Housing Recovery's Economic Benefit Dulled by Those Who Rent Digested From "Housing Recovery's Economic Benefit Dulled by Renters"
Investor's Business Daily (10/16/12) P. A1; by Jason Ma
The economic impact of housing recovery is going to pack a weaker punch than usual, warns the National Association of Home Builders -- which says steep demand for apartments will muffle the boom. The multifamily housing market is suffering from low supply in many markets, with the focus having been on homeownership over the past 10 years or so. Now, many Americans are skittish about owning; and those who are interesting in buying often find themselves sidelined by stiff underwriting standards or astronomical student loan debt. Demand for rental properties is expected to remain high, and builders are scrambling to ramp up production. While the activity will stimulate the economy, multifamily's growing share of the residential market will take away from the home builder sector, which packs a greater economic wallop. According to NAHB, construction of an average multifamily unit of housing generates only 1.2 full-time, year-long jobs in housing and related industries compared to the three full-time positions created by the average single-family project.
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