Big Boom for Apartments Nationally and Locally

Last week, the U.S. Commerce Department reported that construction of apartments was on the rise, with permits for apartment construction at their highest level in three years.

With construction of new single-family homes at a standstill, it appears that developers are finding apartments to be a more lucrative investment.

From a report by the Associated Press:

“Given continued constraints on homeownership and rising rents across the country, the trend towards multi-unit construction is one that we expect to continue going forward,” said James Marple, senior economist at TD Economics.

In Odenton, this trend appears to be on display.

With the Odenton Town Center finally starting to become a reality, no fewer than four high-profile projects are moving forward with apartment components.

While there are some new townhouses appearing in spots including the Town Center Commons and Bonaventure projects on Annapolis Road, most of the new housing stock under construction is coming in the form of for-rent properties.

Economics has a lot to do with it, according to developers. Many people are underwater in their current homes, and aren’t in a position to buy anything new. Plus, developers know that apartments can be converted into for-sale condominiums if market conditions change.

Here in Odenton, there is demand for apartments because there hasn’t been a ton of supply. Many new workers from Fort Meade have been seeking apartments to live in, because they own homes in Northern Virginia but aren’t yet in a position to move permanently. So, there are some workers who’ve decided to stay in an apartment here and head home on weekends.  

Here are four projects with apartments that are under construction right now in Odenton.

Village at Odenton Station—If you’ve been by the MARC station, you’ve seen this one coming out of the ground. The Dolben Companies is renting 235 apartments with more than 50,000 square feet of ground-floor retail. Apartments could be done and fully leased by the end of 2012.

The Haven At Odenton Gateway—Johnson Development is building 250 apartments near the Sappington Station and Annapolis Road, as part of a big mixed-used complex that includes medical offices. Construction is already moving along quickly. Look for leasing to start early next year.

—Formerly called “The Alta at Town Center,” this project by the Hogan Cos. is expected to feature more than 200 apartments and some ground-floor retail, across from the . The public is expected to get an update on the progress at the next meeting of the Odenton Town Center Plan Oversight Committee on Nov. 29.

Flats 170 at Academy Yard—StonebridgeCarras and Bozzuto Group are redeveloping the old Nevamar facility on Telegraph Road, and the first phase will include 369 apartments at the north end of the site. It’s not evident now, but demolition has already begun on the one Nevamar building to pave the way for the apartments. Eventually, the entire site will be redeveloped with retail, offices and possibly more homes.