On Friday, the housing market received a strong bullish jolt from the latest starts and permits data, which however showed that while traditional single-family units barely budged, there was another sharp spike higher in multi-family, i.e. rental unit construction.
And, in light of prevailing asking rent prices, this rise in multi-family supply is a welcome development: with most Americans (and certainly Millennials) unable to afford traditional housing, demand for rental housing is off the charts, pushing average asking rents to all time high with supply sure to follow, which in turn will eventually push prices back down again.
All that is Econ 101. There is just one problem: developers are putting up the wrong kinds of buildings, focusing almost entirely on the luxury segment. However, as discussed here recently, the luxury market is by now largely overbuilt, while the shortage of affordable rental housing is growing, as developers remain hamstrung by the now record-high cost of construction.
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9 comments:
What is this writer smoking???? There's been nothing but standard section 8 multi unit apartments being built for the last 10 years! Is this what is now called "Luxury" housing???
Good Lord, I wonder what their opinion is of my 1500 sf rancher on a half acre isI must be in a ghetto or something.
No doubt a shortage of affordable homes in Maryland because of high development costs.
10:29 There is a whole big country beyond the bay bridge that is not economically depressed. New luxury apartments in our area rent for $2,800 for a 1 bedroom and $3,400 for a 2 bedroom.
6:01 AM thank you. This place is ridiculous. clueless.
My adult children live at home with me just for this very reason. Rents are too high for one income. Either live at home or share an apartment with someone to help with the expenses. If you don't want to live in a slum, you live at home.
Just look at the Crisfield waterfront condominiums that are section 8 housing now.
Or you get an education and a real job with good pay, benefits and sick time. You save your money and purchase a home instead of dining out, cable tv, video games, big tv's, new cars and vacations at age 25.
Even people in Crisfield don't want to be in
Crisfield! No jobs, no money, no future.
601
Thank you.
It is frustrating isn't it?
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