Real Estate
Builders Shift to Apartments as US Mortgage Rates Deter Homebuyers
- Multifamily construction rose in August to highest since 1986
- Single-family demand has been waning as mortgage rates rise
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As rising mortgage rates sideline aspiring US homebuyers, the market’s multifamily segment appears to be gaining some steam.
New construction of multifamily properties -- which include rental apartments and are therefore less sensitive to rate-induced shifts in demand -- jumped 28% in August to the highest level since 1986, a government report showed Tuesday.