Multifamily housing production reaches an even keel
Supply is expected to meet demand in 2018 and 2019.
Although multifamily housing starts are expected to slightly moderate this year and in 2019, production levels are projected to remain stable in a range considered normal, according to experts participating in a press conference today during the International Builders’ Show in Orlando.
“For the foreseeable future, production of multifamily housing is expected to be running at a trend level where supply is meeting demand,” said NAHB Senior Economist Michael Neal.
Multifamily starts are expected to edge 2% lower this year to 354,000 units from a projected 360,000 total in 2017 and fall another 3% to 344,000 in 2019.
However, Neal noted this does not indicate weakness in this market segment. “From 1995 through 2005, multifamily start averaged 335,000,” he said. “Construction activity during the past four years has been running above this trend, and we are seeing the market stabilizing near more normal production levels.”
Ironically, one factor contributing to the stabilization of multifamily activity is the low inventory of homes on the for-sale market. “Fewer homes for sale means that some renter households looking to own will have to rent for longer than they may anticipate,” he said.
Click here to read the entire story.
Source: NAHB.org
CONTRACTOR SUPPLY MAGAZINE
The April/May 2024 issue of Contractor Supply magazine is here!
This digital edition is sponsored by BECK AMERICA Inc.
Our cover story, Masters of Fasteners, visits Interstate Screw Corp. of metro Miami, which serves the fastening needs of south Florida, the Caribbean and Central and South America.
Also in this issue,our Industry Updates cover Adhesives, Tapes and Sealants, Anchoring Systems and Safety and PPE.
This digital edition is fully searchable and contains live links to every advertiser and new product listing. Click away!
