The gradual decline in the number of multifamily units started for the rental sector went into reverse in the first quarter of 2018, with developers starting the most units since mid-2015. Rental demand is being supported by a lack of homes for sale, with the inventory of existing homes reaching a record low in April. However those tight market conditions are not leading to a rise in single-family housing starts, which have stalled thanks to high lumber prices and a shortage of labour. The lack of homes for sale is pushing up house prices but strict lending criteria, and flat mortgage applications for home purchase, argue against another boom.
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