Industry News

Condo share to decline as rentals rebound

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The share of condominium units among all multifamily housing starts rocketed from just above 20 percent in 2003 to about 48 percent at the end of 2005, though that share is expected to fall back as the condo market cools, the economist for the National Association of Home Builders said this week. David Seiders, the builder trade group's chief economist, said he expects the share of condo starts to dip to about 35 percent by late 2007. "The condo share has already started to move down in the second quarter off its high," he said. While condo development ramped up from 2004-05, there was a slide in the construction of rental units during that same period, according to association data. And the renter share of total households, which had been roughly flat from 1988-95, dropped from about 36 percent in 1995 to 31 percent in 2005. "The multifamily sector has traditionally exhibited one heck of a lot of volatility," Seiders said, with a steep decline in starts in 1990-91 and a sharp pickup...