse, oxygen levels, etc. The absence of health-facilitating amenities such as gyms, pools, and green spaces have been dealbreakers for many prospective tenants for almost a decade. The health factor had become synonymous with upward mobility, comfort, and higher quality of life; and with the pandemic on everyone's mind – this isn't up for debate anymore.
Many builders have recognized this, some haven't. The important thing to wrap your head around is that wellness-centered upgrades, however minimal, will become strong differentiating factors, and will be playing an important role in real estate decisionmaking process. Developers will be losing sales to other builders who offer almost the exact same homes with the same features, but with air purification filters and integrated water softening equipment.
Community garden at The Irvine apartments in Philadelphia, PA
We will likely soon be witnessing a shift in the cost-benefit relationship for many people considering investing in residential properties. The public will be more inclined to spend more in exchange for a healthier environment, than to save more and compromise the immune system. It's also important to keep in mind that as a result of the coronavirus situation, consumers are exposed to more research and information than ever before. While some are still dabbling in pseudo-science and conspiracy theories, the vast majority of consumers are educating themselves in an effort to keep their families healthier and safer.
Social media is saturated with articles about expanded cork board being the ultimate choice for non-toxic insulation, and spray foam insulation being the root of all evil. Consumers will now openly avoid phthalate plasticizers and spray foam, and prefer acrylic-based and caulk-type sealants for their spaces. Same goes for metal weatherstripping, and VOC has become a household acronym.
Although the senior sector is currently facing economic and PR challenges, we at Mega are looking forward to what the future holds. In many ways, the pandemic has accelerated innovations in technology, infrastructure, design and health protocols that will greatly benefit the post-covid generations. For the long term, safety is key. Buildings across the United States are applying safety guidelines and protocols recommended by the Centers for Disease Control and Prevention and the World Health Organization to ensure the safety of staff and tenants.
Because building codes don’t require the use of certain types of materials, promotion of healthier materials can be accomplished through updates to performance requirements or through product innovation instead. Here’s some things you can start doing or at least looking into to reserve your seat at the forefront of the new health-conscious real estate food chain:
• Influence State and Local Policy in the Affordable Housing and Multifamily Development Sector
• Ensure Appropriate Education and Guidance in Your Workforce Development
• Get Engaged, Educate Yourself on the Regulations, and Leverage Policy Incentives to Create Change
• Catalyze Product Innovation by Requiring Manufacturers to Expand Transparency and Disclosures
Medium and long-term investment sentiment is bullish. The $2 trillion CARES Act contains support for affordable housing operators that includes health-care grants and low-interest loans, which means developers will be facing off in the upcoming battle of who can provide a healthier environment. We at Mega envision a future when upgrades make buildings energy efficient, create environments that promote health, and contribute to the well-being of communities from affordable housing to luxury condos.
Please join us in making this future – our future.