Insight on Business

November 2013

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insight on CONSTRUCTION By Mar yB eth Mat zek Multi-family market hot Changing economics, demographics attract builders to apartments, condos 36 | Insight • N o v e m b e r 2 013 courtesy of Cypress Homes A partments and condos are more popular than ever, thanks to changing demographics and the lingering fallout from the downturn in the housing market. Construction of apartments and condos are at their highest levels across the country since the National Association of Home Builders started its Multifamily Production Index in 2003. According to McGraw Hill Construction, which studies building markets, multi-family construction hit its lowest level in 50 years between 2006 and 2009. In 2011, the market grew 34 percent and grew another 19 percent in 2012. The firm estimates the market to grow 14 percent this year. Multiple apartment and condo developments are going up across the New North with projects not only in growing areas such as Appleton's east and north sides, but also in central city areas, with projects being considered in the downtowns of Appleton, Oshkosh and Green Bay. Pete Moegenburg of Moegenburg Research, Inc. in Brookfield says across Wisconsin – as well as the surrounding states where his company does commercial appraisals and consulting – more consumers than ever are opting for apartments or condos. "For a number of reasons, people are shying away from home ownership," says Moegenburg, adding that people of different ages have different reasons for picking condos and apartments. Multi-family construction projects, such as apartments and condos, have been on the rise since 2009 and the market is expected to grow 14 percent in 2013, according to McGraw Hill Construction. "For a number of reasons, people are shying away from home ownership," says Pete Moegenburg of Brookfield-based Moegenburg Research, Inc. "For people over the age of 55, they are looking for ease of living. They don't want to worry any more about home or yard maintenance. They are choosing properties that are very close to what their homes were like, only on a smaller scale." That's something Greg Drusch, marketing manager for Cypress Homes in Appleton, has seen. The construction company not only builds single family homes, but also freestanding condo units. Those standalone units are a hit with condo buyers, he adds. "It's just like having your own house except you don't need to worry about cutting the lawn or taking care of the snow," he says. "People like knowing there is someone there who will take care of these chores or they like knowing they can go away for a month or two and everything will be taken care of with their home." w w w. i n s i g h t o n b u s i n e s s . c o m

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