Dive Brief:
- The development of new multifamily units as part of mixed-use “live-work-play” properties, which combine residential, office and commercial/entertainment uses at one site, has quadrupled in the past decade, according to data from Yardi Matrix. New unit completions in this category per year have risen from 10,000 in 2012 to 43,700 in 2021.
- Manhattan has the most multifamily units in live-work-play buildings out of all U.S. cities by far at 89,500. Neighboring Brooklyn comes in second with 26,100.
- Over the last decade Washington, D.C., has built more live-work-play units than any other city, with 17,300 units completed between 2012 and 2021. These units made up 38% of apartment stock completed during this time.
Dive Insight:
The COVID-19 outbreak enhanced the popularity and growth of live-work-play buildings, up to a high of 49,100 new units completed during the height of the pandemic in 2020. This building style appeals to renters because it offers daily activities — living, working and entertaining — under one roof, according to report author Andrea Neculae.
Completions did fall back in 2021 due to “supply chain shortages and price increases of construction materials and labor,” especially in urban cores, according to Doug Ressler, manager of business intelligence at Yardi Matrix. However, Ressler does expect a rebound in completions based on demand in 2022.
At the national level, the ratio between living and work-play space in these developments is 70%-30%, according to Yardi data. This varies by geographic area; in Los Angeles, for instance, live-work-play buildings are 89% residential on average.
Los Angeles leads the nation in upcoming live-work-play developments, with a pipeline of 17,600 new units. Miami, Chicago and Washington, D.C., are next on the list.
