CHICAGO—Developer Fifield Cos. just broke ground on NEXT, a 310-unit luxury apartment project in Chicago's River North neighborhood that it expects to deliver in early 2017. The groundbreaking ceremony took place on Tuesday as construction crews were already excavating the site. Thousands of young people have flocked to Chicago's amenity-rich urban core, but remain more reluctant than previous generations to purchase homes, and Fifield hopes the 28-story tower, located at 347 W. Chestnut St., will appeal to this demographic.

“With more and more multinational corporations and small technology startups moving into the city's River North neighborhood, the area north of Chicago Ave. in is in high demand by developers and potential residents alike,” said Randy Fifield, vice chair and principal at Fifield Cos., as she addressed the crowd. “Google is here, Amazon is coming, even Facebook is looking to Chicago for a new home. With more jobs comes the need for additional housing – housing that is more affordable for the next group of Chicagoans who are looking for starter homes near where they work, without forgoing the amenities they've become accustomed to. NEXT will provide just that.”

According to data from the US Census, the homeownership rate for those 35-and-under dropped to 35.9% in the second quarter of 2014, its lowest level in two decades, and held steady at 36% in the third quarter, meaning this group will drive demand for rental units in 2015.