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Jan
15

Not Enough Homes To Go Around

By on Jan 15

Many people enjoy the freedom of renting: You don’t have to deal with home improvements or come up with extra cash when something breaks. You can even pick up and leave as jobs come and go or as the mood strikes. Now, with the creation of new jobs in a slowly recovering economy, there is an increase demand by new renters wanting to take on the joys of apartment living. However, the lack of credit needed to finance new apartment developments is causing some rents to increase and may lead to a shortage in the near future.

According to the National Association of Home Builders (NAHB) chief economist, David Crowe, we will likely see the construction of 133,000 new apartments across the U.S. in 2011. However, to keep the demand in balance there needs to be between 250,000 and 300,000 units constructed.

This pressure is felt across all types of multi-family housing. Even affordable rental housing, the kind that is primarily driven by the Low-Income Housing Tax Credit program, is feeling the strain. According to Robert Greer, president of Michaels Development Company, the affordable housing market is rebounding. However, the depth of the current recession means that there are more people needing this type of assistance than there are apartments.

So, what do you think? Will increasing rents and lack of supply lead you to consider giving up your freedom to purchase a house?

For more information about the housing market, visit the

NAHB website.

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