Today I was inundated with headlines and lead in lines from the blogs and radio all cheerily stating that “Home Construction Rates Rose in January,” only to then have an important fact later revealed. Single family home construction was down last month, while apartment building construction was up. Which means that builders can’t get loans and don’t have the demand to build new stand alone houses, but the rental market is hot enough to build new apartment complexes. New HOUSE construction is down because of the high level of inventory of existing homes for sale, all of which are still dropping in price. Even a cheap builder putting up smaller houses can’t compete with that. However, the rental market is ever increasing, and the demand for more rental units in the coming years will increase as well. Our population is growing, especially with people moving to Portland, and with home ownership rates dropping back to a normal level of 60% of the population, there are more renters now than ever.
Read the misleading CNN Money article whose headline prompted this post HERE.