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Markets shifting to apartments

Aug. 28, 2014 – According to a report in the Wall Street Journal, U.S. economists are noticing a shift in construction activity away from single-family homes to apartment buildings.

According to numbers from the National Association of Home Builders, the average single-family home costs about $323,000 to build and generates almost three full-time equivalent jobs. While the cost of an average rental apartment is only $128,000 and doesn't generate much more than one full-time job.

Home ownership rates dropped after the housing boom, leaving former owners renting apartments. The younger generation of potential first-time buyers have been holding off on purchasing a home and choosing to rent. But eventually younger families may choose to buy a home and as the labour market firms up, home ownership trends will go up with it.

For more information, go to http://blogs.marketwatch.com/capitolreport/2014/08/19/home-building-to-provide-less-economic-support-as-market-shifts-toward-apartments-economists/

August 28, 2014  By  Amie Silverwood