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Apartment, Condo Markets Remain Strong

Builders and developers are reporting growing optimism in the apartment and condominium market, according to the latest Multifamily Production Index, released by the National Association of Home Builders.

"The apartment and condo markets continue to improve as new household formations generate demand," says W. Dean Henry, CEO of Legacy Partners Residential in Foster City, Calif., and chairman of NAHB's Multifamily Leadership Board. "However, there are certain issues facing builders and developers that may impede their ability to keep up with this demand, such as the rising cost of building materials, labor shortages, and the price of land."
The Multifamily Production Index has been strengthening since the middle of 2010, and multifamily starts has been increasing since the end of 2010 to coincide with developers’ increased confidence, says NAHB Chief Economist David Crowe.
NAHB is projecting a 30 percent increase in multifamily starts in 2013

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