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Title: Millennials, Baby Boomers, and Rebounding Multifamily Home Construction

Citation Type: Journal Article

Publication Year: 2015

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Abstract: Construction of both single-family and multifamily homes collapsed with the onset of the housing crisis in 2006. Since then, single-family con - struction has moved up only modestly. Multifamily construction, however, has rebounded strongly, surpassing its pre-crisis level. Business-cycle fac - tors are partly responsiblethe crisis and slow recovery have constrained wages, driving more households to live in apartments, which are typically less expensive than single-family homes. But demographic factors such as marriage rates and improving health have proved equally important. Jordan Rappaport breaks down changes in the number of occupied multifamily units to determine which age groups have contributed most to the rebound in multifamily home construction. He finds that young adults have primarily driven the recent rebound, reversing their swing to - ward single-family homes in the early 2000s. In the long-run, however, baby boomers will likely drive construction as they age into their senior years and downsize from single-family homes.

Url: https://www.kansascityfed.org/~/media/files/publicat/econrev/econrevarchive/2015/2q15econreview.pdf

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Authors: Rappaport, Jordan

Periodical (Full): Federal Reserve Bank of Kansas City: Economic Review

Issue: 2

Volume: 100

Pages: 37-55

Data Collections: IPUMS USA

Topics: Housing and Segregation, Other

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