Internet as Infrastructure: Why Connectivity Now Belongs in Your CapEx Plan

The past few years have made one fact clear in U.S. multifamily housing: reliable internet is no longer a luxury. Renters expect to stream movies, work remotely, control smart thermostats and pay rent online without ever thinking about network quality. Surveys by the National Multifamily Housing Council (NMHC) and Grace Hill show that 86 percent of renters rate high‑speed internet as very important or absolutely essential, while other industry research reports that around 90 percent of respondents would not rent an apartment without reliable internet access. Another study on managed Wi‑Fi found that 85 percent of renters consider reliable connectivity a top priority when choosing a home. These numbers illustrate a major shift: connectivity has moved from a marketing amenity to a core utility. In this article, we explore why property‑wide networks should be treated as infrastructure and budgeted as capital investments, not discretionary services, and how this approach can enhance resident satisfaction and long‑term asset value.

The Rise of Connectivity in Multifamily Living

From Amenity to Necessity

Ten years ago, internet service was an afterthought in many multifamily communities. Residents signed individual contracts with retail providers, and inconsistent wiring produced dead zones and poor speeds. Today, that model falls short of renter expectations. The 2024 NMHC/Grace Hill Renter Preferences Survey found that high‑speed internet is a top‑three amenity for 92 percent of renters - a higher ranking than amenities such as pools or fitness centers. The NMHC‑Kingsley survey reported that seven in ten renters want community‑wide connectivity and more than 90 percent want high‑speed internet, with nearly three‑quarters wanting it pre‑installed on move‑in day. Separate research by Multifamily & Affordable Housing Business confirms that 90 percent of renters would not rent without high‑speed internet, and half of respondents say a positive Wi‑Fi experience during a property tour influences their decision to lease. These converging data points underscore a fundamental change: connectivity is now a prerequisite for occupancy.

Remote Work and Smart‑Home Demand

Remote and hybrid work have become standard for many residents; more than half of U.S. workers were still working from home in early 2022. A typical household now hosts over 20 connected devices, and streaming services and smart‑home gadgets have largely supplanted cable and analog appliances. These trends demand robust, property‑wide connectivity across units and amenity areas.

Connectivity as a Utility

Industry commentary now refers to internet access as the “fourth utility” - a service that renters view on par with water and electricity. When internet fails, work, entertainment and smart devices stop functioning, and residents blame the community rather than the retail provider. This dependency explains why property‑wide networks produce competitive advantage. Yet only about 16 percent of renters currently live in communities with managed Wi‑Fi throughout the property. The gap between expectation and availability presents an opportunity for owners to differentiate their communities by delivering curb‑to‑couch connectivity.

Connectivity as Core Infrastructure

Investment Trends and Policy Support

Delivering robust connectivity requires capital similar to other building systems. According to the USTelecom Broadband Capex Report, U.S. broadband providers invested $94.7 billion in communications infrastructure in 2023, and cumulative investment since 1996 approaches $2.2 trillion. Public programs complement these private outlays: the Broadband Equity, Access and Deployment (BEAD) Program provides $42.5 billion to expand high‑speed access, with funding available for multifamily buildings and low‑income communities. Many states also offer grants or loans, often estimated at $5–$20 per unit, and require broadband connectivity to qualify for low‑income housing tax credits. Together, these investments underscore that digital access is a public necessity and should be budgeted like roofs and HVAC systems.

From Service to CapEx

Although internet historically appeared as an operating expense, owning a property‑wide network converts it into a capital asset with clear payback. Education SuperHighway estimates that upgrading to a managed network costs $300–$500 per unit. A Propmodo case study illustrates the returns: a 150‑unit building offering managed internet can generate substantial additional net operating income and recover investment within five to 18 months. Portfolio deals amplify savings - per‑unit costs can fall by 8–15 percent - and eliminate installation fees, giving owners greater control over service quality and customer experience. In short, connectivity becomes a capital project with a defined return rather than a recurring expense.

Resident Satisfaction and Occupancy

Reliable connectivity has measurable effects on occupancy and renewal. Multifamily & Affordable Housing Business reports that 87 percent of renters want internet service to be live on move‑in day. The same survey finds that 90 percent would not lease without high‑speed internet and that a positive on‑site Wi‑Fi experience influences leasing decisions. The NMHC/Grace Hill survey similarly identifies internet as a key determinant of renewal intent. Failing to deliver consistent service risks lost leases and reputational damage, while investing in infrastructure supports resident satisfaction and long‑term occupancy.

Operational and Competitive Advantages of Managed Networks

Smart Building Integration and Operations

Managed Wi‑Fi networks do more than provide fast speeds; they enable the next generation of smart‑building features. Curb‑to‑couch connectivity lets residents roam from units to amenity spaces without logging into multiple networks. Strong bandwidth supports smart appliances, access‑control systems, building‑wide security cameras and electric‑vehicle charging. Property owners implementing managed Wi‑Fi note that this seamless experience is as important as ROI when deciding to invest.

Connected devices also streamline operations. Water sensors detect leaks and send alerts to maintenance teams, reducing emergency repairs and insurance claims. Smart thermostats and LED lighting can lower energy costs while giving residents remote control. Digital leasing platforms allow residents to sign leases, submit maintenance requests and pay rent online; surveys of property managers suggest that integrating such technologies improves revenue growth and operational efficiency. In short, a robust network becomes the backbone for both resident experience and management operations.

Revenue and Portfolio Economics

Managed networks offer meaningful opportunities to grow net operating income. Owners typically charge technology fees or include connectivity in rent at roughly half the price of standard retail internet and still achieve healthy margins. Volume discounts and revenue‑sharing agreements can reduce per‑unit costs by 15–25 percent, converting internet service into a profit centre. Bundling thousands of units unlocks even greater discounts, although older properties may require wiring upgrades or face contractual constraints. Even so, break‑even periods often fall under two years, and managed networks can provide steady NOI uplift without imposing hidden fees or installation charges.

Preparing for CapEx Planning

Assessing Your Portfolio

Treating internet as infrastructure means evaluating wiring and coverage alongside roofs and HVAC systems. Properties built before the mid‑2010s may lack modern wiring, and dead zones or resident complaints can signal the need for upgrades. Scale matters: bundles of thousands of units yield significant savings, whereas smaller portfolios may prefer property‑specific contracts.

Funding and ROI Considerations

The federal BEAD program and state initiatives can help offset capital costs. Grants and low‑interest loans are available for upgrading networks in multifamily housing, and some states provide additional incentives for low‑income properties. Owners should also examine whether capital reserves earmarked for mechanical systems can be reallocated to digital infrastructure. Installation costs estimated at $300–$500 per unit can often be capitalised and depreciated. Payback typically occurs within one to two years through technology fees, modest rent premiums or revenue‑sharing agreements. Fiber backbones, while more expensive upfront than copper or coax, offer future‑proof capacity and support symmetrical gigabit speeds; selecting the right technology reduces long‑term replacement risk.

Conclusion

High‑speed internet has become indispensable to modern multifamily life. Renter surveys show that reliable connectivity ranks above traditional amenities and that many prospective residents will not sign a lease without it. The increasing number of connected devices, rise of remote work and adoption of smart‑home features have transformed internet service into a core utility. National broadband investments and federal programs further underscore that connectivity is infrastructure, not an optional amenity.

For owners and asset managers, integrating connectivity into capital plans is both a defensive move and an opportunity. Upgrading to managed Wi‑Fi can cost $300–$500 per unit but paybacks often occur within a couple of years through technology fees and rent premiums. Residents benefit from seamless curb‑to‑couch experiences and smart‑home functionality, while operators gain operational efficiencies and an uplift in net operating income. Portfolio‑level deals deliver additional cost savings and consistency.

In the coming decade, communities that treat connectivity like any other piece of critical infrastructure, and planning, funding and maintaining it, will be best positioned to attract and retain residents, optimise operations and protect asset value. The question is no longer whether to invest in property‑wide internet, but how soon and how strategically you can make it part of your CapEx plan.