When it comes to property value, fiber internet—a highly sought-after broadband solution—can make a significant difference, whether fiber-to-the-home or fiber-to-the-unit. Fast connectivity is now an essential requirement for everyday life for most Americans. Whether working, playing games, or streaming, U.S. consumers expect high-speed broadband at home.
According to a 2023 consumer study by Fiber Broadband Association (FBA) and RVA LLC Market Research and Consulting, shows that fiber-optic internet is the preferred connectivity technology for almost two-thirds of all internet users, outpacing both cable and wireless.
Not having fiber internet will negatively impact property value, according to additional insights from the same study by FBA and RVA showing that, on average, U.S. consumers would require a 4.9% reduction in price for a non-fiber-connected house, a 3.2% discount for a non-fiber condo, and 12.8% off for a non-fiber rental apartment.
Additionally, fiber internet is the second most important feature buyers and renters look for in multifamily communities, according to the study:
- Laundry room / washer and dryer in unit
- High-speed fiber broadband
- Hardwood floors
- Granite kitchens
A 2023 study on Multifamily Living Trends Report by Allegion, found residents of multifamily communities prefer free WiFi as the number one amenity over affordability and proximity to work and school. And 45 percent said free WiFi was a must-have amenity at their future residency. (Read more about rental income opportunities in Part 2.)
Why is fiber in-demand?
Multifamily community owners and management firms, as well as homeowners understand fiber’s value as a long-term, future-proofed solution. Consumers themselves are increasingly opting for fiber internet because of its ultra-fast speeds and reliability.
In fact, consumers who’ve tried other communications technologies opt for fiber internet as it becomes available in their areas. Of the 17% of consumers who switched internet providers over the past 24 months, fiber had a net gain of 15 market share points, whereas cable had a loss of 14 share points, as found by the FBA’s report, Fiber is Preferred by Nearly Two-Thirds of U.S. Consumers According to New Fiber Broadband Association Research. This is true even though cable services are two-times more available than fiber throughout most regions of the United States.
The reality is that not all internet connectivity technologies are created equal. BroadbandNow compares DSL, cable and fiber upload and download speed ranges. These speeds are non-symmetrical and do have an upload speed range of 20 Mbps for DSL and 50 Mbps for Cable. Yet no upload speed reaching 1Gig.
As Zachary Ebner, senior manager of product at Quantum Fiber, explains, “Quantum Fiber offers residents the fast, reliable, and symmetrical internet speeds essential to their lifestyle on our global fiber network. The term ‘fiber is future-proof’ can be seen in action today as we continue to enable residents to access even more bandwidth – up to 8 Gig in select locations. And, our fiber network is on the leading edge of what equipment and technology is capable of in the residential space today, and ready for the fast-approaching advancements of tomorrow.”
The latest outlook for the United States’ growing fiber network
Fiber internet deployments are on a sharp rise as the U.S. government, internet service providers (ISPs), and local cities and jurisdictions are determined to bring fiber to homes and offices across the country. Savvy homeowners and community builders will take note if not clued in already.
- In December 2023, the FBA shared the highlights of its 2023 North America Fiber Provider Survey, which found that the previous year had set a new record for the fastest annual fiber-to-the-home growth in history.
- In the United States alone, this represented an increase of 13%, or 78 million homes.
- Billions of dollars are being spent on residential fiber networks.
- The Broadband Equity, Access, and Deployment (BEAD) program is designed to upgrade “unserved” households and businesses with connectivity speeds of at least 100 Mbps.
- A paper published in 2023 by the SSRN Journal pointed out that the U.S. government has recently been pushing a fiber-first infrastructure policy across all 50 states, devoting $42.45 billion to that effort.
- This move to fiber will inevitably increase the value of homes, according to the SSRN Journal paper.
- Estimates show that, nationally, the aggregate increase in housing value from fiber will add up to more than $36 billion by the end of 2024.
Fiber is a gift that keeps on giving at rental communities. To find out how installing fiber-optic broadband can specifically improve community property rental income, read Part 2.
Check out these related articles:
· Master-planned communities can dream bigger with fiber multigigabit capabilities.
· Learn how WiFi 7 is a leap into next-gen community living.
Quantum Fiber® Connected Communities provides customized fiber solutions for apartments and communities.
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