Monday, November 21, 2011

MODULAR FACTORIES ARE CASHING IN ON APARTMENT CONSTRUCTION

Modular Home factories are keeping their production lines moving by moving into apartment housing. 
The number of permits to build apartments jumped to a three-year high last month. In 12 months, they’ve surged 63 percent.

Blame the housing bust, which left many people without the means, the credit or the stomach to buy. 

More people need apartments. The demand has driven up monthly rents. And apartment builders are rushing to cash in.


The overall home market remains depressed. Builders are still struggling. They broke ground on a seasonally adjusted annual rate of 628,000 homes last month, the government said Thursday. That’s barely half the pace that economists equate with a healthy market.

High unemployment, stagnant pay and waves of foreclosures have slowed sales of single-family homes, which make up about 70 percent of the home building market. Apartment construction is surging, but it’s a small portion of the industry.

It’s also worth keeping the increase in perspective: The growth in apartment construction is coming off extremely low levels. Last year, for example, only 146,000 apartments were built, the fewest since 1993. This year’s pace isn’t much more.

By comparison, in 2005, just before the housing market went bust, 258,000 apartments were built. Some signs suggest that builders could match that level over the next few years.

One such sign is that permits for apartment buildings, a gauge of future construction, have jumped more than 60 percent over the past year. That compares with just 6.6 percent growth in permits for single-family construction over the same period.

4 comments:

Randy Duggan said...

Very nice video. Do you have a contact who could give me permission to show it to others here in the West? I have said it before and will say it again. East of the Rockies they get it. West of Rockies they don't.

Coach said...

Randy, I found this great video on YouTube. You can share it directly from the video in the article or you can embed it in an email.

The East has a more traditional modular mentality than the West where innovation rules. Both coasts build great modular homes.

kristine@Home Builders Pittsburgh said...

Nice vid. Where can I download this video? I want to show this to my friends for they are a little bit busy surfing the net.

William said...

Coach - I see where ZETA has gotten on this apartment starts bandwagon and have done several posts on LINKEDIN regarding same.
See -- people read and people copy.