Brace Yourself for a Surge of Multifamily Development
AMLI CEO Greg Mutz (below) and Waterton Associates CEO David Schwartz say they’re expecting to see a surge in multifamily development over the next year, as developers hustle to get ahead of the new housing ordinance, which takes effect in less than six months.
The two developers, who spoke before a crowd of 425 this morning at Bisnow’s 6th Annual Multifamily Summit at the JW Marriott, also expect to see a rise in demand for existing Class-B and C housing stock. But in the long run, they worry it could slow development in the city, and even have the effect of making housing prices less affordable overall.
Greg and David joined Habitat Co president Matthew Fiascone, Laramar Group CEO Jeff Elowe, Marquette Cos CEO Nick Ryan, and Cornerstone Real Estate Advisors managing director Pam Boneham on the development panel. The experts agreed Chicago is seeing a big surge in interest in luxury, new construction buildings with big amenities that cater to renters with six-figure salaries. But it could be hard to continue pushing rents up in the future. “The next five years aren’t going to be as good as the previous five years,” Matt cautions, especially as the city and state grapple with budget and pension woes, but those years have still been very good for the housing market. Stay tuned Monday for full coverage of Bisnow's 6th Annual Multifamily Summit.