There’s a lot for integrators to love about the multidwelling unit (MDU) market in 2023. Number one: the activity. MDU housing starts have climbed a mind-boggling 400% since the market meltdown in 2009 and in 2022, that rise continued with a 15% increase in MDU starts compared to 2021. Comparatively, single family starts have only continued to slow, dropping down 10% in 2021, with another 16% drop expected for 2023.
Number two: the demand. Millennials and Gen Z (the prime residents of MDUs) tend to be way more desirous of technology compared to older generations, leading to some high demand for an integrator’s touch beyond the expected security features. And that demand has already begun to form within CE pros’ businesses.
Three-quarters of dealers (76%) report on having deployed installations in luxury condos within the last 12 months, while nearly two-out-of-three dealers (60%) said they commonly work in apartment complexes. On average, the median sale to a developer/property manager amounts to about $70,833 but roughly 18% of projects have gone higher than $250,000.
Back during the CE Pro 2023 State of the Industry Study, only 26% of integrators were working on MDU projects in 2022. This potentially lucrative market had yet to be tapped by many, and it was with that backdrop in mind that we now bring you CE Pro’s first ever MDU Deep Dive Study: an exclusive collection of research and data to help CE pros map out the demands and the current state of the explosive MDU market.
Download the full 2023 CE Pro MDU Deep Dive Study HERE for FREE
The Future of Digital Lighting & Control
As a custom integrator, lighting is in demand. Effective communication, education and showcasing the value proposition of LED light fixtures in conjunction with integrative control systems are the keys to overcoming challenges and closing sales in this specialized market. Join us as we discuss the future of digital lighting and control with David Warfel from Light Can Help You and Patrick Laidlaw and Mark Moody from AiSPIRE. Register Now!While explosive growth alone has certainly fueled plenty of business opportunities for integrators, it’s the added layers of complexity that really open the market for those interested. According to our research, integrators can work with multiple decisionmakers on multiple areas of these facilities. Most commonly, integrators report working in lobbies, gyms, outdoor spaces, and gaming/theater areas.
This, in turn, leads to MDUs requiring solutions from a variety of different categories, from security to lighting to home theater all the way down to control systems. Integrators report commonly installing networking devices and access control systems, video surveillance, outdoor audio, video walls, thermostat controls, motorized shading and lighting are all on the table as projects shift from the larger more commercial areas to the individualized residential units.
In all, integrators say it’s a perfect storm of opportunities and high demand for the services of custom installation firms. Even with all the explosive growth we’ve highlighted, 39% of pros anticipate their MDU business rising “much higher” this year.
Intrigued? Don’t keep yourself in the dark. Check out the full 2023 CE Pro MDU Deep Dive Study for free.
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