Aug. 12, 2016
New housing supply in the U.S. relative to demand as measured by Trulia, a residential real estate website for home buyers, sellers, renters and real estate professionals, is down about 15% below its historical average, according to their chief economist Ralph McLaughlin. But as construction of apartments has almost tripled in growth over the past five years, multifamily starts in five or greater unit condo buildings have been the slowest to recover in the housing market. One of the reasons for the slowdown is exposure to construction defects lawsuits that drive up the cost of condo projects. Suppliers to condominium projects also need to be aware of some peculiarities of these projects that make securing mechanic’s lien or bond rights more complicated and expensive, or in some cases not possible.