FTTH Council releases study showing access to fiber-delivered Internet raises rental values by up to 8 percent, and purchase prices of condos by 2.8 percent
During today’s FTTH Connect conference, the Fiber to the Home (FTTH) Council Americas released a study finding fiber broadband increases rental and property values in multiple dwelling units (MDUs) by 8 percent and 2.8 percent respectively. Higher rental and sales values mean better bottom lines for MDU owners and operators. Using 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.
Using a survey of MDU residents in the U.S. and Canada, study author RVA, LLC investigated the relationship between ultra-high speed, reliable broadband on both residents and properties. Respondents were asked to consider what discount would have to be given on a otherwise equal $300,000 condominium purchase or on $1,000 monthly rent for them to live where they would not have access to fiber. The results showed owners would need an average discount of $8,628 while renters would require an $80 discount per month. Almost 30 percent of people in the US live in multifamily housing, both renters and owners.
“Today’s findings add to the growing body of evidence that fiber is a win for communities, for consumers and for property owners,” said FTTH Council President and CEO Heather Burnett Gold, “This study is another tool network providers can use in their discussions with MDU owners and operators as they seek to deploy fiber, meaning faster and more numerous deployments throughout North America.”
“The benefits of all-fiber, ultra-fast broadband networks are clear to people, so much so that it influences where they will live,” said FTTH Council Board Chairman Mike Hill, “Today’s findings further validate our mission as an organization: to promote investment in and adoption of fiber services throughout the country. We’re looking forward to working with more providers, communities and leaders to make that happen.”
Additional findings from the survey include:
- Fast and reliable broadband is now rated the single most important amenity for MDU residents, more important than a pool, 24-hour security monitoring, covered parking, gym access and even cable TV.
- Fiber 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.
- There is evidence that residents in MDUs with better broadband also spread the word, reducing customer acquisition costs for these MDU properties.
- Beyond just having access to ultra-high-speed broadband, people who live in MDUs want access to multiple providers, ranking provider choice as 6th out of 12 possible MDU amenities.
Survey speed tests and questions about service needs, show fiber-based broadband in MDUs is significantly more reliable and offers greater speeds than other technologies.
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