The Census Bureau’s report on new residential construction stated that multifamily permits rose slightly in June. Multifamily starts recovered most of last month’s fall while multifamily completions were reported to be at their lowest level since October 2023. It also reported that single family permits, starts and completions were all lower.
Multifamily permits continue slow climb
The number of permits issued for buildings with 5 or more units in June was reported to be 478,000 units on a seasonally adjusted, annualized basis. Permit issuance was up 8.1 percent from May’s revised (-2,000 units) figure. Permits were up 2.1 percent year-over-year and were up 9.3 percent from their trailing 12-month average.
In addition, 53,000 permits were issued in June for units in buildings with 2 to 4 units. This was unchanged from the revised (+2,000 units) figure for May. June permits for units in buildings with 2 to 4 units were up 10.4 percent from the year-ago level and were down 4.4 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 June was up 3.0 percent from the level in May and was up 5.5 percent from its level in June 2024. It came in at 514,000 annualized units. The three-month weighted moving average number of permits issued has been trending higher since February.
On a month-over-month basis, the three-month weighted moving average for multifamily permit issuance was up 9.2 percent in the Midwest and 6.8 percent in the South. Permit issuance was down 1.2 percent in the West and 9.2 percent in the Northeast.
When compared to year-earlier levels, the three-month weighted moving average of permits issued was up 20.4 percent in the Midwest, 8.8 percent in the West and 2.7 percent in the South. Permit issuance fell 6.9 percent in the Northeast.
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 recover
The preliminary June figure for multifamily housing starts in buildings with 5 or more units was reported to be 414,000 units on a seasonally adjusted, annualized basis, up 97,000 units from the revised (+1,000 units) figure for May. In this month’s report, April’s starts figure was revised lower by 22,000 units to 432,000 units.
Compared to the year-earlier level, multifamily housing starts in buildings with 5 or more units were up 25.8 percent. The reported starts figure was 17.0 percent above its trailing 12-month average.
Multifamily housing construction starts (two or more units per building) in June were up 5.2 percent from their May level for the country as-a-whole, based on three-month weighted moving averages. Starts fell 20.9 percent in the Midwest. Starts rose 2.6 percent in the South, 15.3 percent in the West and 29.2 percent in the Northeast. The three-month weighted moving average of starts was up 28.9 percent from the low point it reached in May 2024.
The three-month weighted moving average of starts was up 21.4 percent for the country-as-a-whole on a year-over-year basis. Compared to year-earlier levels, starts were up 117.6 percent in the Northeast, and 18.2 percent in the South. Starts fell 2.7 percent in the Midwest and 4.2 percent in the West.
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 sharply lower
The preliminary June figure for multifamily housing unit completions in buildings with 5 or more units per building was 383,000 units on a seasonally adjusted, annualized basis. Completions were reported to be down 21.0 percent (102,000 units) from the revised (-2,000 units) level of the month before. However, the completions figure for April was revised higher by 14,000 units to a level of 500,000 annualized units.
Compared to the year-earlier level, multifamily housing completions in buildings with 5 or more units per building were down 39.8 percent. Completions were 33.9 percent below their trailing 12-month average.
For the country as-a-whole, multifamily completions (two or more units per building) were down 10.3 percent month-over-month, comparing three-month weighted moving averages. The three-month weighted moving average of completions was up 14.5 percent in the Midwest. Completions fell 9.9 percent in the South, 15.5 percent in the Northeast and 16.5 percent in the West.
On a year-over-year basis, the three-month weighted moving average of completions in buildings with 2 or more units per building was down 23.4 percent nationally. Completions were up 20.3 percent in the Northeast, but completions fell 11.8 percent in the West, 27.4 percent in the South, and 51.2 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.
Census reported that there were 720,000 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 4,000 units from the revised (-9,000 units) level of the month before. It is 19.6 percent, or 175,000 units, lower than the number of units under construction one year earlier.
Single-family starts lower
The report on single-family housing construction stated that, on a seasonally adjusted basis, single family permits fell 3.7 percent month-over-month and 8.4 percent year-over-year to 866,000 units. Starts fell 4.6 percent month-over-month and 10.0 percent year-over-year from last month’s level to 883,000 units. After bouncing higher last month, completions were reported to be down 12.5 percent month-over-month and 15.5 percent year-over-year from last month’s revised (+11,000 units) level to 908,000 units. The reported number of single-family units under construction was down 2,000 units from the revised (+1,000 units) level of the month before at 622,000 units.
All data quoted are based on seasonally adjusted results and are subject to revision.
