The American housing market made a strong post-recession recovery, and has even thrived in some areas of the country. Now, however, the residential real estate recovery can be described as sluggish at best with housing market taking a huge step back due to November’s decreasing housing rates, the lowest they’ve been since August according to Moody Analytics.
Ironically enough, the construction of single-family homes fell to a 677,000 rate, while work on apartment buildings and multifamily homes jumped 6.7 percent to a 351,000 rate.
While some economist attribute falling housing rates to the abnormally cold winter temperatures (according to the National Climatic Data, last month was the coldest November since the year 2000), many feel simply feel that times have changed. Home ownership, it seems, is being slowly replaced by new luxury apartment rentals.
Many people choose to rent a luxury apartment for several reasons, including a more affordable cost of living and the convenience of flexible lease options. While city apartments may seem costly at first glance, their expense is comparable, if not far less than owning a home.
Millennials, college graduates before the ages of 25 and 34, choose to find lofts for rent at affordable rates in both metropolitan and suburban areas. For many in the age group, the possibility of owning a home in the near — or far — future is slim to nil due to crushing student loan debt. However, they are able to find lofts for rent at affordable rates due to their increased popularity.