New housing starts have been flat for years now, but one sector is leading the pack and growing by leaps and bounds — the multi-family market. This includes buildings that house at least two units. Foreclosures have driven people into rentals, whether they be apartment buildings, duplexes or single family homes.
According to the Wall Street Journal, multi-family construction starts in November increased by over 25%, while single family starts limped along at just over 2%. Here’s the link to the article: http://online.wsj.com/article/SB10001424052970204791104577110204041040514.html:
We’re still not seeing healthy growth in the housing market, as foreclosure looms over thousands of homeowners and job security is an issue throughout the country. Economists aren’t predicting an upswing in the housing market until mid-2013. (Yikes!)
Even so, the Commerce Department states that compared to a year ago, housing starts rose in three out of four regions in the US, led by the Northeast. Only one region had a decline in starts — the Midwest. Well, Indianapolis is right in the middle of it (sigh) so I guess the good news for us investors is that rental demand/occupancy is up and this situation is likely to continue for some time.
As I’ve said many times, now is the time to buy rental property . . . single family, duplex, small apartment building . . . there’s a lot of opportunity out there for the smart investor. And the time is now! 🙂