More Sustainable Housing Options Could Bolster Economy

By Paula MeltonBloomberg has declared 2011 “the worst year on record for single-family home construction,” but while the outlook for construction generally and single-family housing in particular remains weak, the multifamily market has strengthened as foreclosures and other economic pressures have led many to rent rather than own.According to the U.S. Commerce Department, housing starts rose sharply near the end of the year as permits for multifamily construction increased 25.3% between October and November 2011. Although those numbers fell again in December, the American Institute of Architects (AIA) reported growth in its Architecture Billings Index, with the multifamily sector leading the increase. Housing starts represent construction projects that have just begun, while architecture billings represent construction that is likely to begin in 9 to 12 months—suggesting that multifamily design and construction could sustain the industry through 2012.