When you walk around your new neighborhood, you may see cranes, construction workers and dumpsters filled to the brim. While you may get disgruntled with the traffic and noise from new apartment construction, this is actually great news for your area. A rental market analysis from the Multifamily Production Index found that conditions in the apartment and condominium market are still holding strong for the fifth straight quarter.
The apartment sector has been able to bounce back since the downturn, so development is now at a steady rate, with fewer vacancies and opportunity for growth. Depending on where you are living, you may have already noticed an influx of new buildings and complexes. Now that you’ve got your lease locked in, it’s time to consider the positive effects that this new apartment construction will have on your neighborhood (or, if you haven’t yet chosen an apartment, you may want to search in an area ripe with growth). New, modern buildings may attract new businesses, as well as more people. The construction can add to the diverse landscape and make the streets in your neighborhood cleaner.
Since the end of 2010, construction in the multifamily market has recovered, but that doesn’t mean your neighborhood is going to change overnight. First, vacant apartments will likely be filled, and according to the Multifamily Vacancy Index, this rate is improving. Since 2009, the rate of vacant rental units has decreased, and then stayed at a steady rate through 2011 and 2012. You should expect to see more construction in the future as builders and developers work through rising prices of materials and a shortage of workers.