Apartment Construction Leads the Way
It’s no mystery that the construction market is closely linked to the mortgage market. Around the Lynnwood area, a low inventory of homes and increased mortgage rates are inspiring many developers to get busy with new developments. And, while we are seeing a significant increase in single family homes, it would seem that multi-family rental spaces are taking the helm in housing recovery.
With the recovering economy and the increase of job availability, a greater number of young people are finally able to move out of their parents’ houses and get a place of their own. This is a population that is eager to be on their own, but reluctant to settle down yet or take on the financial burden of a mortgage. For this reason, the Millennial population has been fueling a greater demand for affordable rental spaces.
Regions struck hardest by this demand for apartments have been places like Seattle, New York, Boston, and San Francisco. Such markets are on their ways towards building upwards of fifty percent more new homes in 2014, according to a study of building permits.
