Dave Stockert, president and CEO of Post Properties (NYSE: PPS), joined REIT.com for a CEO Spotlight video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
Atlanta-based Post Properties is a developer and operator of multifamily communities in the United States.
Stockert discussed supply and demand fundamentals in the company’s core markets.
“Certainly there is more supply of apartments than we might typically see in other housing cycles, but it’s more than offset by the fact that the rest of the housing business is really undersupplied,” he said.
Overall, the housing market is in balance, Stockert added. “Occupancies on average are very high, supply on the for sale side is very low, rents are rising as are home prices, so it still feels pretty good,” he said.
Occupancy levels at Post properties are in the mid- nineties range, according to Stockert, although some outliers exist. He noted that Houston is Post’s most challenging market. While the company is bullish on Houston long-term, “it’s going to be a tough couple of years,” he said.
Meanwhile, Stockert noted that the average age of a Post renter is 32 years old. This reflects the fact that many millennials are delaying life decisions, and remaining in rented accommodation, he said.