New Apartment Construction Up Sharply

Posted December 22, 2011

In Apartments, California, Columbus, Commercial, Los Angeles, Ohio, Residential

CoStar News reports that starts of multiunit residential construction were up 32.2% from October 2011 to 230,000, which is the highest since September 2008. True, the number of new apartment starts is picking up, especially in the costal markets, but we’re not at peak level or historical averages. In my opinion, that’s a good so we don’t overbuild like we did 10- 20 years ago. On a year over year basis that’s a 180% increase over same month last year.

On a three month rolling average, multifamily and office were the only commercial real estate segments to report increases. While this is great news, starts remain well off their pre-recession levels, down 72% from their peak and 59% below their historical average.

Multifamily is down 63% from the peak and 44% from the historical average. Warehouse starts are down 85% from their peak and 75% below their historical average. Office is down 77% and 72% , retail down 77% and 64%, and lodging down 74% 57%.

CoStar News-Apartment Construction Lifts Housing Market

Commercial Real Estate

Commercial realtor

Commercial real estate with a focus on out-of-state investment property for my Southern California investors. My clients are Southern California local buyers looking for a return far better than what is available around here and that generally means out-of-state. We have expert property management, legal, and contracting services available.