The Multi-Family, Condominium, Apartment and Assisted Living Facility housing in the Southeastern United States, including Florida and Georgia, has experienced the quickest recoveries in the construction industry.
“Decreased vacancy rates and lower rent prices have facilitated growth in the Multi-family complex starts”, according to World Industry Analyst Omar Khedr. The boost is also due to the aggressive lending into the apartment and multi-family sectors, decreased homeownership and the increased job rate.
“Demand for industry services has been largely supported by many potential homeowners who have opted to rent apartments rather than buy homes,” said Khedr.
“First, during the collapse, production of multi-family housing has significantly decreased, so part of the resurgence in 2011 was just catching up with a more normal flow. Second, the strong demand for apartments is being fed by a rising demographic of echo boomers that will continue to grow in size as we absorb people born after 1980. Third, young adults who might have otherwise chosen home ownership, and some older adults as well, are hampered by a variety of issues, such as unusually tight underwriting standards for mortgages, lower credit scores because of the slow employment market and lower entry salaries. As a result, the share of households that rent rather than own has increased steadily since 2004 and will likely continue until jobs are more secure, mortgages more accessible and careers more stable,” said David Crowe, Chief Economist.
While the future of multi-family housing market is prosperous, there are a few challenges such as the rising cost of building materials and availability of labor. The SWET Construction Group is a premier contractor for multi-family and hospitality industry. We are committed to quality new construction and renovations of existing buildings. We pride ourselves in client satisfaction, delivering the highest efficiency craftsmanship and unmatched expertise and value.