The housing market is no stranger to rapid growth and change. Over the past few years, the boom in 5-unit apartment construction has been driving much of the housing market growth in the United States. However, some experts are now asking if we have finally reached the limits of this boom.
Mortgage industry expert, Logan Mohtashami, recently weighed in on the subject of multi-family housing starts and whether the 5-unit construction boom has come to an end. In his analysis, Logan identified key trends that may be signaling a decrease in this sector of the housing market.
Key Trends and Takeaways:
• Apartment starts have declined in six out of the last twelve months.
• Single-family starts have remained below 1,000,000 units for 18 consecutive months.
• The North East coast accounted for 56% of all current 5-unit construction.
• The Inventory of for-sale homes is tightening in areas of 5-unit construction, creating a challenging environment for new construction.
• The only major metro seeing significant 5-unit construction growth is LA.
Logan Mohtashami has concluded his analysis with the warning that the 5-unit construction boom may be over. He recommends investors and builders alike exercise caution in this sector and use trend data to gauge the likelihood of a successful project. The data may be indicating a shift in the market that multi-family builders should be aware of before beginning their next project.
You can read this full article at: https://www.housingwire.com/articles/is-the-apartment-boom-finally-over/(subscription required)
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