KTGY Architecture + Planning Hosts Open House for New Chicago Office
The Chicago/Midwest office of KTGY Architecture + Planning, an award-winning national architecture and planning firm, hosted an open house at its new location at 343 West Erie Street in Chicago last month. The event, attended by local industry leaders, featured a robust discussion on Chicago’s housing market based upon a presentation by John Burns Real Estate Consulting.
“Establishing the KTGY Chicago office combines the 25 years of experience that Craig and I bring designing residential, mixed-use and retail projects locally, with 25 years of KTGY’s exceptional national track record in those same sectors,” said David M. Kennedy, AIA, LEED AP, principal at KTGY Architecture + Planning’s Chicago/Midwest office. “This event was the ideal opportunity to welcome clients, partners and friends to our new Chicago office, introduce KTGY, and share critical market insights.”
The event featured “Cocktails & Condos,” a presentation by Lance Ramella, senior vice president at John Burns Real Estate Consulting, which provided an overview of the national and local housing market, noting how the millennial and baby boomer populations are driving a new trend in the multifamily sector.
Over the last decade, those aged 20-29 have grown by 4.7 million, while those ranging from 55 to 64 years old increased by 10.2 million. “Both of those groups seek the most carefree lifestyles and have largely driven the demand for new construction of multifamily rentals,” said Ramella. “But a new trend has increased demand for both rental and for-sale multifamily housing, as the development of ‘surban’ locations spreads throughout the Chicago area.”
Surban locations are defined as redeveloped suburban downtowns, with elements of urban living combined with suburban affordability. “The ability to take a train home from work, then walk to your favorite restaurant or store, has replaced the days of a long car commute to a neighborhood where you’d have to drive to get anyplace,” said Ramella. “The demand for convenience, over space, has driven the popularity in surban locations.”
Ramella noted another factor driving this trend is that many would-be homebuyers are priced out of more attractive urban locations. This is particularly true in Chicago’s multifamily sector where the limited, older supply of condominiums is grossly outweighed by a multitude of amenity-rich rentals. “It’s true that a major hindrance for potential young homebuyers is the lack of affordable homes or condos in the most attractive urban neighborhoods,” he said. “But schools still continue to be the main driver for buyers who would otherwise choose to remain in the city, so until Chicago’s schools are fixed, the exodus to the suburbs will continue.”
He added that, over the next decade, today’s youngest renting population will be ages 30-39, which are key years for starting families and buying a home. In fact, suburban household growth is expected to reach 79 percent over the next 10 years, compared to 15 percent urban growth.
According to Craig R. Pryde, AIA, LEED AP, principal at KTGY Architecture + Planning’s Chicago/Midwest office, baby boomers’ housing needs will also experience a dramatic change. “In the next 10 years, many baby boomers won’t be able to stay in their multifamily rentals or single-family homes, and will be in need of retirement and long-term-care housing,” he said. “And that’s something we need to prepare for today in both the city and suburbs.”
KTGY is an international full-service architecture and planning firm that has received nearly 500 awards over the past 25 years, most recently including seven honors from the National Association of Home Builders “Best of 55+ Housing Awards.” KTGY currently has offices in Chicago, Irvine, Los Angeles, Oakland, Denver, Tysons, Va., and Pune, India.
“KTGY’s broad reach enables us to expand our service offerings for Midwestern clients who are active in several markets,” said Pryde. “This extended reach is exciting for us, as well as our ability to enhance KTGY’s presence in the healthcare sector.”
About John Burns Real Estate Consulting
Trusted analysis for executive decisions, John Burns Real Estate Consulting, LLC provides independent research and consulting services related to the US housing industry. John Burns founded the company in 2001 to address a need for better analysis on the housing market. The company has grown to a highly passionate team of research analysts and consultants in offices across the country, who work together to provide the most trusted source of US housing analysis. For more information, visit realestateconsulting.com.
About KTGY Architecture + Planning
KTGY Group, Inc., Architecture + Planning, established in 1991, is a national award-winning firm providing comprehensive planning and award-winning architectural design services for residential communities, retail, commercial, healthcare, civic, hospitality, mixed-use and related specialty developments. KTGY delivers innovative solutions that reflect clear understanding of development, market and consumer trends, and financial performance. KTGY serves clients worldwide from offices in Chicago, Ill., Irvine, Los Angeles and Oakland, Calif., Denver, Colo., Tysons, Va., and Pune, India. For more information, visit KTGY.com.