From a small northwestern observatory…

Home ownership rates have plummeted from pre-recession “bubble” peaks, and have recently begun stabilizing around the pre-bubble levels.  Before, during, and particularly after the recession, apartment construction and absorption soared.  Many (most?) analysts feared an overbuilding in apartments, necessitating a retraction in construction until excess units could be absorbed.

The one very small black swan we all missed in that prediction was the shortage of homebuyer credit and the difficulty for buyers — particularly first-time homeowners — to accumulated down payments.  Admittedly, the zero-down world of the housing bubble was unhealthy for the stability of the market, but the job-market of the past few years has made it difficult for younger buyers to enter the homeownership market.

Diana Olick Olick wrote a great piece for CNBC over the holidays about the unexpected strength of the apartment market.  She details both the current state of the apartment market as well as the causes and trends in that arena.  You can view the original article here.