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Apartment & Condominium Construction in Massachusetts - Industry Market Research Report

Apartment & Condominium Construction in Massachusetts - Industry Market Research Report

  • February 2018
  • 21 pages
  • ID: 5470460
  • Format: PDF
  • By Ibisworld

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Turn key: Strong economic growth has enabled the state industry to surpass national growth

Abstract

Apartment & Condominium Construction in Massachusetts
The Apartment and Condominium Construction industry in Massachusetts is estimated to grow over the five years to 2018. Industry revenue in Massachusetts has outpaced revenue growth for the industry at large over the past five years, fueled by strong economic growth, an expanding state population and robust gains in state employment. Steady demand conditions for apartment construction in the state and rising profit margins have encouraged new operators to enter the industry. Within the state, the Greater Boston area has been an especially important hub for industry activity. Apartment and condominium construction activity has surged throughout the Boston-Cambridge-Newton Metropolitan Statistical Area over the past five years as the ability to construct high-volume apartment complexes with relatively little land required is a principal advantage for industry operators in densely-populated areas such as Boston. Over the five years to 2023, the Apartment and Condominium Construction industry in Massachusetts is expected to continue growing, albeit at a slower rate. However, this slowdown in growth is not necessarily indicative of a decline in the state’s multifamily construction sector but rather a normalization of the broader housing market following a surge of pent-up demand.

This industry is composed of general contractors responsible for constructing new multifamily residential units, including high-rise apartments, townhouses, condominiums and medium-to-high density units (i.e. units not separated by a ground-to-roof wall). All of the complexes may be constructed for sale as condominiums or cooperatives or used as rental apartments. This industry does not include speculative builders or contractors who build on their own account for sale.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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