It has already been established that with the housing market loss, the apartment market gains. And lots of states and cities are joining the apartment building bandwagon, the latest of which is Boston.

In Boston, developers are having a hard time gaining financing for new office towers and high-rise condominiums and this has prompted a dramatic increase in proposals for apartment complexes. There are currently more than a dozen pending projects amounting to $1 billion. Though still in need of financing, these projects will provide additional rental units that the whole city is clamoring for.

There has been a shortage in apartments, which in turn led to an increase in rents. The need for more apartment units, which has been long time coming given the housing market crash, further proves that the apartment building industry is in a far better shape than the rest of the economy.

Several of the proposed projects are actually former luxury condominium projects that have been stalled when the market crashed two years ago. Since more and more companies are choosing to go with existing buildings that offer low rents, office building has become practically non-existent. Same goes for condominiums.

The planned apartments are placed in downtown Boston, which has a lower than national average vacancy rate at 5%. The national average is sitting at 7%. In the third quarter, Greater Boston marked the lowest vacancy level in 21 months with 5.4%.

In the same quarter, with a surge n demand, rents also averaged $1,730 per month. This is a 1.3% increase than the previous quarter.

Currently, 234 units in South Boston’s Waterside Place have been approved by the redevelopment authority. In Chinatown, the approved number at the former Dainty Dot hosiery factory at 120 Kingston St. totals 200 units. Other proposals waiting approval are a 395-unit residential complex in Kensington, a 128-unit complex in Arlington St., and a 184-unit building on A Street.