Home Builders Rush to Put up Rental Units

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.

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