Millennials Fuel Apartment-building Boom
Construction started on 386,000 new apartments last year, according to census data, the highest number since 1987. Apartments, defined as housing units in buildings with 5 or more units, made up 35% of all home construction last year, the highest share since 1973 according to USA Today, April 2, 2016.
Rents are rising and vacancy rates for apartments are at 30 year lows and younger millennials are still waiting for a chance to move out on their own according to Jonathan Spader, a research associate at the Joint Center for Housing Studies at Harvard University. The annual share of first time home buyers is at its lowest ebb in three decades according to a National Realtors Report. “those things together suggest a bull market at the national level for apartments” Spader said. “Growth in demand is rising and new multi-family construction, at least in the short term, is here to stay.” According to Spader.