At a time when millions of Americans are struggling to find work, some of the biggest names in real estate are investing heavily in new construction, which may help ease some of their financial burdens.
The biggest names, according to data compiled by RealNetworks, include The Beverly Hills Realty Group, which owns several luxury properties and is investing $1 billion in new projects, and The Kensington Group, a company that has built more than 100 luxury apartments in Manhattan.
The Kensington’s $2.2 billion investment in a 1.2-acre development on the Upper East Side has led to a boost in rental yields, with the company now expecting an average increase of 7 percent in rents in the next year.
The Kenskins’ investment in the historic East Village development has also led to an average annual increase of 5.6 percent, the company said.
But other companies, such as Realtor Group, and smaller ones, like The Apartment House Group and Apartment Towers, are also ramping up their efforts to build luxury projects.
The Apartment Houses, based in New York, has built five luxury apartment projects and is now expanding its portfolio of about 400 apartment buildings in the U.S. and Europe.
The company expects to add more than 300 luxury apartments and offices by the end of 2019, according a Realtorp filing.
The Realtors said they plan to add nearly 3,000 luxury apartments by 2020, a number they believe is on track to be higher than what the company anticipates.
That includes a $5 billion expansion of its new luxury apartments at the Uptown site of the new World Trade Center in New Jersey.
The Beverly Hills Group, meanwhile, has invested $3.8 billion in luxury apartments.
That investment is helping the company to continue to grow, said the company’s CEO, James T. Lacey.
In its most recent quarter, the Beverly Hills group reported net income of $3 million.
The Residence Inn Corp., based in Philadelphia, has also been ramping its growth in luxury units.
The hotel chain has added more than 1,400 luxury apartments since 2016, with an average rental yield of 8.6, according data compiled from Realtormarket.
Residence, based out of New York City, said it expects to increase rental yields by 7 percent next year, an increase of 6 percent from 2016.
The Bed and Breakfast, based mostly in Washington, D.C., has been investing heavily into luxury developments, including the $10 million $5.4 billion Skyview development in Miami, which is nearing completion and is expected to be completed by 2019.
The hotel chain expects to invest more than $15 million in luxury projects in the region by the first quarter of 2020, including a $4 million expansion of the Skyview luxury apartment building in Miami and $5 million for the $5-million development in Tampa.