New York, urban markets lead condo rebound

Multi-family for-sale construction up 47 percent from low in 2010

New York /
Jun.June 30, 2014 08:00 AM

The condominium market is surging nationwide as financing trickles back into a real estate class shunned by lenders for years since the downturn.

The revival also comes amid an increase in demand for rental properties, pushing the apartment vacancy rate in the U.S. to the lowest level in decades. Rental rates are responding with an uptick in urban areas, while the availability of for-sale apartments remains historically low.

“We’re in the very early stages of a long recovery in condos,” Sam Khater, deputy chief economist with CoreLogic told Bloomberg. “Now you’re seeing rental booming, but today’s renters are going to be tomorrow’s condo buyers.”

Builders kicked off construction on 22,000 for-sale multifamily homes last year, up 4.8 percent from 2012 and 47 percent from a post-crash low in 2010, according to Census Bureau data cited by Bloomberg. In the first quarter of 2014, 8.5 percent of the 71,000 multifamily units were built for selling rather than renting — up 6.9 percent from the same period a year ago.

During the pre-crash housing boom, for-sale units constituted 45 percent of multifamily home starts.

Luxury condominium construction began to gather steam in Manhattan, San Francisco and Miami three years ago, with all-cash international buyers driving activity. Now, smaller markets are catching up. [Bloomberg]Julie Strickland


Related Articles

arrow_forward_ios
Inset: Jay Philip Parker, Alicia Cervera Lamadrid, Edgardo Defortuna
Real estate developers, brokers court Art Basel Miami Beach attendees
Real estate developers, brokers court Art Basel Miami Beach attendees
Bruce Eichner and the Community Church of New York at 40 East 35th Street (Google Maps)
Eichner to buy cash-strapped Midtown church for $70M, eyeing condo project
Eichner to buy cash-strapped Midtown church for $70M, eyeing condo project
277 Fifth Avenue and Shokai Group's Shawn Xianyang Zhang (277 Fifth Avenue/Rafael Viñoly, Shokai Group)
Shokai Group picks up unsold NoMad condos for $81M
Shokai Group picks up unsold NoMad condos for $81M
Vornado Realty Trust CEO Steven Roth with 220 Central Park South (Getty)
Vornado’s 220 Central Park South approaches $3B in total sales
Vornado’s 220 Central Park South approaches $3B in total sales
Jump in homeseller profit margin hits post-recession high
Jump in homeseller profit margin hits post-recession high
Jump in homeseller profit margin hits post-recession high
99 Hudson Street in Jersey City, NJ (99 Hudson Living)
$4.4M condo sale breaks Jersey City record
$4.4M condo sale breaks Jersey City record
Succession star Jeremy Strong who plays Kendall Roy with the Tribeca condo (Sotheby's, Getty)
“Succession” pad up for grabs in Tribeca
“Succession” pad up for grabs in Tribeca
Upper West Side’s most controversial tower closes first condo sale
Upper West Side’s most controversial tower closes first condo sale
Upper West Side’s most controversial tower closes first condo sale
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...