Multi-family construction boomed in April across the U.S., with starts on buildings with five or more units up 43 percent from March.
According to the U.S. Census Bureau, housing starts overall were up 13 percent last month from March. However, single-family housing starts increased just 1 percent, meaning that multi-family is driving the market.
“Bottom line, with the home ownership rate down to 64.8 percent versus the 2004 peak of 69.2 percent, and the 50-year average of 65.4 percent, the trend to renting is obvious for a variety of reasons we all know,” Peter Boockvar, an analyst with the Lindsey Group, said. “Expect this trend to continue with the home ownership rate likely falling to below the 64 percent level, give or take, seen between the mid-1980’s to mid-1990’s.”
In fact, year-over-year, single-family home construction is well below last year, according to CNBC. Single-family housing starts are up just 2 percent from January through April of this year, compared to 26 percent during the same time period in 2013. [CNBC] – Christopher Cameron