Demographics and managed exposure have developers poised for multiyear success.
Until the economy says otherwise, demand for apartment units will likely outpace supply levels that developers can reasonably deliver.
Dallas-based Mill Creek Residential Trust uses a proprietary cycle-strategy forecasting system that analyzes economic indicators and other predictors across a 72-quarter history. Updating the system twice yearly, the firm uses it as a guide to project market conditions out three years. And Austin, Texasâ€“based ACC has 10 projects worth $600 million in total development, reflecting continued strong demand for student housing as the youth movement surges through its prime college years. According to CBRE, student housing saw a record-breaking year in 2016, with over $9.8 billion in transaction volume, a 75% increase over 2015 and three times the 2014 volume.