Falling construction activity and housing shortages across the country have priced an increasing number of potential buyers out of the market, driving Americans to rent instead. While lower mortgage rates could pull some in from the sidelines, new tax laws have reduced incentives for Americans to own homes.
Meeting a rising demand for apartments could be particularly difficult in coastal cities, according to First American's chief economist, Mark Fleming, as younger renters move toward technology hubs. With the unemployment rate at historic lows and signs of upward pressure on wages, the housing market has been a soft spot in an otherwise humming economy.
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