Chicago New Condos and Apartments Market Remains Strong

December 11, 2012

new chicago apartments

According to the National Association of Home Builders, the Multifamily Production Index remains at a steady 52. The Multifamily Production Index (MPI) measures builder and developer sentiment regarding the condo and apartment market on a scale of 0 to 100.

A reading above 50 means that more builders feel multifamily construction is improving as opposed to getting worse. The MPI measures three key elements of the condo and apartment market: market-rate rental units, ‘for-sale’ units and construction of low rent units.

“The multifamily market has recovered substantially since the end of 2010,” said NAHB chief economist David Crowe. “Our baseline forecast calls for further steady growth in the rate of multifamily production.”

Investors are scrambling to close deals on Chicago new condos and apartments before year’s end. Currently, more than 1,600 apartment units are under construction in the suburbs, the largest increase in nearly a decade. Developers are also expected to add more than 7,000 apartment units to the city of Chicago by December 2014.

Condos and apartments aren’t the only type of housing experiencing a high rate of growth. Townhome construction has greatly increased in the past few months with a total of 17,000 starts in the second quarter of 2012 versus 11,000 starts for the same time last year.

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