Time for New Construction in Multi-Family

As vacancy nationwide drops to an all-time low of 5% by year end, an increase of 4M new Americans annually, the supply constraint obviously creates a huge need for new construction.

According to The National Association of Home Builders (NAHB), "declining multifamily vacancy rates are a hopeful sign for future multifamily market expansion". Vacancy reached a twenty year high of 10.4% in the final quarter of 2010.

Now that vacancy will be at 5% there will be a mad rush to build especially with rents going up substantially. A big factor will be the support of the banks and lenders to get back into construction. The other issue is how long it will take for new construction to get back into full swing. That could easily be three to four years away.

To read more on the topic and check out the charts, CLICK HERE.