The number of rental apartments being built these days is the highest in at least four decades, Wall Street Journal reports. Such a rapid development can be accounted to an improved job market which encourages young Americans to live on their own. Millennials are most definitely ready to move out of their parents house, but still not financially secure to buy.
Residential construction has long been recognized as the pillar of the economy and employment. Compared to previous years, however, the industry growth was driven by single-family homes.
Census data shows that last year, construction began on close to one million new residential units. One in three of those was a rental in a family building, which is the highest share since record started being kept in the mid-1970s.
Single-family homes comprised a big chunk of last year housing construction, but were still down some 87% in 1993 and 80% in the years prior to the recession.
“Builders are betting on more millennials leaving the nest this year,” said Jed Kolko, chief economist at Trulia, a real estate site. “But young people don’t get a job one day and buy a home the next. The improving jobs picture for young adults will mean more renters this year, not a surge in first-time home buyers.”
Read the full story at MSN via Wall Street Journal.