Rental Apartment Construction Is At a 27-Year High

building constructionNew figures offer the latest reminder of an apartment boom.

Housing starts fell in October because of a 15.5% drop in the multifamily sector, which is notoriously volatile. But the broader picture shows that apartments have been on a tear this year.

Construction of multifamily housing units—those with five units or more—is running at its strongest 12-month pace since 1989. Moreover, the share of those units being constructed as rentals is at its highest since record-keeping began in 1974. More than 93% of units in buildings with at least two units are being constructed as rentals.

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This article was featured in an edition of AAOA Today and was hand selected by our editors as a piece of interest for American Apartment Owners Association Members