Builders See Continuing Demand for Apartments

Washington, DC, Feb. 6, 2014 -- Strong demand for apartments will increase over the next several years, said panelists during a press conference at the National Association of Home Builders International Builders’ Show in Las Vegas.

And while multifamily construction continues to be strong, NAHB does expect the speed to decrease as sustainable levels are reached in 2015 or 2016.
 
“The multifamily market has rebounded significantly from its trough in 2009 at 82,000 multifamily housing starts to 340,000 in 2013,” said NAHB Chief Economist David Crowe.

“NAHB is forecasting 363,000 multifamily housing starts in 2015, which is above the previous longer term average of 340,000 as more young adults prefer renting.”

The strong performance in multifamily comes from three sources, explained Crowe.

“First, during the collapse, production of multifamily housing had significantly decreased, so part of the resurgence in 2011 was just catching up with a more normal flow. Second, the strong demand for apartments is being fed by a rising demographic of echo boomers that will continue to grow in size as we absorb people born after 1980. Third, young adults who might have otherwise chosen homeownership, and some older adults as well, are hampered by a variety of issues, such as unusually tight underwriting standards for mortgages, lower credit scores because of the slow employment market and lower entry salaries. As a result, the share of households that rent rather than own has increased steadily since 2004 and will likely continue until jobs are more secure, mortgages more accessible and careers more stable.”
 
Many markets have regained their footing and are producing at least as many multifamily units as they did during the relatively stable period between 1996 and 2006.



Other Archived Articles

More Designers, Architects Attend Surfaces   Full Article
Dallas, TX, Feb. 12, 2015 -- Informa Exhibitions U.S. said that attendance at this year's International Surface Event was comparable to the 2014 show.

Retail Sales Decline in January   Full Article
Washington, DC, Feb. 12, 2015 -- Retail sales fell 0.8% last month, according to the Commerce Department.

Jobless Claims Edge Up Last Week   Full Article
Washington, DC, Feb. 12, 2015 -- Initial applications for unemployment benefits last week rose 25,000 to a seasonally adjusted 304,000, the Labor Department said.

Milton Warman, Coloramic Tile Founder, Dies   Full Article
Chicago, IL, Feb. 12, 2015 -- Milton Warman, 92, founder of Coloramic Tile and Carpet Fair, died Feb. 7.

House Price Growth Steady in Most Markets   Full Article
Washington, DC, Feb. 12, 2015 -- The majority of metropolitan areas experienced steady but slightly stronger price growth in the fourth quarter, according to the latest quarterly report by the National Association of Realtors.

Stonewood Floors Names Martin Senior Vice President   Full Article
Everett, WA, Feb. 11, 2015 -- Daniel Martin been named senior vice president for Stonewood Floors.

Mortgage Application Volume Declines Last Week   Full Article
Washington, DC, Feb. 11, 2015 -- Mortgage applications last week decreased 9% from one week earlier, according to the Mortgage Bankers Association.

December Foreclosures Lowest Since 2007   Full Article
Irvine, CA, Feb. 11, 2015 -- There were 39,000 completed foreclosures nationwide in December, according to real estate information firm CoreLogic.

Nydree Expands Distribution Agreement With Spartan   Full Article
Forest, VA, Feb. 11, 2015 -- Engineered wood flooring maker Nydree Flooring has chosen Spartan Surfaces to distribute its products in Virginia, Washington, D.C., and Maryland.

Mohawk, Shaw, Tandus/Centiva Again on Training 125 List   Full Article
New York, NY, Feb. 11, 2015 -- Training magazine has ranked Mohawk Industries 14th, Shaw Industries 54th, and Tandus/Centiva 66th on its annual list of top training organizations.

NeoCon East Moving to Philadelphia   Full Article
Chicago, IL, Feb. 11, 2015 -- The 13th edition of NeoCon East will be held Oct. 28-29 in Philadelphia.

Small Business Optimism Down Slightly in January   Full Article
Washington, DC, Feb. 10, 2015 -- Optimism among small business owners fell in January, according to the National Federation of Independent Business.

Job Openings at Highest Level Since 2001   Full Article
Washington, DC, Feb. 10, 2015 -- Job openings increased to more than 5 million in December, according to the Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics.

Wholesale Inventories Edge Up in December   Full Article
Washington, DC, Feb. 10, 2015 -- U.S. wholesale inventories ticked up in December but below expectations, according to the Commerce Department.

Congoleum Names O'Connor CFO   Full Article
Mercerville, NJ, Feb. 10, 2015 -- Congoleum Corporation said that Chris O’Connor has been named chief financial officer.

U.S. Firms Win Domotex Carpet Awards   Full Article
Chicago, IL, Feb. 10, 2015 -- Hannover Fairs USA said its U.S. exhibitor clients, Wool & Silk and Art Resources, received Carpet Design Awards at Domotex 2015.

Share of 'Zombie' Foreclosures Growing   Full Article
Irvine, CA, Feb. 9, 2015 -- The share of so-called "zombie" foreclosures is growing, although the absolute number is falling, according to tracking firm RealtyTrac.

RD Weis Marks 25th Anniversary   Full Article
Tarrytown, NY, Feb. 9, 2015 -- RD Weis threw a party this weekend to celebrate its 25th anniversary complete with balloons, historic photos, friends, suppliers and employees.

USFloors Names Commercial Sales Vice President   Full Article
Dalton, GA, Feb. 9, 2015 -- Rick Morris has been named vice president of sales for USF Contract, the commercial division of USFloors.

Cavinato Elected President of Global Flooring Alliance   Full Article
Dordrecht, The Netherlands, Feb. 9, 2015 -- Carlo Cavinato has been named president of the Global Flooring Alliance.