There are 44 metro areas which will double their multifamily construction this year. Among the major markets, the growth is staggering:
The Boom Has Just Begun
Despite the boom, many of these markets are far from their peak levels of construction, and we think further increases can easily be absorbed in a growing economy.
The Shift to Rental
There is now more multifamily construction than single-family construction in 36 of the 183 MSAs we forecast. The surge in multifamily construction has extended beyond the coastal markets to such inland areas as Austin and Dallas. Here are the 20 markets where multifamily most exceeds single-family construction
The Consequences
The growth in multifamily construction is contributing to rising labor and materials costs for builders of all homes. At some point, the multifamily market is likely to get overbuilt too, which always seems to coincide with a recession. Right now, the outlook for the apartment market looks bright.
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