As U.S. Housing Starts Plunge, a Cleveland Megaproject Defies the Trend

The 70-acre development, rising on the site of the former Richmond Town Square mall, remains on schedule to deliver 798 luxury units starting this October. Sterling McGregor, president of developer DealPoint Merrill, notes that the project secured its financial footing before current market volatility rendered many new proposals unfeasible. For developers starting today, the economic equation has shifted, leaving many planned projects stranded on the drawing board.

While the South, West, and Northeast regions have seen sharp declines in new construction, the Midwest remains an outlier, leading the nation in year-to-date residential permit growth. McGregor argues that this regional resilience creates a unique market advantage for projects currently under construction. As supply contracts nationally, the limited number of luxury residences nearing completion—such as those at Belle Oaks—are poised to become the primary options for affluent renters in the Cleveland area, including those in Beachwood and Shaker Heights. By integrating a Meijer Grocery Supercenter, 24 acres of open space, and a private residents' club, the development seeks to capitalize on the sustained demand within this specific local corridor.