Rising interest rates are killing the single-family housing market, which in turn is powering a multifamily construction boom at a level not seen since 1986.
Nationally, permits to build multifamily housing, which included rental units, jumped 28 percent in August compared to July, while permits for single-family dwellings were up just 3.5 percent, according to a report released Tuesday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
The new findings come after many Americans rushed to buy homes during the pandemic, a time when mortgage rates fell to around 3 percent and the health crisis forced many to rethink life in an urban environment.
But now higher price tags for single-family homes, combined with the highest mortgage rates since 2008, are pricing buyers out of the market, leading to a dramatic slowdown in the housing market.
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