Though single-family homes on the market don’t stay there for long, builders are not so quick to build more. A closer look at the market shows that young families are forming a relatively small number of new households. Instead, young people are opting to rent, thus creating an increase in apartment construction. Single-family homes to rent are not a viable market for builders either. According to Lawler Economic & Housing Consulting, of more than one million U.S. households, 80% were renters in 2013. To make matters worse, the trend in homeownership is moving downward among young people. Still, the economy is improving, and experts are optimistic that the increase in jobs will turn things around.
Read the full article here: Homes are selling quickly, so why aren’t builders building more? – Capitol Report – MarketWatch