Recently, the real estate market has been defined by low supply and high demand. This included rental homes like apartments. Luckily for renters, the number of apartments in the United States is increasing. Over the next two years, many more renters will be able to move into new apartments.
“Rental demand is driving the housing recovery,” according to the State of the Nation’s Housing report for 2016 from the Joint Center for Housing Studies of Harvard University. “With the economy nearing full employment and incomes beginning to climb, household growth returned to its expected pace… in 2015.”
The number of apartments being started is increasing. In 2015, 395,000 new apartments were started. This was well the normal rate of 331,000.
“Construction is continuing to ramp up. It’s been strong for four years now,” says Daniel McCue, senior research associate at the Joint Center for Housing Studies and Harvard University.
According to Penton Media, rental demand has been high enough to fill the new places.
“There has been a big surge in rental demand over the last 10 years,” says McCue.
Homebuilders are optimistic as well. There is construction of single-family homes. This may be competitive for new apartments but it is positive for the market.
“Builders remain cautiously optimistic about market conditions,” says Robert Dietz, chief economist for the National Association of Home Builders. “2016 should be the first year since the Great Recession in which the growth rate for single-family production exceeds that of multifamily. And we see single-family growth accelerating in 2017 as the supply side chain mends and we can expand production.”
Freddie Mac predicts 5.9 million total home sales this upcoming year. It would be the highest level since 2006.
At RE/MAX Paradise, we are happy real estate is continuing to grow across the country. We have amazing apartments to choose from in all different areas of Miami.