The average number of apartments built per year has hit a new record in the last year, according in data from the U.S. Bureau of Labor Statistics.
The data also showed that new construction jumped 10% in the first quarter of 2019.
That’s a bigger jump than the national average.
It’s a testament to the U of I’s growth and momentum that its residential apartment market has rebounded to a record pace of 5,000 new units a year, said Mark Schulman, the agency’s director of research and analysis.
A typical apartment can cost about $1 million to build, which makes it the most affordable place to live in the country, he said.
That was a big part of why the nation’s housing market has bounced back so strongly since the recession.
New housing starts rose 8.4% last year to a year-over-year average of 4.7, while the number of new permits rose 10.2%.
But that’s a modest rate compared to the nation as a whole.
That rate was 15.9% in July 2020.
The average annual rent rose by 2.3% to $1,724, according the BLS, with rents in some markets up more than 50%.
But that’s only one factor driving the jump in prices, which are now among the highest in the U, said Michael Johnson, a senior economist at the Brookings Institution, a nonpartisan Washington think tank.
In some markets, prices are soaring faster than incomes, said Johnson, who has studied apartment construction for more than 30 years.
New apartment construction has helped drive up rents in a few of the nations fastest-growing cities, including New York and San Francisco, and in some of the most distressed, including Detroit and Pittsburgh.
The boom in new construction is not unique to the United States.
It’s been a trend across the globe.
The average annual growth rate of new housing units in Canada, the United Kingdom and Mexico was 7.3%.
That’s not surprising, said Steven Kaplan, senior vice president at real estate research firm RealtyTrac.
There’s just a higher rate of growth in the developed world.
“The demand for housing is just outstripping supply,” he said in a statement.
The trend is part of the reason why new housing in the United Sates has grown at a much faster rate than in the rest of the developed countries, according a recent report by the real estate consulting firm Reis Group.
The U.K. is also experiencing a housing boom.
The nation’s biggest cities have seen record-breaking growth in apartment construction over the past year, including a 13% increase in Seattle alone, according Reis.
That includes new apartments, condos and townhouses built in the past three years, which together account for about half of the countrys apartment growth, said the report.
The surge in new housing has boosted home prices, boosted employment and helped boost the U’s economic recovery, the report found.