**RCKRBX CEO Michael Broder on the Supply-Demand Mismatch in Multifamily Housing**
Although the COVID-19 pandemic is often credited with transforming renter preferences and how apartment units are designed, the shift had already begun well before 2020. According to RCKRBX CEO Michael Broder, renters’ priorities have been evolving for more than a decade.
“Back then, we started to see renters becoming less focused on amenities and more interested in their individual living spaces,” Broder explained in a recent conversation with Connect CRE. “The common sentiment was, ‘If I’m a renter, I want the investment to go into my unit rather than shared spaces.’ We’re not saying amenities aren’t important, but they weren’t driving decisions the way many in the industry assumed.”
Broder is slated to speak at Connect Apartments 2025, taking place in Los Angeles on September 11. He will join a panel discussion titled “Smarter Management, Smarter Living: A Spotlight on Proptech & Property Management,” where he will dive deeper into current trends reshaping the multifamily market.
He emphasized that the pandemic’s stay-at-home mandates made the need for high-quality personal living space even more ingrained. “People who were previously content with a one-bedroom are now looking for larger units to accommodate home offices. Others, considering starting a family, find themselves renting for significantly longer—often five to seven years—due to the widening affordability gap in homeownership.”
This has created a market pressure where individuals who would have once occupied smaller units are now seeking larger ones, while those typically moving up or out of them are choosing to stay. As a result, the available supply has not kept up with this demand evolution.
“You now have this really interesting dynamic: the people who used to live in smaller units want bigger ones, and those who would normally exit those larger units are staying and even looking to size up,” said Broder. “Given that larger units are fewer in most markets, we’re looking at a supply that’s fundamentally misaligned with where the market is growing.”
While regional differences exist, Broder noted that the demand for larger apartments is nearly universal. “When we look at our data—nationally, regionally, and down to specific submarkets—there is a consistent downturn in demand for smaller units. Instead, there’s a significantly higher demand for options like one-bedroom units with dens, two-bedroom layouts, and even larger units featuring two dens or three bedrooms.”
In addition to upsizing in floor plans, RCKRBX data shows a growing preference for longer lease terms. While annual leases remain standard, over one-third of renters now look for leases lasting two years or more. “Renters are aware they’ll be in rental housing longer,” Broder said. “When they find a unit that fits their needs into the foreseeable future, they want to lock in a rate that protects them from future rent hikes.”
These factors, Broder emphasized, are more crucial than chasing after which amenity trends are currently popular. Still, he acknowledged that amenities do matter, particularly when used strategically.
“We analyze amenities at a very granular level on the RCKRBX platform,” he said. “We can pinpoint which features—whether it’s fitness centers, outdoor space, or tech integrations—make a real difference in consideration and choice, based on location, product type, and the target renter profile.”
Connect Apartments 2025 aims to bring together the leading minds in the multifamily sector—including owners, investors, developers, brokers, and lenders—on September 11 in Los Angeles. The one-day conference serves as a strategic hub to network, exchange insights, and form deal-driving partnerships. This gathering isn’t just another industry event—it’s where real decisions are made.
For more information and registration, visit www.connectapts2025.com.
