by Jami Radant
September 9, 2025 8:00 am
Image: Ross; Adobe Stock/Crittenden Report illustration
We asked leaders in the multifamily industry to share their predictions for new
development next year. Here is what they had to say:
Tim Harris, SVP, Rosewood Property Company
Texas construction starts are at their lowest levels since before the pandemic. The rise
in interest rates in 2023 made development screech to a halt. However, many affordable
projects are moving forward due to their lower costs and rental rates.
The most active developers are focused on affordability or are experienced sponsors
with a strong track record in supply-constrained submarkets. Projects with great
locations, sponsorship, favorable cost basis and limited future competition will be the
first to break ground.
High-cost projects, such as high rises, are proving difficult to get off the ground.
Investors and developers are favoring smaller projects, which allow them to spread risk
across two or three properties rather than committing to a single large investment.
Additionally, developers are avoiding far-out suburbs, where builds happen fast and
rental rates are more vulnerable to decline.
At Rosewood Property Company, we focus on luxury developments in high-growth
areas with limited supply competition. Our builds are strategically located near
employment centers, in desirable areas. The jobs in those areas support rental rates,
and most people in our markets do not want a long commute.