Dive Brief:
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The lag in multifamily construction dragged overall housing starts down in October, according to the Commerce Department, but the building of rental apartments is still at a 27-year high.
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A Wall Street Journal analysis of multifamily construction showed that 93% of new buildings with two or more units are slated as rentals.
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Despite its October setback, the upward trend for the multifamily sector is expected to continue. While multifamily housing starts dropped 15.5% in October, permits for future buildings of five or more units jumped 8% since September, the Commerce Department reported earlier this week.
Dive Insight:
Economists are hoping that pent-up demand for single-family homes will translate into purchases by young renters as the economy creates more jobs and higher wages. In the meantime, however, a steady supply of rentals is needed to house those who can’t afford—or don’t want—to own property.