WASHINGTON -- The U.S. faces a shortage of rental apartments, according to the National Association of Home Builders (NAHB).
David Crowe, NAHB's chief economist, said, "Although we are forecasting construction of 133,000 new multifamily residences in 2011, that is far short of the 250,000 to 300,000 units that would be required to keep supply and demand in balance. In addition, we have yet to make up for the insufficient number of new apartments that should have been built over the last two years. The capital needed to finance that construction is just not available to apartment developers."
Multifamily developer Bill McLaughlin, an executive vice president of the Avalon Bay Company, a real estate investment trust headquartered in Washington, DC., said he sees demand for apartments increasing, but notes that the cutback in multifamily development in 2009 and 2010 has resulted in a "woefully inadequate supply" of new multifamily rentals to meet the rising demand.
Read the National Association of Home Builders' statement about apartment shortage.
Posted by Rich Christianson
Have something to say? Share your thoughts with us in the comments below.