Multifamily construction projected to rise sharply in 2012

Posted by IronPlanet on Feb 14, 2012 7:32:00 AM

The recent trend of people renting homes rather than buying them outright is leading to a rise in multifamily construction, which includes apartment buildings and similar complexes. According to Bloomberg, multifamily construction is projected to help carry the construction industry through the coming year.

Two separate projections have targeted multifamily construction as jumping sharply throughout 2012. Bank of America predicts a 45 percent improvement over last year, which would be the highest level since 2008. Meanwhile, Moody's says that 310,000 new multifamily buildings will be constructed throughout the year, which would be a whopping 74 percent increase.

"Given the ongoing shift from owning to renting, there is increasing demand for multifamily construction," Michele Meyer, a senior economist at Bank of America, told the news source. "Foreclosures are transitioning people out of ownership."

Contractors who do work on apartment buildings and other multifamily complexes should likely prepare for an influx of job offers throughout 2012. One way that construction company owners can put themselves into a good position to succeed is by making sure they have the right tools for the job. The online auction website IronPlanet offers a wide variety of used construction equipment, including dump trucks, excavators and much more. These are backed by IronClad Assurance, which allows bidders to view a full inspection report before they purchase.

Topics: Construction, Industry Headlines