"Last year was the best year in history for home sales in general," says NAHB chief economist David Seiders, "and condos have great appeal to those who want ownership as well as all the benefits of apartment living." According to NAHB's numbers, just over one-fourth of all multifamily projects begun in 2003 were condominium properties. And the National Association of Realtors concurs on the demand for condominiums, reporting that the pace of condominium sales activity last quarter was the second highest on record.

The apartment market will not be left behind. Following a period of high vacancies over the last two years, NAHB believes the expected positive change in the economy will lead to a boost in the market. "As payroll employment rises and unemployment falls, household formations will increase and the demand for rentals will rise," Seiders says.