U.S. Multifamily Housing Faces Fiber Upgrade as AI Appliances Drive Gigabit Internet Demand

Written by:

Rudi Davis

Date:

16 Apr 2026

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The residential real estate industry is approaching a major infrastructure shift as artificial intelligence becomes more embedded in daily life, according to Elliot LaBreche, CEO of Vitalis Smart Communities. He says the growing use of AI-enabled appliances, smart home systems, and household robots will require gigabit symmetrical fiber connectivity, a standard most older apartment buildings cannot meet.

“Artificial intelligence and the amount of compute and bandwidth needs are going to skyrocket,” LaBreche says. As devices become more advanced, he adds, “you’re going to have to have at least one gig symmetrical speeds.”

Robots Drive Future Demand

LaBreche points to consumer robotics as a key driver of future bandwidth demand. He predicts that within five to ten years, many households will adopt humanoid robots for housekeeping or personal assistance. These devices will require far more connectivity than today’s smart home products.

“Within five to ten years, we may all have a personal robot that might be our housekeeper or assistant, and that robot is going to have the highest bandwidth requirements out of any smart technology in your home,” LaBreche says. Fiber connections delivering at least one gigabit per second will be essential.

This shift will separate properties with fiber infrastructure from those still using copper coaxial systems. Buildings without high-bandwidth connectivity may struggle to attract and retain tenants.

Artificial Intelligence Strains Existing Infrastructure

The demand for bandwidth extends beyond robotics. Refrigerators, washing machines, and other appliances are already integrating artificial intelligence, increasing the need for reliable, high-speed internet in every unit.

Apartments already contain multiple smartphones, laptops, gaming consoles, smart televisions, and internet-connected devices competing for bandwidth. As more appliances rely on constant cloud access, older copper-based systems will face increasing strain.

“Artificial intelligence is going to have to have this seamless connectivity constantly,” LaBreche says.

LaBreche expects a near future where heating, ventilation, and air conditioning systems, security cameras, lighting, kitchen appliances, and entertainment platforms all require continuous, high-capacity internet. Gigabit symmetrical speeds will become a baseline expectation rather than a premium feature.

Older Buildings Require Major Upgrades

Buildings from the 1970s and 1980s face the greatest challenge. Most rely on copper coaxial systems that cannot deliver gigabit fiber speeds without major retrofitting.

“Older vintage properties from the 70s and 80s that didn’t have fiber are going to be forced to upgrade to fiber,” LaBreche says.

He compares this shift to earlier transitions in commercial real estate, when properties moved from copper telephone lines to fiber-optic networks. Garden-style properties may face higher costs due to trenching and complex wiring requirements.

Still, LaBreche says many providers are ready to support upgrades. “There are 100-plus internet service providers (ISPs) nationally that we work with that are waiting there to help with the upgrading of the United States digital infrastructure,” he says.

New Construction Leads Industry Shift

Most new multifamily and condominium developments already include fiber infrastructure and bulk connectivity agreements. Installing fiber during construction is significantly cheaper than retrofitting existing buildings.

“For developments, almost always we’re doing bulk,” LaBreche says. “It’s a non-starter… they’re starting from there.”

This trend is widening the gap between new and older properties. Owners who delay upgrades may face tenant complaints about slow or unreliable connectivity, which can affect lease renewals and occupancy rates.

Internet Service Providers Enable Expansion

The internet service provider (ISP) market is competitive enough to support widespread fiber deployment. Regional and national providers are actively pursuing bulk agreements, often financing infrastructure in exchange for full-building access.

“The ISP wins too, because the internet service provider’s penetration now is 100%,” LaBreche says. “They’re getting every single unit.”

Vitalis Smart Communities works with more than 100 internet service providers (ISPs) to manage procurement and negotiate contracts, helping property owners transition from copper to fiber.

Outlook for Property Owners

Over the next five years, tenant expectations will shift as artificial intelligence adoption becomes more widespread. Properties without gigabit fiber may face higher vacancy rates and reduced competitiveness.

Buildings that delay upgrades risk falling behind as AI-enabled devices become standard in everyday households. Owners who invest early can avoid rushed retrofits and position their properties for long-term demand. The opportunity to act remains open, but it is narrowing.