New multifamily construction sparked by demand for rental housing

Increased demand for rental housing has led to a considerable shift upward in multifamily construction, the National Multi Housing Council (NMHC) found in its latest Quarterly Survey of Apartment Conditions, reported by Calculated Risk.

Development activity has increased in most markets. Two-thirds (67 percent) of respondents noted considerable activity, either in the planning stage or actual new construction. In particular, 20 percent said developers are quickly breaking ground on new construction projects. The other 47 percent reported an increase in pre-construction activities, but not much actual construction yet.

Even with this increased activity, more than half (54 percent) think new development remains below demand.

Overall, the apartment market continued its healthy growth, although there is some evidence of a slowdown.

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