Information from the United States Department of Commerce indicates that multifamily construction has reached its highest level since 1989.
While improvements in single-family housing have a greater influence on economic indicators such as consumer spending and job growth, increases in multifamily construction still provide reasons for encouragement about the U.S. economy.
For example, the increase in apartment construction is a sign that the economy may be improving enough to encourage the creation of households and could lead to the additional need for both single-family and multifamily residential construction to meet demand for both apartments and individual dwellings.
Apartment living provides options both for those who prefer the flexibility of renting and for those who don’t qualify for a mortgage or can’t afford a down payment. However, the continually rising rent costs could motivate renters to leave apartments and invest in a house.
The Commerce Department also reported that building permits increased to a seasonally adjusted annual rate of 1,052,000. This rate represents an 8.1 percent increase above the June 2014 rate and a 7.7 increase above the July 3013 rate.
Housing starts were up 15.7 from June 2014, and 21.7 percent from July 2013, showing a seasonally adjusted annual rate of 1,093,000, according to data on the Commerce Department’s website.
Residential builders can rely on Construction Monitor for the latest and most accurate information on building permit issuance and housing starts throughout the country. Contact us today for more information on current trends in U.S. apartment construction.
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