The rush to rent is starting to show up in homebuilding statistics. Construction starts for multi-family homes have been soaring in recent years, hitting an all-time high in November when they accounted for a staggering 38.4% of total house sales. And this trend doesn’t seem to be slowing down.
“The rally in multi-family house building is in response to an increase in demand for such homes,” says Capital Economics economist Paul Diggle. “Renting has become more prevalent over the past nine years, and two-thirds of renters live in multi-family accommodations. The cyclical rebound in household formation over the next few years will be driven by renters, so it doesn't look like multi-family demand is going to weaken anytime soon.”
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