Apartment construction improves in Philadelphia area

Apartment construction ticked up in Philadelphia's surrounding area.

The Philadelphia area multifamily market could experience an increase in development, as rental options become a more popular choice from consumers and market fundamentals improve, according to Philadelphia newspaper The Inquirer.

Suburban Philadelphia should experience a gain in apartment development, despite the housing market's improvements, overall. Specifically, the South Jersey area should receive more than 1,000 units, while Center City should get more than 3,000, the news source noted, citing a report from Marcus & Milichap. The suburban counties in the Philadelphia area could receive an additional 2,500 units.

"Household formation is reviving, despite sluggish employment growth, and the recovery in demand is spreading from rental units to the owner-occupied sector," Nigel Gault, economist at IHS Global Insight, told the news source.

Continued improvements in the lending situation, both locally and nationally, have helped gains in the multifamily industry. The news source added that one company plans to add 500 apartment units in the area for approximately $120 billion. The national picture saw lending increase by 60 percent, citing information from the Mortgage Bankers Association.

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