According to a new report from the Urban Institute, the share of new condominium builds has dropped to less the 5.4 percent of the overall construction market. This is the lowest rate in nearly 50 years.

Condos have traditionally been seen as an entry point for first-time homebuyers and a cost-effective way for those who prefer not to rent.

Analysts say that financing constraints for sponsors and builders as well as the rise of defect litigation – and a subsequent increase in insurance costs – have contributed to the decline