Apartment & Condominium Construction in the US
The Apartment and Condominium Construction industry has experienced mixed results over the five years to 2018. Low rental vacancy rates during the five-year period and increased investment in residential construction have fueled development in multifamily apartment starts. Additionally, declining rates of homeownership and a surge in lending to the multifamily sector have further boosted demand for new construction. However, following three consecutive years of double-digit growth, industry revenue began to cool off during the latter half of the five-year period as banks scaled back development lending, with the industry's deceleration exacerbated by growing construction trade labor shortages. Over the five years to 2023, industry revenue is projected to grow at a significantly slower rate due to an anticipated rise in rental vacancy rates and continued improvements in the general economy, which encourage consumers to purchase homes.
This industry is composed of general contractors responsible for constructing new multifamily residential units, including high-rise apartments, townhouses, condominiums and medium-to-high density units (i.e. units not separated by a ground-to-roof wall). All of the complexes may be constructed for sale as condominiums or cooperatives, or used as rental apartments. This industry does not include speculative builders or contractors who build on their own account for sale.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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