Building Texas: Multifamily developers tackle urban shifts

In December 2023, the City of Houston made a notable declaration, officially
naming Dec.19 “CIVE Day” in recognition of CIVE’s contributions to the
city’s growth and development. Founded 21 years ago as an engineering
firm, CIVE has evolved into a powerhouse in design, construction and
procurement, particularly in the multifamily sector.

“The growth in the population created strong demand for housing close to jobs, transportation, and cultural amenities,” President Hachem Domloj said, adding that he sees his honor not just as a celebration of CIVE’s accomplishments, but also as a testament to the rapid changes in Houston’s urban landscape. “Now, people want to be closer to the city and that has driven a boom in high-density, transit-oriented developments.”

CIVE has been at the forefront of this shift, blending engineering prowess with creative solutions to meet the growing demand for affordable housing. “We’re working on multiple projects right now, with more than 1,000 units in design or build stages,” he said. “A standout is our project near the Galleria, where we fit an eight-story building with 180 units onto a 30,000-square-foot plot.”
Over the past decade, Houston has seen an increasing number of mid-rise and high-density developments. Domloj attributed this to the city’s expanding population and the need for housing that offers more
than just a place to live.
Creating multifamily developments that cater to changing consumer demands is a priority for CIVE and Ryan Companies, where mixed-use developments that blend residential, retail and office spaces are a growing focus.
“Thoughtful integration of each asset class is essential in any mixed-use development,” said Marcy Phillips, Senior Vice President for Multifamily Development at Ryan Companies. “This begins with considering how a person first engages with the community and continues through to the resident’s overall live-work-play experience.”
Domloj highlighted a similar approach in CIVE’s projects, particularly in student housing. One of the company’s key developments is a transitoriented, affordable housing project specifically designed for students.
“It’s not like typical student housing where tenants share kitchens or other amenities,” Domloj said. “These are individual studio units, located near the Metro rail line, providing students with easy access to public transportation. We modeled this project differently to value engineer, optimize the budget and make it affordable for the end user, while ensuring accessibility and sustainability.”
Both CIVE and Ryan Companies have embraced innovation to navigate the complexities of today’s multifamily landscape. For Domloj, the key to CIVE’s success has been adaptability.
“We started a division for procurement, which became its own company,” he said. “This allows us to procure materials in ways that give us an edge over competitors, especially when faced with high interest rates and material shortages.”
Phillips echoed this emphasis on innovation, highlighting Ryan Companies’ focus on technology and strategic planning. “We are maintaining control of key land assets and ensuring that design plans are aligned to start when the capital markets and interest rates stabilize,” she said. “Additionally, we are investing in innovative technologies, including artificial intelligence, market analytics and new prototypes, which will allow us to deliver products to market more efficiently.” Ryan Companies is also preparing to deliver more than 1,100 units in Texas by 2025, with major projects underway in Houston, Austin and Dallas-Fort Worth.
For both Phillips and Domloj, multifamily development is about more than profitability. It’s about contributing to the communities they serve. Domloj stressed that developers have a responsibility to think long-term. “Houston is at a pivotal moment in urban development,” he said. “We need to think beyond just short-term gains and focus on the sustainability of the communities we’re building.” Phillips agreed, emphasizing that creating vibrant, sustainable communities is crucial.
“Renters will continue to demand best-in-class features, amenities and overall resident experiences,” she said. As these challenges reshape the landscape, developers across Texas are adjusting their strategies to meet shifting market conditions while keeping a long-term view in mind. “Recent years have seen extreme fluctuations due to the pandemic, with record lows and highs in areas such as interest rates, capitalization rates, and supply and demand fundamentals,” Phillips said, adding that record high multifamily supply presents its own set of challenges for developers. “Design, entitlements, permitting, labor force availability, construction delays and rental price reductions, as well as increased concessions and a sluggish buy/sell market are affecting the industry.” Both leaders believe that market recovery is on the horizon. “The growth fundamentals in Dallas-Fort Worth are particularly strong, positioning the area well for both immediate and long-term multifamily development,” Phillips said. “While short-term economic pressures exist, we expect them to ease with falling interest rates and cap rate compression. With a typical pre-development timeline of two years, we believe that market conditions will have improved by the time new projects are delivered.”