Multifamily New Construction Highest Since 1987

Multifamily construction is at its highest level in almost 30 years, but experts expect it to dip in the near future:

New construction of buildings with more than five units jumped 28.6% in June, hitting its highest level since 1987.

But the spike likely has more to do with a surge of activity in New York City last month right before tax incentives for multifamily developments were scheduled to expire.

“We have to expect a big correction in July,” Pantheon Macroeconomics Chief Economist Ian Shepherdson said in a note to clients.

If you read the entire article you’ll see that single family construction is also on the rise, but the growth is relatively mild compared to multifamily construction and that trend is likely to hold for the foreseeable future.