Multi Family housing construction is booming, even above historic average, according to a new report from Trulia, a real estate listing and analytics company.
“No Where To Go But Up Throughout much of the recovery, builders have focused more of their efforts on multi-family homes than constructing single-family homes. So to better understand how hot multi-family construction actually is, we looked at where the share of multi-family buildings has been booming. Turns out, it’s very hot everywhere. Since last year, the share of multi-family buildings has increased in most of the metros that topped last year’s hottest homebuilding markets list.
We then took it a step further and compared the estimated 2015 multi-family permit activity to each metro’s historical norm. In some of the top 10 markets, multi-family construction was higher than the historical norm by several fold.”
“With respect to multifamily, this corner of the housing industry is certainly seeing robust conditions as rent gains are running at midsingle-digit rates,” said Peter Boockvar, chief market analyst with the Lindsey Group. “The apartment vacancy rate as of Q2 was at 4.2 percent, matching the lowest level since 2001, and the homeownership rate of 63.4 percent is the lowest since 1967.”
The fasted growing age group in the U.S. population is 65 to 74 years old. “Despite expectations that millennials are the force behind household formation, older adults are driving household formation. Strikingly, age groups younger than 55 collectively had negative household formation between 2014 and 2015, while 65- to 74-year-olds accounted for more than two-thirds (860,000) of overall household formation,” noted Jed Kolko, senior fellow at the Terner Center for Housing Innovation, University of California-Berkeley, in a recent article.
About a quarter of families in the United States live in multi-family housing or apartments and that number is on the rise. By entrusting the needs of your building to the professionals at SWET Construction Group, whether it’s for multi-family housing, apartments, condominiums or commercial buildings, you will receive the highest quality of interior and exterior construction. Our experienced team of experts will deliver cost-effective and efficient construction where you want it, how you want it and where you want it.