The Census Bureau’s new residential construction report stated that multifamily starts moved higher after last month’s fall. However, both multifamily permits and completions were lower for the month.
The number of permits issued for buildings with 5 or more units in October was reported to be 393,000 units on a seasonally adjusted, annualized basis. Permit issuance was down 3.5 percent from September’s revised (+7,000 units) figure. Permits were down 20.9 percent from their year-earlier level and were also down 11.0 percent from their trailing 12-month average.
In addition, 55,000 permits were issued in October for units in buildings with 2 to 4 units. This was down 2,000 units from the revised (-3,000 units) figure for September. October permits for units in buildings with 2 to 4 units were up 7.8 percent from the year-ago level and were up 3.6 percent from their trailing 12-month average.
Regional data for multifamily housing is only reported for structures with two or more units. “Structures with 5 or more units” is not broken out as a separate category. Since the regional data is highly volatile and is frequently revised, it is examined here based on three-month weighted moving averages. This averaging helps smooth out the month-to-month variations in the data so that underlying trends are more visible.
Nationally, the three-month weighted moving average for permits issued for multifamily housing in October was down 3.0 percent from the level in September and was down 16.4 percent year-over-year. The three-month weighted moving average for permits came in at 462,000 annualized units.
On a month-over-month basis, the three-month weighted moving average for multifamily permit issuance was up 3.6 percent in the West and 0.5 percent in the Northeast. Permit issuance fell 6.2 percent in the Midwest, and 6.3 percent in the South.
When compared to year-earlier levels, the three-month weighted moving average of permits issued was up 1.2 percent in the Midwest. Permit issuance fell 16.7 percent in the Northeast, 18.0 percent in the South and 22.2 percent in the West.
The following chart shows the three-month weighted moving averages of permits by region for the last 37 months. It also shows the un-averaged total number of multifamily permits issued for the country as-a-whole.
Multifamily construction starts climb
The preliminary October figure for multifamily construction starts in buildings with 5 or more units was 326,000 units on a seasonally adjusted, annualized basis. This was reported to be up 9.8 percent (29,000 units) from the revised (-20,000 units) figure for September. In addition, the August starts figure was revised higher by 7,000 units to 339,000 units.
Compared to the year-earlier level, multifamily housing starts in buildings with 5 or more units were down 12.6 percent. The reported starts figure was 6.6 percent lower than the trailing 12-month average.
Multifamily housing construction starts (two or more units per building) in October were down 3.0 percent from their September level for the country as-a-whole, based on three-month weighted moving averages. Starts rose 36.1 percent in the West and 3.0 percent in the Midwest. Starts fell 12.1 percent in the South and 23.2 percent in the Northeast.
The three-month weighted moving average of starts was down 12.7 percent for the country-as-a-whole on a year-over-year basis. Compared to year-earlier levels, starts were up 58.3 percent in the Northeast but down 7.0 percent in the West, 20.7 percent in the South and 29.5 percent in the Midwest.
The following chart shows the three-month weighted moving average of starts by region for the last 37 months. It also shows the un-averaged total number of multifamily starts for the country as-a-whole.
Multifamily housing completions down
The preliminary October figure for multifamily housing unit completions in buildings with 5 or more units per building was 615,000 units on a seasonally adjusted, annualized basis. Completions were reported to be down 9.0 percent (61,000 units) from the revised (+5,000 units) level of the month before. In addition, the August completions figure was revised 20,000 units lower to 715,000 units.
Compared to the year-earlier level, multifamily housing completions in buildings with 5 or more units per building were up 61.4 percent. Compared to the trailing 12-month average, completions were up 10.4 percent.
For the country as-a-whole, multifamily completions (two or more units per building) were down 1.9 percent month-over-month, comparing three-month weighted moving averages. The three-month weighted moving average of completions was up 18.3 percent in the West, 4.2 percent in the Northeast and 3.4 percent in the Midwest but down and 14.3 percent in the South.
On a year-over-year basis, the three-month weighted moving average of completions in buildings with 2 or more units per building was up 55.4 percent nationally. Completions were up 119.6 percent in the Northeast, 64.7 percent in the West, 48.0 percent in the South and 19.4 percent in the Midwest.
The three-month weighted moving average of completions by region for the past 37 months are shown in the chart below. It also shows the un-averaged total number of multifamily completions for the country as-a-whole.
The number of multifamily units reported to be under construction continued its downward trend in October. Census reported that there were 825,000 units under construction in buildings with 5 or more units per building on a seasonally adjusted annualized basis. This was reported to be down by 29,000 units from the revised (+8,000 units) level of the month before. It is 19.2 percent, or 191,000 units, lower than the number of units under construction one year earlier.
Single-family permits higher as starts edge lower
The report on single-family housing construction showed that, on a seasonally adjusted basis, single family permits rose 0.5 percent month-over-month but fell 1.8 percent year-over-year to 968,000 units. Starts fell 6.9 percent month-over-month and 0.5 percent year-over-year from last month’s revised (+15,000 units) level to 970,000 units. Completions were down from last month’s level, falling 1.4 percent month-over-month and 0.2 percent year-over-year to 986,000 units. The reported number of single-family units under construction was unchanged from the revised (+2,000 units) level of the month before at 644,000 units.
All data quoted are based on seasonally adjusted results and are subject to revision.
