Housing starts jump all about multifamily


“We will take what economic activity we can get, but our housing market model was designed in the U.S. to build a lot of single-family homes for owners, not multifamily homes for renters," says Diane Swonk commenting on yesterday's big jump in housing starts.

A big share of the gain came from multifamily starts - typically a volatile number - but a rolling 12-month total shows apartment construction at its highest level in 25 years. Single-family housing has a bigger multiplier effect for both consumer spending and employment, says Swonk.

As for apartment owners, a separate report showed rents up 3.3% Y/Y, their fastest pace of increase in five years. It's little mystery why the stocks of companies like Equity Residential (NYSE:EQR) and AvalonBay (NYSE:AVB) are at all-time highs, but their owners may want to mull the fast pace of building.

Others of interest: ESS, PPS, UDR, AIV, CPT, HME, MAA, TSRE, AEC, IRET, APTS

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Comments (3)
  • DeepValueLover
    , contributor
    Comments (11066) | Send Message
     
    2015 will see a new record high in condo conversions.
    20 Aug 2014, 10:13 AM Reply Like
  • june1234
    , contributor
    Comments (4261) | Send Message
     
    With 2 of the top 3 job numbers categories each month remaining restaurants and retail not as much demand for homes in Pacific Palisades as hoped. To put it in proper perspective in 06, with 18 million fewer people in this country, they were averaging 2.3 million housing starts not 1 million of today. 2.3 million in 83, 2.5M in 73 and 74. http://bit.ly/1oNezWk
    20 Aug 2014, 11:09 AM Reply Like
  • SoCalNative+(RIP)
    , contributor
    Comments (651) | Send Message
     
    "With 2 of the top 3 job numbers categories each month remaining restaurants and retail not as much demand for homes in Pacific Palisades as hoped"

     

    Ha! +1
    20 Aug 2014, 12:46 PM Reply Like
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