Photo: Flickr / loosepunctuation
Americans are still recovering from the shocking implosion of the housing market.Buyers have become renters, which has been a boon to the multi-family, apartment construction market.
And recent evidence shows that this trend is continuing its upward trajectory.
John Burns Real Estate Consulting released an Apartment Building Market Intelligence report which shows that apartment construction is booming in major markets:
The swell in permits indicates a strong demand for apartments. Moreover, there is still ample room for growth, as these major markets still have not reached peak construction levels:
However, a ‘peak’ level of apartment construction is not desirable.The report indicates that overbuilding in the multifamily market “always seems to coincide with a recession.”
All of this doesn’t necessarily mean that the American public prefers apartments. Rather, it underscores widespread scepticism that housing market has bottomed. As such, this boom in apartments is a counter-cyclical trend in light of a struggling housing market which remains plagued by fluctuating home values, low availability of credit, and 14 million underwater homeowners.
Business Insider Emails & Alerts
Site highlights each day to your inbox.