A new study from Parks Associates shows that nearly one in five multifamily housing residents with home internet have access to gigabit or faster download speeds.
The study — included in the whitepaper “A Guide to Connectivity Innovations in Multifamily Housing” and completed in partnership with Cox Communities — examines different internet connectivity options available for multifamily properties, including legacy bulk and retail service, managed Wi-Fi, and instant activation.
According to the whitepaper, customer satisfaction with home internet is, unsurprisingly, highest among those with high speeds and lowest among those with low speeds. Gigabit — and even multigigabit — internet will be increasingly important as an amenity to attract and retain residents in the coming years, the research firm said.
Among the Parks Associates’ findings in the multifamily housing internet study:
- 10-12% of multifamily housing residents report having a bulk internet plan, defined as either paying an additional amenity fee to a property or receiving internet for free (or as part of rent).
- 80-82% report having a retail internet service, defined as directly paying an internet service provider.
- The average apartment renter pays $79 per month for their retail home internet service.
- As of the end of the first quarter, the net promoter score (NPS) for apartments overall is critically low, at -25. Properties without bulk internet on average have a NPS of -28, while adding bulk internet boosts this by 26 points.
- NPS for apartments turns positive once bulk internet is combined with smart amenities and smart security features.
- Condos have a higher relative NPS of 12, which increases several points when bulk internet is added.
“Internet and connectivity create the foundation for highly valuable resident amenities and modern operational tools,” Kristen Hanich, Parks Associates director of research, said in a prepared statement about the multifamily housing internet study.
“The owners and operators of multifamily properties must consider the implications of deploying connectivity to new construction versus existing buildings and evaluate their goals, the costs of deployment, and the potential payoff.”
Earlier research from Xfinity Communities and Parks Associates suggests that multi-dwelling units (MDUs) more than ten years old face greater Wi-Fi and other types of connectivity challenges than those that are newer.
