Apartment construction starts could end the year down 50% from 2022 levels due to rising costs for debt and construction — making it more challenging than ever for new projects to pencil out.
And yet … there’s still ample demand for workforce and attainable housing — from investors and from renters — that can deliver new inventory at rents well below traditional “luxury” new development. Furthermore, these projects are critical for meeting demand in what is often called the “missing middle.”
While rising interest rates and high construction costs impact every developer, some continue to press forward with creative solutions for filling these gaps in U.S. apartment supply. Join us in the final edition of Voices for 2023 as RealPage® Chief Economist Jay Parsons interviews apartment development executives with different strategies for supply success.
Executive guests including Barrett Linburg of Texas-based boutique developer Savoy Equity Partners and Steven Campisi of Florida-based NMHC Top 25 developer Hillpointe weigh in with winning insights and approaches for seizing opportunities to support more renters with moderate-income housing:
- How is workforce / attainable housing different from traditional “luxury” development?
- What subsidies and incentives make these specific apartment projects more viable?
- What can developers do to reduce construction costs for attainable housing projects?
- How can workforce / attainable housing be a win-win for investors and renters?
Barrett Linburg is a co-founder of Dallas-based Savoy Equity Partners, which specializes in multifamily real estate investments. With 17 years in commercial real estate, Barrett has expertise in sourcing and capitalizing multifamily projects in all parts of a real estate cycle. Since 2012, he has been involved in the ownership, development and rehabilitation of several thousand multifamily units. His niche is navigating transactions with intricate structures, notably opportunity zones, historic tax credits and mixed-income restrictions. His background as a mortgage broker further solidifies his grasp on the financial nuances of real estate, having arranged debt financing for various property types. Barrett earned both his BBA and MBA from SMU Cox School of Business, focusing on Real Estate and Finance. Outside of his professional life, he cherishes time with his wife, Heather, and their daughters, Natalie and Abigail, and he has a passion for golf, hiking, scuba diving and in-depth discussions on Opportunity Zones.
Steven Campisi, CFA
Co-Founder & Managing Partner, HillpointeAs a co-founder and co-manager of Hillpointe, Steven Campisi heads the firm’s capital markets and investor relations efforts and is jointly responsible for the firm’s new project origination, pre-development, project underwriting and asset management activities. Prior to co-founding Hillpointe, Steven co-founded and served as Managing Partner of Greenstalk Capital, a real estate-focused private equity investment firm. While at Greenstalk, Steven led the firm’s transaction origination, capital markets and underwriting functions. Prior to Greenstalk, Steven served as an Equity Research Analyst at Robert W. Baird, an employee-owned wealth management, capital markets, asset management and private equity firm, and earlier as an analyst at Bay Head Capital, a high-frequency trading incubator for investment management firms. Steven holds the Chartered Financial Analyst designation. He received an M.S. in International Business and a B.S. in Finance from the University of Florida.
Jay Parsons
SVP & Chief Economist, RealPage, Inc.Jay Parsons serves as Senior Vice President, Chief Economist for RealPage, leading the Economist and Industry Principal teams to provide deep insights on market trends and consumer behaviors. He is a frequent author and industry speaker on topics affecting multifamily apartments and single-family rentals, including rental housing investment and asset management strategy, rental housing policy issues, risk mitigation and property management.
Jay has been cited in The Wall Street Journal, Bloomberg, The Financial Times, The Economist, and The New York Times, and he has appeared on CNBC and BloombergTV. His commentaries have been published by Barron's, the Pension Real Estate Association, the Mortgage Bankers Association, the National Apartment Association, American Banker and GlobeSt.
