Multifamily units drive June housing start surge
Posted on Monday, July 27, 2015 at 5:25:14 PM
Much of the residential construction these days seems to be focused on multifamily units such as apartments or condos.
People looking to start households for the first time, and possibly in search of residential financing, are more likely to look at units in multifamily buildings, and the interests of these individuals drove recent construction, according to the Wall Street Journal. Construction of these residences grew 29.4 percent from a month earlier. This sort of building fueled June's increase in housing starts.
Despite all the recent multifamily unit construction, vacancies for this sort of housing remain extremely low.
"Even though we have all of this production, multifamily-rental vacancy nationally is at a 20-year low,"Steve Patterson, president of Miami-based Related Development, explained to the news outlet. "I think you can still look around today and feel that the market is in a good place."
The gains for multifamily unit groundbreakings follows a 16.9 percent decrease in May, and a jump of 37.5 percent in April, according to Bloomberg.
Gains in both single and multifamily housing starts were attributed to looser lending restrictions and employment gains, among other recent positive economic indicators.