Construction starts of townhouse rows and apartment buildings reached the highest level in 28 years, MarketWatch reports.
Builders are focusing more on building multi-dwelling projects with five units or more because of a trend toward renting, especially as obtaining mortgages is still difficult for many Millennials. Construction was particularly active in the South and Northeast.
At the same time, the surge in demand for rentals has pushed up prices, and housing expenses went up 3 percent in the past year.
The number of permits for multi-unit buildings of five or more surged 16.1 percent last month, the highest level since 1990. Meanwhile, single-family permits rose only 0.9 percent the same month to a 687,000 annual pace, though it is still the strongest reading in seven years.
Advertisement
Related Stories
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development
Sustainability
Which Green Building Practices Are Home Builders Using Most?
A recent report reveals which green-building practices are most popular among single-family home builders and remodelers
Market Data + Trends
Single-Family Permits Show Increase in February
Year-to-date ending in February, single-family permits were up in all four regions of the U.S.
