This blog previously discussed how more young adults are striking out on their own and looking for affordable housing. Paired with apartment rental prices on the rise, this trend has caused the construction industry to experience an increase for the need for multifamily housing complexes. According to the Commerce Department, last month showed new apartment complexes were going up at the fastest rate since July 2008.
Companies looking to capitalize on the building boom should partner with a lender that specializes in construction loan software. That way, businesses can keep their monthly payment plans in check with an amortization calculator as they take part in the building recovery.
The New York Times highlighted this topic in a recent article, adding that analysts say the steep increases between 2011 and 2012 are unlikely to be repeated as a surge of units are completed in the latter part of this year and will continue to come on the market early next year.
Camden City Centre, being built by Shares of Camden Property – a real estate investment trust – is a residential complex in Houston that will open next year with 268 units available for rent.
"The demand for building is all over the country, really," Ric Campo, Camden's chairman and chief executive told The Times. "We're seeing higher rents, faster lease-ups, lower construction costs – everything you want to see. Part of it is there's just a pent-up demand for new product because we didn't build anything during the downturn."
The Houston-based National Association of Home Builders stated that from January to September, construction permits for multifamily housing increased by more than 70 percent over the same period a year earlier. Single-family homes, however, only saw a surge of 25 percent.