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.