Apartment owners and operators are exploring new ways to capture and retain renters as homeownership becomes less attainable and consumer expectations tilt toward flexibility and convenience. A recent Deloitte report identifies Living-as-a-Service (LaaS) as one emerging framework that repositions multifamily housing as a subscription-based, service-oriented platform rather than a straightforward lease with limited amenities.
Under a LaaS model, residents subscribe to a bundle of housing and lifestyle services that can evolve with their needs. Instead of focusing primarily on rent plus basic amenities, owners and operators offer a menu of add-ons such as furniture packages, dog-walking, fitness classes, flexible lease terms and concierge-style support. Deloitte Consulting LLP principal and report co-author Jody Hill described the approach as emphasizing ease of consumption, short-term mobility to reflect lifestyle changes and long-term predictability of services.
The report links the LaaS concept to broader demographic and economic shifts in the U.S. rental market. Deloitte projects renter households could increase by 21.7% by 2035, rising from 46.2 million to 56.3 million. Renters are also staying in place longer, with lease renewals now making up about 57% of leasing activity. At the same time, the renter base is changing: the share of renters age 65 and older rose 30% between 2013 and 2023, and the number of high-net-worth renter households tripled from 2019 to 2023 as more households delay or forgo homeownership.
Hill noted that these trends make retention metrics more important for owners and operators, mirroring other subscription-based industries where the cost of acquiring a new customer is materially higher than retaining an existing one. For younger long-term renters, a LaaS platform might start with a basic lease and later expand to include additional services, larger units or transfers within an owner’s multifamily portfolio as life events such as marriage, children or career moves occur. Older renters approaching retirement could favor predictable payments, downsizing options and services that support increased travel.
Remote workers and more nomadic tenants are another target segment, potentially using LaaS to move between units or cities within a single multifamily portfolio without managing multiple providers. For renters, the value proposition centers on flexibility, convenience and consolidation of lifestyle services through one subscription interface. For owners and operators, Deloitte suggests that recurring service revenue, stronger tenant satisfaction and reduced turnover and vacancy could support higher profit margins.
Hill emphasized that LaaS is still an emerging concept that Deloitte has been testing with commercial real estate clients over the past year. Potential hurdles include clearly communicating long-term value to residents, maintaining transparency so renters subscribe only to services they want, and adapting operational metrics to a subscription-driven business model. Implementing LaaS would require meaningful upfront planning, technology infrastructure and coordination with service partners.
Even with these challenges, Deloitte argues that early adopters may benefit from rising rental demand and shifting consumer expectations around mobility and subscriptions. The report concludes that even modest uptake of bundled services across large multifamily portfolios could create new revenue streams while improving tenant retention, positioning commercial real estate companies that pursue LaaS to better align with evolving renter preferences.
