Apartment construction is the place to turn for developers and contractors as the lukewarm housing market continues to tilt against home ownership.
Where you do not want to be is in the custom-home market. So many McMansions are available and they are available at half-price. But the apartment market is hot right now.
Multi-family housing is a good bet for area builders and developers, due to packed apartment buildings, low labor costs, easier financing and demographic trends indicating that there are more young people and empty nesters who can't or won't buy a house or condo right now all.
There's definitely growing demand for rentals. In the past, a lot of (the new renters) might have been buyers of entry-level condos. But things have changed, and to some degree maybe permanently.
So, while construction activity in the building market still is weak overall, there has been an uptick in investing in apartment projects. The numbers are still of from years gone by, there was more activity in the first half of 2011, and a general improvement.
'Mood and attitude'
Timing in this mini-surge may be a key factor as well.
Many companies hope to get new rental housing on the market rapidly, in order to capture available customers before the tide turns and more people want their own homes again. Therefore, mood and attitude has so much to do with the trends that get going.
Home sales remain historically weak and seem likely to stay that way for some time as high unemployment, a foreclosure backlog and weak home prices keep many potential buyers from signing contracts.
In the meantime, apartments have become more popular.
For help and assistance in developing Real Estate in Massachusetts, contact the Cherrytree Group.
Original article – Wisconsin State Journal