#USA #Dallas #Parks Associates #Cox Communities #Gigabit Internet

New Trends in Multifamily Internet Connectivity

In a recent study by Parks Associates, it was revealed that almost one in five residents living in multifamily housing units are enjoying internet speeds of one gigabit per second or more. This significant data point emerges from their latest white paper titled A Guide to Connectivity Innovations in Multifamily Housing, which was created in collaboration with Cox Communities. The research underscores the changing landscape of internet connectivity specifically tailored for multifamily properties, giving property owners and managers critical insights into effective strategies for enhancing resident satisfaction.

The Current State of Internet Connectivity

The study highlights that the demand for high-speed internet is growing among residents of multifamily units, with gigabit and multigigabit offerings becoming a significant draw for potential tenants. According to Kristen Hanich, Director of Research at Parks Associates, the choices made about connectivity in both new and older buildings are pivotal in attracting and retaining residents.

Different Connectivity Options Explored

The research investigates various connectivity models available to multifamily properties, such as bulk internet services and retail options. Bulk service plans, where residents either pay an amenity fee or receive internet as part of their rent, account for 10-12% of multifamily internet users. In contrast, a more substantial 80-82% of residents opt for retail service plans, paying internet service providers directly for their connectivity.

On average, residents are spending around $79 each month on retail internet services. The analysis suggests a direct correlation between internet speed and customer satisfaction; those with access to high-speed internet report the highest satisfaction levels, while those on slower plans experience dissatisfaction.

Implications for Multifamily Property Owners

With the Net Promoter Score (NPS) for apartments currently sitting at a concerning -25, the research emphasizes the potential boost in satisfaction and attractiveness when bulk internet is implemented. Properties without bulk services average an NPS of -28, while those incorporating this amenity see a rise of 26 points. This trend is further reinforced by the observation that integrating bulk internet with smart amenities and security features positively influences tenant experiences.

The report also points out that condominium developments enjoy a relatively higher NPS of 12; this score increases further when bulk internet connectivity is also provided. Vickie Rodgers, Senior Vice President at Cox Communities, stresses the importance of reliable connectivity as a fundamental amenity that can define the living experiences of residents.

Future Considerations

As demand for instant and dependable internet access continues to rise, multifamily property owners are urged to reassess their connectivity strategies. By adopting a well-considered approach to evaluate connectivity options, property managers can align their services with long-term resident satisfaction goals, thereby securing a competitive edge in the rental market.

The comprehensive white paper offers detailed insights and a roadmap for implementing effective connectivity strategies, crucial for multifamily housing's future.

For anyone looking to explore this important topic further or interested in this research, the white paper is available for download, providing extensive data points and strategies that can significantly affect the management of high-speed internet in multiproperty environments. For interview requests or further inquiries, contact Mindi Sue Sternblitz-Rubenstein at Parks Associates.