Multifamily properties have maintained stable occupancy so far in 2025, with RealPage reporting a rate of 95.2% as of the first quarter. That doesn’t tell the whole story. Behind the scenes, property owners and managers are navigating a complex landscape of rising operational costs, changing tenant preferences, and growing cybersecurity vulnerabilities. Innovative solutions are emerging as the industry adapts to these new realities.
Industry experts Mendowa Martin, SVP and head of operations, and Lela Cirjakovic, managing director of multifamily property management at JLL, note that these key trends will drive a need to protect net operating income, and may need a change in leasing strategies.
Rising costs call for operational innovation
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Surging operational expenses due to higher interest rates and inflation have pressured net operating income. To combat that trend, Cirjakovic advocates a “back to basics” approach.
Insurance—a major cost center—has seen premiums rise by an average of 45% between 2023 and 2024, according to the Federal Reserve Bank of Minneapolis, with increases even higher in disaster-prone areas.
“Reviewing loss history and identifying root causes of issues can help control insurance costs,” Cirjakovic advises, recommending proactive risk mitigation, especially for potential water damage, and enforcing renters’ insurance requirements. Owners should also ensure their coverage aligns with their loss history to reduce out of pocket expenses and financial strain.
Mixed-use developments reshape urban living
As people are increasingly seeking "live-work-play" environments, valuing convenience, reduced commute times, and easy access to amenities, developers are taking note.
“We’re seeing a departure from the siloed approach to mixed-use development that was common a decade ago,” says Martin. “Developers are shifting towards larger mixed-use developments focused on shaping urban landscapes and communities.”
Indeed, mixed-use properties are increasing. Between 2010 and 2020, mixed use developments account for 50% of new commercial and multifamily development; today, 60% of new development is mixed-use.
These developments now encompass entire districts built around transportation hubs, cultural venues, green spaces, and entertainment. The Plaza at Coral Gables in Florida and Avalon in Alpharetta, Georgia, exemplify this trend. As a result, leasing strategies have evolved alongside this development, explains Martin. “We’re no longer positioning multifamily properties as just housing anymore,” she says. “We’re really looking at them as solutions for lifestyle.”
This requires having a good understanding of each property’s demographics and what amenities will appeal to them.
Technology transformation
As technology continues to advance, automation and artificial intelligence now address core operational challenges through AI-driven predictive maintenance and energy management systems. This can enhance operational efficiency and improve residents’ quality of life by preventing service disruptions.
However, more technology introduces cybersecurity vulnerabilities. Martin advocates staff education on cybersecurity best practices and recommends implementing multi-factor authentication, regular security audits, and secure data management practices.
Community-building amenities
While reliable high-speed WiFi has become essential—"I don't look at it as an amenity, it is a commodity," says Cirjakovic— wellness-focused amenities, multifunctional spaces for remote work, and pet accommodations remain priorities.
Community engagement through programming has emerged as a crucial differentiator. “When you allow for connections, residents make friendships that encourage longevity and stickiness,” Martin explains. “It’s one of the best amenities we can offer.”
As multifamily housing continues evolving through 2025, properties successfully integrating these trends while managing costs effectively will likely see the greatest resident satisfaction and retention rates.
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