Multifamily housing is set to continue its upward momentum in the U.S. building sector in 2012, according to leading economists.
More than 250,000 apartment complexes are expected to begin construction this year, according to Bank of America’s senior economist – a 45 percent increase from 2011 and the highest since the 2008 crash.
Ben Bernanke told audiences at the annual homebuilders convention in Florida early February that, “The state of the housing sector has been a key impediment to a faster recovery – homebuilding remains depressed in most areas. In contrast to the situation for owner-occupied homes, rental markets around the country have strengthened somewhat. Rents have been increasing and the construction of apartment buildings has picked up.”
As the single family housing market fails to rebound and foreclosures force more families into rental units, demand for multifamily housing is expected to grow throughout the year, with firming employment figures potentially allowing more individuals to rent.
Delays in home seizures have been ongoing because of a round of lawsuits concerning faulty foreclosure procedures on behalf of some of the largest lending firms in the United States, but settlements are being reached and the foreclosure rate may pick up once more, driving rental demand even higher.