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Demand for apartments in Boston spurs new construction

October 26, 2010 - More people in the city of Boston are moving into rentals, while others still are searching for apartments. That increased demand has encouraged many commercial builders to take another look at what kinds of buildings they're constructing.

The Boston Globe reports that builders in the city are revamping their existing plans for commercial office buildings and condominiums and instead pushing through plans for apartments. There are thousands of proposed units currently making their way through the city government, worth about $1 billion in total, said the report. While not all of the projects have received financing, builders tell the paper that in the current market, banks are much more likely to fund residential than commercial projects.

"The apartment-building industry is really coming together and in better shape than other parts of the economy," Gregory Vasil, chief executive of the Greater Boston Real Estate Board, told the Globe.

Builders around the country have also noticed more people moving to apartments in light of the housing market's struggles, leading them to start construction on more rental units. The National Association of Home Builders reported earlier this month that construction starts on multifamily units rose to a seasonally adjusted annual rate of 160,000 units - the highest level seen since February 2009.
 

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