It’s not news that Americans have been renting more than buying in the housing market.¬† And many renters are heading into apartments.However, this is literally changing the landscape of America
According to Peter Dennehy of John Burns Real Estate Consulting, apartment complexes are going up in metropolitatn areas that aren’t well-known for their urban characteristics.
What is significant is that the increased production of urban housing (typically at densities in excess of 30 units per acre) is taking place not just in markets with an established trend for higher-density housing (New York, Boston, Miami, Seattle, Chicago), but is also taking place in MSA’s where the majority of new housing production in recent decades has been single-family. There are more apartment units being permitted this year than detached units in places like Los Angeles, Orange County, San Diego, San Jose, Austin and Durham. For this new wave of development, renters, apartment developers (and those financing new units), have focused on the best locations for new developments that combine live, work and play, and in many markets, that is transforming the suburbs.
Dennehy takes a closer look at Orange County:
To pick a market that is undergoing a transition to urban densities, consider Orange County, the place that has epitomized development of low-density, suburban master-planned communities since the 1960s. An improved economy, dwindling availability of detached land and continued high cost of ownership housing has resulted in the next iteration of planned community, the rental master plan. The Irvine Company introduced the 1,677-unit Village of Cypress in early 2012 in a location central to jobs and shopping, with four distinct rental products built around a common recreational facility and pool….
Say good bye to front yards.