Fannie Mae: Multifamily construction to jump

Construction for multifamily properties is expected to jump.

Government-sponsored enterprise Fannie Mae recently predicted that multifamily property construction could increase by approximately 30 percent this year, which may be important for U.S. property management companies.

Housing starts dropped during February, while multifamily building permits have improved during the first part of the year, according to HousingWire. Overall, the GSE noted that the 30 percent rise will be from last year's figure of 178,000 to a total of 231,000 by the end of 2012. In addition, the agency noted the figure should skyrocket again – to 278,000 in 2013.

In addition, the news source noted that consumer confidence is rising, and expectations of improving property pricing is starting to ramp up.

Citing the Federal Reserve, the news source said that mortgage debt for multifamily properties rose to $840.8 billion during the fourth quarter, which was an annualized rate of 1 percent. Despite this, it is still far below the high watermark of $853.2 billion during the third quarter of 2009.

Continued addition to the mortgage debt levels in the country could be positive if the debt is considered non-distressed.

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