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Apartments stay afloat in sinking economy

For the most part, economic news these days isn't good.

Analysts are predicting the national economy will sputter through the rest of the year with only limited growth, while the housing market struggles to recover from the fallout of the sub-prime mortgage crisis.

Where things are going well, however, is in the apartment market.

With projects either proposed or under construction in Ashland, Marlborough, Northborough and Sudbury, the market for apartments in MetroWest appears to be booming.

"Things are not robust, but they're nowhere near as bad as what has occurred in the single-family arena," said William McLaughlin, the senior vice president for development for the northeast for Avalon Communities, Inc. "(This region) was terribly under-supplied in rental housing for decades. We're still sort of catching up, so to speak."

One reason for the continued popularity of apartments boils down to simple affordability.

Despite housing prices that continue to tumble, renting is still cheaper for many than buying a single-family home or condominium, said Greater Boston Real Estate Board CEO Gregory Vasil.

"It's a choice with consumers whether to buy or to rent, and affordability is greater on the rental side," he said. "More people can afford to rent."

Perhaps more importantly, Vasil said, the apparent boom in apartment construction means towns will be able to offer residents a greater variety of housing options - a critical factor in maintaining the region's economic health.

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