Industry News

Multifamily construction poised for increase

Los Angeles, Miami seen as most favorable for new development

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The increasing popularity of condominiums is expected to continue in the coming year, driving construction starts of for-sale multifamily units to highs not seen for more than 10 years, according to David Seiders, chief economist of the National Association of Home Builders. Speaking at a special session at the 2004 International Builders' Show in Las Vegas on the economic outlook for the multifamily industry, Seiders said condos represented slightly more than a quarter of all multifamily development started in 2003 – a share that approaches that of the 1987 and 1993 booms in condo construction – and that rate is likely to continue to rise in 2004. "Last year was the best year in history for home sales in general and condos have great appeal to those who want ownership as well as all the benefits of apartment living," Seiders said. As for the rental apartment sector, which has suffered from rising vacancy rates over the past two years, Seiders said a general upturn ...