Despite an increase in permits, apartment starts are down
Apartments were at the forefront of the post-recession building surge. With fewer funds for a down payment and tight mortgage credit, many people turned to calling an apartment home. Now, it seems as though multifamily housing units and their single-family counterparts are ready to swap places.
According to MarketWatch, single-family starts hit an eight-year high in November of 2015 and in January the number of single-family units currently under construction reached its highest point since May 2008. Additionally, single-family homes authorized, but not yet started, were also at a seven-year high.
As for multifamily starts, they have fallen 21 percent in the past four months, despite an 18 percent increase in permits. While plenty of people are going to continue to live in apartments as city living continues to increase in popularity, builders have expressed optimism that the housing market is going to pick up in the coming months, despite the cost and lack of availability of lots and labor.