After years of downturn, home building is now solidly contributing to economic growth. An important factor behind that growth has been the expansion of multifamily construction such as apartment buildings and condominiums.
As a result of the housing crisis, homeownership is down, particularly among younger households. In addition, the overall number of households—homeowners and renters combined—is down compared to where it should be given the population growth.
This trend has translated into a lot of potential in household formation—as many as two million future households according to some estimates, with most of them expected to become renters as economic and labor market conditions improve.
The result for the building industry has been an increase in the demand for rental units, which in turn has reduced rental vacancy rates and driven demand for multifamily construction.
Read more...Multifamily Housing Growth Poised to Continue in 2013 - The Home Front (usnews.com)
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