Home building is once again contributing to the nation's economic growth, and a major factor behind that growth has been the expansion of multifamily construction such as apartment communities and for-sale condominiums.

Home ownership remains down, especially among younger households. Additionally, the overall number of households — home owners and renters combined — is lower than it should be considering U.S. population growth.

With a boom in household formation expected in the years to come, most of them are expected to start out as renters as economic and labor market conditions improve. The result for the building industry has been an increase in the demand for rental units, which in turn has reduced rental vacancy rates and propelled new multifamily construction.

There are some potential "wild cards" in the multifamily housing forecast. The future of the Low-Income Housing Tax Credit, for instance, could be affected by tax reform on Capitol Hill. The tax credit has been a major development tool that ensures the financing of affordable housing.

Source: US News and World Report