Construction market shows multifamily dwellings projects doing well
New information provided by the U.S. Census Bureau shows that the number of new housing projects increased 9.3 percent in November to make for the biggest increase in 19 months. Multifamily projects saw much greater increases than other proejcts, however, having risen 23.5 percent from last year.
That increase was coupled by only a moderate increase of 2.3 percent in the number of new single-family-home construction projects and building permits, apparently the worst number on record. Single-family building permits did even worse, however, with an increase of only 1.6 percent, compared to a 13.9 percent increase for permits for multifamily housing.
According to experts, the number of new construction permits is the main factor to look at when assessing improvements in the market, since they are generally measured better, are less impacted by changes in weather, and are prospective in nature.
Improvements in the multifamily housing market come primarily from widespread inability to purchase homes, leading to more renting. Another factor is the increasing number of baby boomers now looking for condos.
In terms of the Philadelphia region, there has been a fairly strong recovery in the rental construction market in 2011. Multifamily permits for the region reached a peak in the second quarter of this year, reaching the highest level in two years. By the end of 2012, there are expected to be an additional 1,100 units in the area.
The current state of the construction market aside, it is true that construction can be a complicated matter. Working with an attorney can help reduce uncertainty, resolve disputes, and minimize delays in construction projects. With the market as slow-moving as it is at present, it is important to take precautions to ensure that no dollar is wasted.
Source: Philadelphia Inquirer, “Rental-unit demand boosts construction starts, permits,” Alan J. Heavens, December, 21, 2011.