As we move through 2025, multifamily real estate is at a fascinating juncture. The ways in which we manage, develop, and meet the expectations of renters are evolving rapidly. Some of the trends shaping the year come with high-tech appeal, while others are rooted in smart urban planning and a deeper understanding of what “home” means to today’s renters. Here’s a look at some of the trends shaping multifamily real estate this year.
1. AI: Moving Beyond the Hype to Practicality
The buzz around AI has been loud, and as it settles, we’re seeing it find a purposeful place in property management. In 2025, AI will be less about headlines and more about helping us deliver a better resident experience. From streamlining the rental application process to automating routine workflows like coding invoices, AI is stepping in so that our property managers can step out even more into the communities they serve. It’s not just about saving time or money—it’s about ensuring that the time teams spend on tasks is meaningful and impactful. Automated responses and chat features help field routine questions, as property managers are front and center when it comes to important, timely matters, ready to assist with a human perspective and people-first approach. AI is helping to strike a balance, letting property managers be both efficient and deeply attentive to, and fully present for, the needs of residents.
2. Transit-Oriented Development: Communities with Connection
One of the more innovative policy shifts has been a focus on transit-oriented development, especially here in Massachusetts. State mandates now incentivize municipalities to create multifamily housing near transit hubs, a step that aims to make cities more accessible and reduce congestion. At Heritage Properties, we’re seeing this trend unfold firsthand with projects like 218 Middlesex, located in one of these transit-oriented zones. A transit-focused policy landscape allows us to focus more intently on quality housing in connected, pedestrian-oriented neighborhoods. This type of zoning will make it easier to develop new housing in areas close to public transit, which is a win for everyone: residents gain easy access to work and amenities, and communities become more sustainable.
3. A New Demographic Mix: Redefining Renters
In the past, the multifamily market often segmented renters into two groups: those renting “by choice” and those renting “by necessity.” Today, these lines are being blurred. As recent research tells us, the appeal of renting is no longer tied only to finances. Flexibility, mobility, and access to quality amenities, like community events and pet-friendly areas, have become top priorities for a growing segment of renters, from young professionals to retirees, with 66% of renters saying “renting fits their current lifestyle more than owning a home.” This trend prompts us to rethink our designs and our approach to service. Today’s renter is seeking a community that fits their lifestyle, whether that’s near the action in a city center or in a quieter, transit-connected neighborhood. The primary goal is to create spaces that appeal to this new blend of renters, delivering both quality and a sense of community at every property.
4. Raising the Bar: Hospitality as a Standard
In addition to the focus on flexibility and community, residents today want more than just a place to hang their hats. And that’s where a hospitality mindset comes into play. As the industry of property management continues to evolve, we see it trending towards the hospitality sphere, taking more and more cues from well-performing, modern hotels. How that gets implemented across a portfolio varies—a few trends we’ve seen grow over the years include implementing mobile-first “check-ins” with virtual door keys, adding on concierge services for residents, ensuring communal spaces are stocked with complimentary items, providing onsite food and beverage options, and increasing the number of furnished units. It’s all about creating a welcoming, modern environment that elevates our residents’ daily experience.
ABOUT THE AUTHOR
Jeff Bush is President of Heritage Properties, where he works closely with the senior management in overseeing the staff and operations. He joined in 2016 as an analyst, and was tasked with identifying, inspecting, and closing new acquisition, redevelopment, and investment opportunities. Jeff graduated from Brown University and holds a certificate in Real Estate Finance from Boston University.