October 25, 2022 |
Updated November 1, 2022
Apartment homes in mixed-use buildings have grown exponentially in 10 years, resulting in a post-pandemic world where residents can live, work and play under one roof.
Apartment home numbers in mixed-use buildings (live-work-play [LWP] buildings) have grown substantially during the past
10 years. A recent report from RentCafe shows these apartments have increased from 10,000 completions per year to more than 43,000 completions per year in just 10 years. Despite the growth, apartments in live-work-play communities made up only 10% of the market in 2021, down from 13% in 2020.
There are roughly 580,000 apartments in mixed-use buildings in the U.S., and Manhattan is home to nearly 90,000. Some of this lifestyle demand is being championed by the younger workforce. “Live, work and have fun without leaving your building is most appealing to the largest renting generation—Millennials, especially the younger half of this age-group of renters. In fact, according to Census data, the zip codes with live-work-play buildings are home to high shares of young Millennials, who account for an average of 40% of the area population,” according to the report.
Brooklyn is second with 26,100, followed by Washington, D.C., with 20,500; Chicago at 18,700; and Los Angeles with 18,600. Since 2012, D.C. has seen the most LWP apartment completions (17,300), with Manhattan and Los Angeles each at 15,100.
As far as the future goes, Los Angeles has the most LWP apartments in development at 17,600. Miami is second with 15,900 and Chicago is third with 15,800.