Earlier this month, I attended the National Multifamily Housing Council Annual Meeting and conference in San Diego. Among the dozens of presentations and insights shared during the event, there was one common theme: technology.
From AI to EVs to 3D printing, the multifamily industry is experiencing a tech-driven transformation unlike we’ve ever seen.
While some in the industry have been somewhat cautious of adapting new technology too quickly, concerned about the unknowns, I tend to take a more optimistic view of the possibilities in front of us. I found the future-facing ideas around technology presented at the NMHC conference exciting and am sharing two of my favorites below.
Brad Lutz, managing principal in the Chicago office of Baker Barrios Architects.
Applying AI
How might you design your multifamily property differently if you could predict the way residents would live in it? That was one of the many ideas that inspired me while listening to the engaging sessions on the topic of artificial intelligence.
This incredible technology is about so much more than chat bots. The data it can provide has the potential to inform decisions and operations throughout the lifetime of a multifamily project: site selection, programming and design, leasing, resident retention, property management and so much more – ultimately boosting NOI and ROI by saving significant time and money.
From an architectural perspective, I’ve seen how AI can save time and money in the design process alone, creating schematic visuals in a fraction of the time it previously took. It allows us to trial different architectural scenarios with our clients in seconds, rather than the hours or even days it used to take to create multiple rough schemes.
Another takeaway is understanding how imperative it is to incorporate technology on the front end of a project, rather than try to catch up and retrofit a property to incorporate it later. Even if a certain tech-forward element won’t be immediately implemented, having the necessary components or infrastructure incorporated in the design from the start allows the project to be ready for the future.
The NMHC Keynote Speaker Peter Diamandis, founder and executive chairman of the XPRIZE Foundation, said every company should have a Chief AI Officer, and I agree that this will be an essential role to leverage all this new technology in any business. At Baker Barrios, our take on the role is our Chief Creative Officer, Wayne Dunkelberger, who oversees our design-opps team.
We’ve invested years into research and testing of various AI and augmented-reality software and have developed a proprietary formula for utilizing tech throughout our architectural practice to yield more advanced and more successful project outcomes. As Wayne often notes, AI is simply a tool and is only as useful as the person operating it.
Given the prevalence of AI throughout society, it does make sense to have people on your team who know how to make the most of this tool, especially if it can generate more successful solutions and project results.
Tech and our EI (Environmental Impact)
The built environment is responsible for 40% of carbon emissions, and that same built environment is on track to overtake 18 million acres of farmland by 2040, according to American Farmland Trust. With the multifamily industry accounting for 34% of all new residential construction in 2022, we have a responsibility to address our impact on the environment, leading by example with the approaches and systems we implement. Again, technology is the key.
One of the most notable eco trends is the switch away from coal and oil to electric. The city of Chicago recently joined nearly 100 other cities and counties in the U.S. (mostly on the East and West coasts) restricting gas appliances and heating in new construction. These decarbonization efforts are here to stay and will likely only increase.
In Illinois, all new construction homes and multifamily buildings will also be required to provide EV-capable parking spaces (starting at 40% of the parking for large multifamily projects, with that percentage increasing over the next 10 years to 70%) – the first state in the nation with such a law on the books.
My firm frequently counsels clients to not simply abide by minimum requirements but to future-proof their developments by taking efforts to the next level whenever possible, whether it’s a reduced parking/alternative transit program, or use of advanced and efficient systems for building electrical and mechanical systems. Including this technology during the initial build is far cheaper than playing “catch up” down the road.
Technology is also the future for a practice that’s been integral to human survival since the dawn of civilization: farming. And the multifamily industry is an ideal partner – and can even showcase this as a future-forward sustainable amenity!
New ways of growing our food, such as hydroponics and aquaponics, have led to a rise in vertical farming (pun intended!). While green roofs and urban rooftop farms have become more mainstream, the possibility of incorporating farmland into the vertical spaces on multifamily buildings are still mainly untapped in our country – though increasingly popular in Europe. There is an incredible opportunity for developers to be on the forefront of this in the U.S., and as an architect, I’m incredibly excited by the prospect.
To once again quote from Peter Diamandis’s keynote speech, “The day before something is a breakthrough, it’s a crazy idea.”
We are living in truly groundbreaking times. The multifamily sector has long been a leader in innovation for the real estate industry, being the first to take those once “crazy ideas” and literally build them. I eagerly anticipate what lies ahead for multifamily.
Brad Lutz is managing principal in the Chicago office of Baker Barrios Architects and practice leader of the multifamily/residential practice.
