House prices in the States slowed more than expected in April, according to the latest Case Shiller index. But research by Morningstar indicates that the housing market is picking up nicely. 

The chart shows two different types of housing starts: One, for multifamily projects like high rise buildings and apartment and second, single-family homes.

The chart shows that the prices on single-family dropped heavily in 2008 and now have come back slightly. Multifamily homes, is a different story.  They have managed to recover everything they lost in the recession.  There are several reasons why people may have found those “type” of homes attractive. It could be because of the lower price points, the ability to be closer to the city, and therefore less of a need to drive. All of those things could be factors driving people towards the multifamily homes.

The trend with multifamily houses means that the prices are about to hit the same level as before the financial crisis and it is expected to continue. Also the single-family homes are expected to get better as more and more young people begin to afford a home and have a family.