The past four quarters all the growth in household formation has been among renters, according to worldpropertychannel.com, as the rate of absorption for unsubsidized, unfurnished apartments has been at its fastest pace in a decade. As of Sept., 2014, construction of apartment buildings with at least five units hit the highest monthly rate since 2006. Freddie Mac’s Chief Economist Frank Nothaft said, “The apartment market has been vibrant, reflecting the desire of many Millennials to live in an urban setting and retain locational flexibility. Unfortunately, if they’re looking to live in the larger cities, that’s where rents are rising the fastest, especially in the West or Northeast regions of the United States.” Condominium construction is on the low end of the scale, as MHProNews understands. ##

(Photo credit: bloomberg/businessweek.com–new multifamily construction)