While home building has been ramping up the housing supply remains well below long term averages and demand. Both multifamily and single family housing stock remain well below long term averages and are not nearly enought to house millions of millennials now entering the 30’s and starting families. Not to mention the empty nest baby boomers who have increasingly opted for smaller, more conveniently located quarter.
Multifamily construction has been increasing steadily since 2011 and construction in the US are now at a rate not seen in 30 years. Yet, due to the dramatic decline in single family construction since the sub prime mortgage collapse and recession of 2007, new households are forming at a greater level than U.S. housing can support resulting in a strong supply and demand imbalance.