Will a recent surge in apartment building help rent prices?
Apartment construction jumped by 35.3 percent in the Northeast this June.
Prepare to see a lot of apartment complexes on the horizon, as The Commerce Department reported Friday that apartment construction jumped by 35.3 percent in the Northeast this June.
This is the fastest pace for apartment construction in 28 years, the report states, with developers responding to this year’s substantial job growth.
The trend isn’t limited to the Northeast, but is strongest there.
Employers added 2.9 million jobs this year and unemployment has dropped to 5.3 percent, creating more paychecks and more demand for housing. The growth of apartments in the Northeast could be a result of the high number of renters there. The Associated Press reports that residual financial stress from the recession has also caused more Americans to choose renting over buying. The number of American homeowners dropped to 63.8 percent this year, the lowest level since 1989.
The latest report mirrors local trends, including a generational divide in homeownership due largely to student debt. And Boston is certainly no exception to the Northeast’s building surge, especially with the city approving millions of dollars worth of housing for low and middle-income residents.
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See how much East Boston has changed through the years:
Will the surge in new apartment stock cause the price of homes or rents to go down?
Only time will tell, but we Bostonians can only hope.
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