Ben Schall, president and CEO at AvalonBay Communities, Inc. (NYSE: AVB), sat down for a video interview during Nareit’s REITworld: 2025 Annual Conference in Dallas on December 8-11.
Schall outlined how AvalonBay is using development as a core portfolio-shaping tool, emphasizing the company’s dual role as both a long-term owner and active developer.
“We really can build the product that we think is where demand is headed,” he said, noting a growing focus on suburban, lower-density communities that align with evolving renter preferences.
Supported by what Schall described as “one of the strongest balance sheets in the industry,” AvalonBay is moving forward with approximately $1.7 billion in new development starts this year, even as others pull back. The company raised $890 million in equity capital in 2024 and is deploying it into projects with development yields in the low-to-mid 6% range, benefiting from declining construction costs.
Capital allocation has also included share repurchases and targeted asset sales to improve long-term growth. Looking ahead, Schall highlighted falling multifamily supply as a key 2026 trend. With deliveries dropping sharply in core markets, he said AvalonBay is positioned to benefit as “we don’t need a ton of incremental demand to really start to push economics.”