Multifamily developers started 381,000 units in 2016. High volume? Sure, but oversupply? Hardly, say Top 25 companies that eye the continuation of macroeconomic trends of population growth, job creation, and a multifamily-friendly rent-to-own ratio that could power the development sector for several years to come.
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, Texas–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.
Until the economy says otherwise, demand for apartment units will likely outpace supply levels that developers can reasonably deliver.
| Rank (2017) | Rank (2016) | Company Name (P) = Public |
2016 Units Started | % Change 2015 to 2016 | Corporate Officer |
HQ City |
HQ State |
|---|---|---|---|---|---|---|---|
| 1 | 5 | Greystar Real Estate Partners | 7673 | 63% | Robert A. Faith | Charleston | SC |
| 2 | 1 | Alliance Residential Co. | 7104 | -9% | Bruce Ward and V. Jay Hiemenz | Phoenix | AZ |
| 3 | 6 | LMC, a Lennar company | 6244 | 36% | Todd Farrell | Charlotte | NC |
| 4 | 2 | Mill Creek Residential Trust | 5081 | -23% | Charles R. Brindell and William C. MacDonald | Dallas | TX |
| 5 | 4 | Trammell Crow Residential | 4517 | -7% | Kenneth J. Valach | Dallas | TX |
| 6 | 9 | Lincoln Property Co. | 4343 | 26% | Tim Byrne | Dallas | TX |
| 7 | 11 | The NRP Group | 3720 | 108% | J. David Heller | Cleveland | OH |
| 8 | 3 | Wood Partners | 3468 | -38% | Joe Keough | Atlanta | GA |
| 9 | 13 | The Michaels Organization | 3443 | 20% | John J. O'Donnell | Marlton | NJ |
| 10 | Continental Properties Co. | 3175 | 10% | James Schloemer | Menomonee Falls | WI | |
| 11 | 12 | Hanover Co. | 3102 | 3% | John H. Nash | Houston | TX |
| 12 | Fairfield Residential Co. | 3007 | 96% | Gregory R. Pinkalla | San Diego | CA | |
| 13 | 22 | Woodfield Development | 2937 | 65% | Greg Bonifield | Mount Pleasant | SC |
| 14 | 7 | AvalonBay Communities (P) | 2732 | -27% | Timothy J. Naughton | Arlington | VA |
| 15 | American Campus Communities | 2699 | 114% | Bill Bayless | Austin | TX | |
| 16 | 20 | Crescent Communities | 2389 | 28% | Brian Natwick | Charlotte | NC |
| 17 | Wermers Cos. | 2150 | 34% | Thomas Wermers and Jeff Bunker | San Diego | CA | |
| 18 | Miller-Valentine Group | 2101 | 401% | David Liette | Cincinnati | OH | |
| 19 | 8 | Holland Residential | 2053 | -42% | Clyde Holland | Vancouver | WA |
| 20 | The Bainbridge Cos. | 2032 | 202% | Richard Schechter | Wellington | FL | |
| 21 | 24 | The Dinerstein Cos. | 1966 | 12% | Brian Dinerstein | Houston | TX |
| 22 | Fore Property Co. | 1959 | 60% | Jonathan Fore | Las Vegas | NV | |
| 23 | 10 | Forest City Residential Group (P) | 1808 | -46% | Ronald A. Ratner | Cleveland | OH |
| 24 | Billingsley Co. | 1798 | 232% | Lucy Billingsley | Dallas | TX | |
| 25 | Related Development | 1788 | 9% | Steve Patterson | Miami | FL |
