Single-family home construction made a strong move higher in July, but it was not enough to reverse a new dynamic in today's housing market; multifamily construction and demand are leading the recovery. After a decade of underbuilding apartments, cranes are scattering city skylines, and the numbers are truly staggering.
Multifamily construction activity is above historical averages in more than one-quarter of the nation's largest metropolitan housing markets, according to a new report from Trulia, a real estate listing and analytics company. In New York, activity is four times the normal average, in Boston, triple the average, and in Newark, New Jersey, double the average. This, as single-family home construction is running at half its normal pace.