The rental housing industry is embracing smart technologies and solutions, flexible designs and transit-oriented communities to meet the rising demand for affordable, resident-centric living.  

Reflection allows companies to look back at a specific period and draw conclusions, but not necessarily only about past performances—this information can be used to make better, informed decisions about the future. While the rental housing industry takes time to assess 2025, industry leaders optimistically shift focus toward 2026.   

Firms are researching new markets and ways to make communities more attractive to prospective residents. This includes beefing up amenities, unit and communitywide designs, and technology. Through these forces, the rental housing industry can modify community offerings (and locations) based on renter preferences, to a certain extent. Transit-oriented developments (TODs) aren’t new, but they are gaining momentum as residents choose lifestyles without personal vehicles as their No. 1 mode of transportation, especially in metros that allow for it such as Chicago and New York.   

While these new innovations, design trends and tech functions will be prominent in the industry in 2026 and beyond, they are also the source of some of the next challenges that await multifamily housing professionals in the days, weeks, months and years ahead.   

Emerging Markets

“Our focus on emerging markets stems from the opportunity to create inclusive, connected communities that reflect how people aspire to live today,” says Charlton Hamer, Senior Vice President, Habitat Affordable Group. “By targeting markets with untapped potential, we deliver housing that is both attainable and aspirational—balancing design, sustainability and lasting community impact…. These projects offer strong neighborhood identities, access to transit and employment centers and the ability to support local revitalization.”   

Communities are melding with neighborhoods to create an atmosphere that is warm, inviting and styled with care. Amenities and designs are blending with local history to support and welcome the incoming, new residents.   

The Lucy, in Jersey City, N.J., is a redevelopment project on a historic church site. “The 444-unit rental tower preserves and repurposes historic elements from St. Lucy’s site, harmonizing them into a bold new architectural icon that reflects Jersey City’s dynamic growth,” says Mary Cook, President and Founder of Mary Cook Associates.   

Elsewhere in New Jersey, the Stonehill at West Orange common areas feature a backdrop collage of more than 20 hat molds in an open stairway that connects the main lobby and second floor, “a nod to the haberdasheries once located nearby,” Cook says.   

Meanwhile, in Fort Worth’s growing River District, The Sadie is designed to “complement the character of the neighborhood,” Cook adds.   

“As Sun Belt markets absorb large deliveries, we see emerging opportunities across the Midwest in secondary and tertiary metros where demand remains strong but supply pipelines are constrained,” Hamer says.   

Residents’ changing demands caused a shift in the marketplace for some housing providers in what products they are focusing on in the near term. There’s more demand for affordable living, larger spaces, places to work remotely and to be near transportation—driving factors leading the way for emerging markets, Cook says. “As popular, fast-growing areas become saturated, built out and more expensive, it’s natural that people expand farther from primary urban centers until they can afford the lifestyle they’re seeking.”   

The evolution of markets can be seen as tertiary markets become more desirable, primary markets that transform into vibrant, urban cores, Cook adds. For example, demand increased in Frisco, once a tertiary market for Dallas, resulting in an “incentivized development of a 147-acre mixed-use, pedestrian-friendly town square featuring residential units, retail, entertainment venues and open green space,” Cook says.

Affordable housing is also trending in markets near greater Miami and northern New Jersey outside New York City, areas that can be supported by public transit and quality public schools.   

Flexibility, Wellness and Connection   

Renters have a checklist when searching for a new place to live or deciding to renew their lease agreement. While in a different order based on each resident’s personal preference, the items can generally be categorized into overarching trends.   

Renters are searching for a place to live that fits their lifestyle, not the other way around, so housing providers are meeting residents in this space to give them the best possible customer service as well as living experience.   

“Renter expectations continue to evolve around flexibility, wellness and community connection,” says Jessica Perri, Director of Marketing, Habitat. “Residents are seeking spaces that support hybrid lifestyles—with design elements that make working from home more comfortable alongside shared amenities that encourage in-person interaction.” Habitat is highlighting outdoor activities and other wellness-focused amenities and programs. “These insights are shaping everything from unit layouts to amenity selection and event programming across our portfolio,” according to Perri.   

Along with wellness, Cook adds that convenience and quality of life are also key factors renters consider. “Amenity-rich developments with a strong sense of community, state-of-the-art remote workspaces, bike storage, walkability and easy access to public transportation are equally important,” Cook says.   

Diving in, age is more than a number. Generation X (those born between 1965–1980) may have families and prioritize having more space for kids or pets; a garage; and proximity to highly rated schools. Baby Boomers (born between 1946–1964) are searching for safety, security and comfort with low maintenance and the possibility of full-service building staff.   

According to Cook: “Macro trends—such as the digital transformation of banking, communication, education, work and shopping—have reshaped building layouts and operations over the last decade. Highly adaptable spaces that support a range of work and social activities, along with the latest technology, continue to take center stage in design.”   

Multifamily housing projects in the pipeline for Lendlease are pulling from boutique hotels, “both in aesthetic and in service offerings, as today’s residents expect comfort, style and a concierge experience that elevates daily living,” says Ryan Burton, Senior Vice President, Development Director at Lendlease. “At the same time, there’s a growing appreciation for context, and many design teams are pulling cues from the surrounding environment to give projects a stronger sense of place.”   

Risks   

Economic risks are always present in business, so 2025 is no different than any other year—market uncertainty will exist in the heads of housing providers. Perri says they are using creative financing and prioritizing projects with longer-term stability, leveraging tax credits and other incentives as well as going the mixed-use development route to combat rising costs surrounding insurance and construction.   

Investors are cautious and want to minimize financial risks, Cook says. Her firm has begun a brand-new “Partner in Yes” program to help stakeholders with “high-impact visuals that showcase a project’s value during the investment-seeking phase. Combined with an engaging narrative that tells the project’s story, we’re helping to shorten the financing lifecycle and secure green lights for new projects,” she says.   

“The emphasis has shifted from pure growth to sustainable, resilient investment decisions that balance affordability with design excellence,” Perri says.   

Amenities

Bike storage and state-of-the-art fitness centers are now standard, Cook says. Pet offerings like dog parks, spas, and food and washing stations are also becoming more widespread, while package and storage rooms for resident deliveries are evolving into meeting places and locations for social interactions. Also, top of mind are outdoor amenities spaces.   

“Innovation at Habitat is about enhancing daily life and deepening residents’ connection to where they live,” Perri says. This is done with smart home tech features, energy efficient systems and products, and sustainable materials. “We’re also seeing rapid adoption of digital resident platforms that streamline communication, maintenance and engagement…. Flexible shared spaces, wellness-focused amenities and thoughtful design details continue to shape how we create environments that feel both personal and connected.”   

The Year Ahead

The lines between home, work and leisure have blurred, according to Burton, who says this is an opportunity for continued expansion of TODs and mixed-used developments. “Multifamily developments that tap into—or help create—vibrant, walkable, 24-hour neighborhoods will stay relevant well beyond their initial lease-up,” Burton says, referring to Habitat Residences located near the La Cienega/Jefferson E Line rail stop in Los Angeles.   

Other types of rental housing communities also continue to gain ground moving forward. “We anticipate continued momentum in mixed-income models that serve as catalysts for neighborhood growth. Ultimately, it’s about building for the next generation of renters while strengthening the communities we call home,” Hamer says. The firm is also diving into more products like build-to-rent (BTR) in suburban markets.   

Overall, the rental housing industry is growing at an exponential rate, mainly by its use of technology and other helpful solutions. “As an industry, we’ve advanced more in the past 10 years than we did in the previous 50,” says Timothy Kramer, Vice President and Director of Operations, Management Services with Draper and Kramer. “We were slow to ‘technologize,’ and now it seems that the changes can’t come quick enough.”   

Despite the helpful solutions technology has provided, there are still challenges with its use, especially integrating artificial intelligence (AI) and “understanding how it will affect our customers—both internal and external customers,” Kramer says. Tech burnout is real and can cause companies to have tech paralysis. “Many shiny, new technology tools are solutions in search of problems, and part of my job is to carefully control the flow of new technology to site teams to ensure it is a welcome addition rather than additional pressure,” he adds.   

While the use of technology has grown, there are some who still prefer the human aspect of the industry. Kramer says residents might look for those “off-ramps” to speak with a human after using technology or an AI system for FAQs or similar requests for maintenance, tours or upkeep. When using technology, it’s important to note that all stakeholders need to be involved, including site teams and management operations members—meaning those people need to be included in testing and decision-making (despite not necessarily making the ultimate decision).   

Housing providers also have their sights on the potential economic challenges ahead; living through past economic tests has prepared them. The ability to manage tight budgets through rising labor and/or materials costs is often a concern keeping the industry up at night. “Achieving excellence today requires a solid process, deep knowledge of materials, talented design expertise and proven experience,” Cook says.   

“The future of multifamily housing lies in balancing affordability, sustainability and resident-centered design,” Hamer says. “The greatest opportunity—and challenge—will be delivering attainable housing that meets modern expectations without sacrificing quality or environmental responsibility.”  

 

Michael Miller is NAA’s managing editor.