Multifamily Driving Housing Recovery
Digested from “Fannie Mae: Multifamily gains boost housing”
HousingWire (3/23/15) Swanson, Brena
In the first quarter of 2015, multifamily housing has continued to drive the overall housing recovery, according to the most recent Fannie Mae “Economic and Housing Outlook” report.
Starts, completions and permits for privately owned housing have been flat or falling in the first quarter. Privately owned housing starts fell by 17 percent in February compared to January. And in March, the National Association of Home Builders/Wells Fargo Housing Market Index fell two points, to 53, which indicates that builders of single-family homes have less confidence in the market.
In comparison, this quarter, multifamily starts and permits have been increasing. The multifamily sector “has been driving the housing recovery, performing in the current expansion at a level consistent with activity witnessed prior to the recession,” the Fannie Mae report finds.
Fannie Mae had forecast that real residential investment growth would drop this quarter compared to the fourth quarter of 2014.