The juggernaut that has resulted in out-sized growth in multifamily development since the new decade began may be losing steam.
Here, Wall Street Journal staffer Chris Kirkham taps analysis from the National Association of Home Builders and BUILDER sibling firm Metrostudy that suggests that suggest the apartment boom might be cooling off as construction of single-family homes ticks up. Kirkham writes that the forecasts are, well, conjecture after all:
There have been predictions of a reversal before. Last year the NAHB forecast 26% growth for single-family construction and only 2% for multifamily. Instead, single-family construction grew at a rate of 10.3%, compared with 11.6% for multifamily.
If the single-family market picks up its pace, economists said there are still inherent challenges—tough lending standards, student debt and delayed household formation—that will inhibit a bigger surge.