Leasing continues to be the primary area for AI for multifamily operators
AI Adoption Deepens Across Multifamily
A new divide is emerging in the multifamily industry between operators that are rebuilding their operating models around artificial intelligence (AI) and those just layering AI on top of their existing workflows, according to a new report from EliseAI.
In its second annual State of AI in Multifamily report, based on a third-party survey of 350 decision-makers and 500 residents, EliseAI found a wide range of AI deployment stages. The majority of operators, 89%, have introduced AI in some form, but only 34% have fully embedded it into daily operations—up 10% from last year. Only 14% said they are still piloting AI, and 41% cited partial deployment.
“Multifamily is moving faster on AI. The question is no longer around adoption but instead on depth of use,” said CEO and co-founder Minna Song. “The operators pulling furthest ahead aren’t just using AI here and there, they’re treating it as the core infrastructure of how they run their business. That’s where we’re seeing the biggest gains, but the data is clear that lighter implementations are having significant payoffs as well.”
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The report also noted that leasing continues to be the primary area for AI for multifamily operators. Last year, nearly two-thirds of respondents, 64%, cited leasing as the top area for AI to transform. Over half of operators, 58%, said they are running AI in leasing, which is more than any other stage in the renter journey. In addition, 86% said they are pleased with the improvement they have seen in how leasing inquiries are managed.
The return on investment also is paying off for operators, with the majority of respondents, 85%, saying they have reduced operating expenses as a result of AI.
However, operators cited a few areas that are holding them back from going deeper with AI. This includes integration challenges for 35%, legacy technology limitations for 28%, and a shortage of in-house expertise at 28%.
Over three-quarters of operators, 76%, reported using multiple AI vendors. In addition, 29% cited the integration of various property systems as one of their top day-to-day frustrations.
On the renter side, EliseAI found that the cost of failing to deploy AI is showing up in the responses. Over a third of resident respondents, 36%, noted the communication they get from management after moving in as minimal or nonexistent, while 56% rated the digital experience at their community as average at best. One-third of respondents also cited maintenance quality and responsiveness as a critical factor in choosing their property.
Source: Multifamily Executive
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