Multifamily Market Buzz: New Construction Trend?

Here is more anecdotal evidence of strong renter demand and rising rents in the urban core. Today's edition of USA Today.

Renters can't escape housing foreclosure crisis, By Stephanie Armour, USA TODAY

"The health of the rental market is critical for several reasons. Rising demand for rentals can spur construction of apartment buildings, a trend that's already occurring in some metro markets. And the need for more rental properties can energize urban development, because higher commuting costs have translated into growing demand for rentals that are near urban employment centers rather than in outlying suburbs."

Another key takeaway: The shadow market is overly hyped in most markets. Banks do not want to be landlords. And renters are going to be cautious of renting in homes where they might soon be displaced.

Don't miss the boat on renovation and construction opportunities. The ability to raise rents drives both of these trends.

Want to learn more on this urban living trend? Check out the latest issue of MFE and the article entitled Class Dismissed along with the cover story, The Transformer featuring Kevin McGowan of Blue Urban.