Benjamin Schall, president and CEO of AvalonBay Communities, Inc. (NYSE: AVB), sat down for a video interview during Nareit’s REITweek: 2025 Investor Conference in New York City June 2-5.
Schall discussed how AvalonBay is navigating a favorable multifamily housing landscape due to declining new supply, especially in suburban coastal markets where development is constrained by land and entitlement challenges. In 2025, new supply in its core regions is projected at just 1.2%, dropping to 0.8% in 2026—levels not seen in over 20 years.
The REIT is focused on three strategic pillars: strong portfolio positioning, ongoing transformation of its operating model through digitization and centralization, and growth via development. AvalonBay has $3 billion in pre-funded construction projects underway, which is expected to boost earnings starting in late 2025 through 2027. Additionally, the company raised $890 million in equity to support $1.6 billion in new development starts for 2025, aiming for development yields of 6%–6.5%.
A recent $620 million acquisition in Texas expanded AvalonBay’s suburban and Sun Belt market exposure, aligning with its strategy to grow suburban holdings to 80% and Sun Belt exposure to 25%.