According to the U.S. Census Bureau, who recently released data concerning construction permits issued by localities in 2011, Raleigh, N.C. was the third top city with the most construction activity with 13.66 construction permits per 1000 housing units.
Why is multi-family building becoming more and more popular? According to the Trulia Rent Monitor, rents rose 5.6 percent nationally in 2011. Construction of multifamily buildings has increased because people could not necessarily afford to purchase or own a home during the recession. Therefore, more and more families are transforming their homes to become more multigenerational friendly.
While Texas and the Carolinas hold the position for the highest rate of construction in metro areas, New England, the Great Lakes, South Florida and Coastal California hold the lowest rate.
There are many factors that explain the sporadic growth in housing developments. One factor is whether there is long term employment growth in the area. Another factor is that many of the metros have had above-average job growth within the past ten years, and that there weren’t any huge home price declines during the crash.
For the U.S., one-third of construction permits in 2011 were for multi-family units, making builder trends change to meet the demand of multifamily construction.
Why does the builder market look more and more like a seesaw, up and down? First, construction activity is bet on future growth. It is a risky guess for builders to decide where to develop in areas where they are expecting a demand for housing. Also, housing units last for a long time, so they inevitably shape the metro areas they are in.
If you’re looking to buy or rent in the Raleigh area, make sure you visit our site for all of the latest North Carolina real estate news.