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Outdated connectivity infrastructure can mean big losses for multifamily operators. Here’s why retrofits are trending in 2025.
By: Brad Randall, Broadband Communities
Much like a car collector sees potential in the rusted-out frame of a ’67 Mustang, multifamily owners and community planners should see opportunity in aging buildings with outdated infrastructure.
The right connectivity infrastructure and smart technology can “rev up” an aging multifamily property, building them an engine for business success.
Stunningly, some 90 percent of renters reported to NMHC last year that they either were interested in high-speed connectivity or outright wouldn’t rent from those without it.
Additionally, the right infrastructure investments can lead to big savings. In fact, almost 65 percent of multifamily properties with at least one smart device can expect between 10 and 20 percent savings, market research firm Parks Associates’ data recently revealed.
When smart devices that focus on safety and security are added to the mix, data also shows that renters are willing to pay more — to the tune of 20 to 30 percent more for features like smart doorbells, electronic locks, and security cameras.
Along with creating new revenue streams, and increasing property values, having infrastructure to allow for managed Wi-Fi can also put more money in the pockets of your residents. According to RETTC data, renters can save up to half the price on Wi-Fi with a managed service.
The data adds up to present a dilemma for owners of aging multifamily structures. It’s a dilemma that presents only one good option.
“Nothing increases the value of an asset faster and in a more measurable way than the introduction of technology,” said Sandy Jack, a multifamily advisor for Nomadix.
Proptech: Where the past can meet the present
The desire of renters for modern connectivity isn’t the only factor that should have owners of multifamily properties looking over their shoulders in 2025.
An influx of new multifamily construction will also give the squeeze to those who fail to adapt, increasing the available options to renters. In 2023 alone, roughly a million new units hit the market, according to the National Association of Home Builders.
Property technology, or proptech, can even the playing field, however.
Buildings built in the early 2000s were simply not designed for modern connectivity standards. But, much like a ’67 Mustang, there’s no reason they can’t still be on the road, so to speak.
“In the face of many economic challenges, multifamily communities have the opportunity to enhance their properties with proptech upgrades, quickly saving on operational costs and earning new revenue opportunities – all without raising rent,” said Jack.
With proper digital infrastructure installed, owners of aging multifamily properties can see other benefits as well, including early water leak detection, significant energy savings, and a decreased risk of vandalism.
Soup up the foundation
Whether a property is adding energy management, upgrading security systems or any number of IoT devices, the foundation of a community-wide Wi-Fi network will enable these upgrades for aging properties.
In fact, the industry is seeing a growing demand for community Wi-Fi.
Revenues from MDU in-unit amenity packages, along with property-provided internet, is forecasted to reach approximately $3 billion in 2025, according to Parks Associates.
If true, that would represent a substantial increase in the market since 2023.
While the opportunity and future look bright, the industry is still in a major re-adjustment period. Developers can influence the profitability of their assets by upgrading their connectivity infrastructure to better adapt to these industry changes.
Like classic music and vintage cars hold their value, older properties can too with the right investments. Don’t let your property get out of date when a few enhancements can make a major impact and multiply the value.
To learn more about how retrofits can benefit your multifamily business or community, reach out to Nomadix, the sponsor of this article.
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