Fiber-Based Broadband Raises MDU Rental Values by 8 Percent
The availability of fiber-based broadband services has emerged as a key amenity for apartment complex and condominium associations that are trying to attract new tenants.
A new FTTH Council Americas study revealed that fiber-based broadband increases rental and property values in multiple dwelling units (MDUs) by 8 percent and 2.8 percent respectively.
Citing base financial data from the National Apartment Association, the study estimates fiber can add 11 percent to net income for MDU owners and operators per average apartment unit.
The survey, conducted by RVA on behalf of FTTH Council, targeted MDU residents in U.S. and Canada where it looked at the relationship between high speed broadband on residents and properties.
Over 2,000 survey respondents were asked to determine the impact of broadband on both residents and the MDU properties to consider what discount would have to be given on an equal $300,000 condominium purchase or on $1,000 monthly rent for them to live where they would not have access to fiber. Owners said they would need an average discount of $8,628 while renters would require an $80 discount per month. Nearly 30 percent of people in the U.S. live in multifamily housing, a figure that includes renters and owners.
Interestingly, 81% of the respondents rated very high speed / reliable broadband as the single most important amenity when considering a rental, above a pool, 24-hour security monitoring, covered parking, gym access and even cable TV.
Additionally, the availability of fiber-based access increases resident satisfaction with the property itself, and appears to reduce churn, helping building owners and operators maintain high levels of occupancy and provide a quality living environment.
But even where broadband is available, people that live in MDUs also want to access to various providers, ranking choice as sixth out of 12 possible MDU amenities. This echoes the importance of an open access infrastructure, where multiple providers can compete for subscriber business while mitigating potentially prohibitive constructions expenses.
For more information, read the entire press release.