TD Economics recently released a report that showed the multifamily market improved over the past couple of years and some areas could see continued gains in the coming months.
From 2009 to 2011, multifamily housing starts increased nearly 60 percent while new construction of single-family homes dropped 2 percent during that time, according to the report. The group blamed the swing in momentum on significantly lower home prices and a heightened number of foreclosures, which forced more Americans to look toward rental properties.
In addition, property management companies in the South Atlantic region may have experienced a better multifamily recovery than other places in the country, the report explained. The Northeast has improved, as well, but due to more economic hardship in the South Atlantic, more Americans were living in multifamily dwellings already.
The report added that recovery may have a stronger improvement in some parts of the South Atlantic region due to many parts having little left to absorb. Specifically, Virginia and Maryland may not have significant returns compared to their southern neighbors. In addition, the Northeast may have more room to grow in the multifamily market.