Multi-Family housing, senior communities, apartments, and condominiums are becoming a key consideration for many Americans living in the Florida and Georgia areas.
According to a recent article in The News Funnel, Typically, younger people rent apartments, but, according to experts, by 2016 this will be the preferred living arrangement for younger and older people alike.
Construction of single family homes dropped this past January whereas construction on multifamily structures soared. By December of last year, more than 370,000 multifamily units were built, a significant 12 percent jump. Even with vacancies at the lowest in more than 20 years, the increase in apartment type structures was up 24.5 percent in January compared to 2013.
Recent Reporting
The US Census Bureau, along with the Department of Housing and Urban Development (HUD) recently released information about housing while at the same time over 3.2 million jobs were added in the United States over the past 12 months. Based on this, it is anticipated that demand for the new supply of apartments will continue for a large number of millennials, families, and baby boomers.
Within the market cycle is significant demand tempered by a need for new supply. As such, apartment construction is keeping pace with the increasing number of people who choose to rent. However, although rents and vacancies are still healthy, many feel that developers need to scale back on construction after this year.
Currently, vacancies are at their lowest in over a decade and by the end of 2015, vacancy rate for apartments in the United States will hit 5.5 percent because of new supply while the cost of rent remains stable.
Within the next couple of years, the number of renters between the ages of 20 and 34 should peak. As part of this group, two million people will be gainfully employed and 1.53 million will be new younger households. Based on this, investors will likely see a lot of demand for new apartment construction.
As reported by Reuters, the rate of homeownership is expected to drop below 62 percent, which means it will take people within this age group longer to become homeowners compared to all other demographics of the past 30 years. For homeowners, this is an excellent trend.
However, landlords will also have greater opportunities by meeting renters’ needs as they progress in age. After all, younger renters become parents, prompting some to move to multifamily locations in suburban areas.
With over 66 years of combined experience and over 42,000 completed units, you can feel confident SWET Construction Group. With our experienced team, advanced knowledge of construction, high quality products, on-site management, turn-key solutions and precise estimation, we deliver on budged and on time results for your construction needs.