New data from Dodge Data & Analytics show apartment construction spending may drop 8 percent in 2018, the second consecutive annual decline after years of double-digit growth.
The supply of apartments and condominiums rose in recent years as builders responded to rising demand from those who preferred to rent post-recession. A new Commerce Department report showed completions of multifamily units in October reached the fastest annualized rate in nearly 30 years, per National Mortgage News. Currently, the number of apartments under construction is evening out from the 42-year peak earlier this year as builders work to adjust supply.
A more tempered pace of apartment development would free up construction workers who builders say are in short supply. That would be welcome news for single family homebuilding, which requires more labor relative to multifamily construction.
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