Hartford Business Journal

8 Hartford Business Journal • March 12, 2018 • www.HartfordBusiness.com EXPERTS CORNER Developers must prep for apartments of tomorrow By Rick Haughey D isruptive forces facing the real estate industry, such as the sharing economy, reimag- ined customer experiences, demographic/psychographic shifts and the pervasive impact of technology, mean the apart- ments of tomor- row should be radically different than today's mul- tifamily spaces. The sharing economy, for ex- ample, is chipping away at the divide between public and private space, prompting apart- ment communities to become more integrated into the larger community. The National Multifamily Housing Council's 2018 Consumer Housing Insights Survey found that 58 percent of Millennials even believe that apartments should provide helpful services and ame- nities to the surrounding community. As the multifamily industry be- gins to plan for, develop and open the apartment communities of tomor- row, understanding what residents expect from their living space is key to maintaining high occupancy rates and a competitive edge. A global perspective on wellness Health and wellness has evolved into a global concept that incorporates mind, body and spirit. And, while rent- ers have long ranked fitness centers among the most desirable apartment amenities, they now also crave spaces to refresh and renew. With 76 percent of respondents noting they are working to achieve a healthy lifestyle, apartment communi- ties need to reshape their offerings to meet this demand. Think interactive fitness amenities, wellness centers and space to decompress. Interestingly, while 93 percent of respondents crave a tranquil space to unwind and unplug, 57 percent seek an environment to promote better sleep. The latter is aligned with growth in the global sleep aid market, which was valued at $49.5 billion in 2016 and projected to reach $79.9 billion by 2022, according to Allied Market Research. Staying connected For renters, access to reliable cell re- ception and high-speed internet is im- portant — as is space for face-to-face interaction with family and friends. While we live in a digital world, approximately four out of five re- spondents (83 percent) note places to socialize face to face are important. What does this mean for tomorrow's apartment communities? Think units with in-wall furniture storage and dynamic community spaces that can meet this need. It's time to adapt Just as the multifamily industry must adapt to new demands, residents seek spaces that can adapt to their changing needs. For 83 percent of respondents, a space that evolves with different stages of your life is important, while 78 percent seek space that can adapt to meet different needs. Further driving the need for adapta- tion are seismic shifts in the ways that FOCUS: Residential Real Estate There have been encouraging signs this winter — increased foot traffic at open houses, a more stable local economy — that have realtors in the Hartford region optimistic about a busy selling season. While year-over-year Greater Hartford home sales were down 20 percent in January, accord- ing to the Greater Hartford Asso- ciation of Realtors, Paula Ostop, a re- altor with William Raveis in West Hartford, said an increased inven- tory of homes this spring — typically the busiest time for homes going on the market — is going to correct that. "What's on the market [currently] is not fitting the needs of buyers in the market at the moment," said Ostop, who largely serves clients in Hartford, West Hartford, the Farmington Valley and Glastonbury. "But it's a great time to buy a home because prices are still a bit depressed, interest rates are still low and moving into a larger home is more affordable than it was a few years ago. That combina- tion of factors has created pent-up demand. At the same time, says John Glascock, di- rector of UConn's Center for Real Estate and Urban Economics, sell- ers have come to accept that their homes won't likely recapture the full amount of their property's pre- Great Recession values and are willing to sell at a lower price point. In fact, a decade removed from the bottom of the recession, Greater Hartford's median home sales price last year ($221,000) was still lower than in 2007. Glascock said the greatest impact of Connecticut's post-recession economy has been on the upper-end of the real estate market. "The state lost a lot of six-figure salary jobs [after 2008] and the jobs that have replaced them are lower-wage jobs — in the $50,000 to $85,000 range," he said. "It creates a very different profile of a [prospective] buyer in the state." And it's making higher-end homes — $700,000 and up — more challenging to Selling Season CT realty agents optimistic about active spring homebuying season By Matthew Broderick Special to the Hartford Business Journal W hen temperatures climbed to a record- setting 70-plus degrees on Feb. 21, it felt like spring had arrived early in Connecticut. Area realtors hope this spring's residential real estate market is equally hot. Rick Haughey PHOTOS | CONTRIBUTED January Greater Hartford Homes Sales Homes Condos Jan. 2016 Jan. 2017 % Change Jan. 2016 Jan. 2017 % Change Closed Sales 805 644 -20% 185 168 -9.19% Median Prices 195,300 209,000 7.01% 135,000 149,000 10.37% Days on Market 75 89 18.67% 84 88 4.76% New Listings 1,236 1,103 -10.76% N/A N/A N/A Inventory 4,546 3,826 -15.84% 1,136 902 -20.6% Source: Greater Hartford Association of Realtors Paula Ostop, Realtor, William Raveis 609 Fern St. in West Hartford, a four-bedroom colonial for sale for $459,000, has features attractive to today's homebuyers, including a renovated kitchen.

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