Dive Brief:
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Construction of multifamily buildings with at least five units is growing at its quickest pace since early 2006—but unlike a decade ago, apartments— not condominiums—are the hot properties.
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A boom in the construction of apartments for rent is a response to a growing demand by 18- to 34-year-olds who are not interested in home ownership, according to the September edition of Freddie Mac’s monthly report, Public Outlook.
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The Census Bureau confirms that so much demand exists for rental units that newly constructed apartments are being filled at the fastest pace in 12 years.
Dive Insight:
When apartments are in great demand, it usually means homeownership is declining, and that’s the case in 2014. For the past year, all growth in the creation of new households has taken place in rentals, as overall homeownership fell to 67.4%, the lowest rate since 1995.