Tower cranes are once again appearing across the Seattle skyline, which may be a sign of the construction industry looking up. Tower cranes, however, are not the only evidence of improvement – apartment construction and permit applications are looking up as well.
In November 2011, builders broke ground on apartments and single family residences at an annualized rate of 685,000 units. This represents an increase of 9.3% from October 2011, and the highest annual rate of housing starts since April 2010. This increase is due in large part to large increases in the number of apartment projects, which is being driven by across the board increases in rent. If this pace is maintained, for the first time since the “Great Recession” began in 2007, residential construction will cause expansion rather than contraction of the U.S. economy.
Komo News reported that apartment construction rose 32% in November! While single-family home construction only rose 3.2%. Additionally, permit applications for apartment construction increased by 16% in November, which has (some) economists looking up for the future of the housing market.