The Census Bureau’s report on new residential construction stated that multifamily permits fell slightly in July. Multifamily starts added to last month’s gains while multifamily completions were reported to slide. It also reported that single family permits, starts and completions were all higher after falling last month.
Multifamily permits lower
The number of permits issued for buildings with 5 or more units in July was reported to be 430,000 units on a seasonally adjusted, annualized basis. Permit issuance was down 9.9 percent from June’s revised (-1,000 units) figure. Permits were down 1.8 percent year-over-year and also down 1.8 percent from their trailing 12-month average.
In addition, 54,000 permits were issued in July for units in buildings with 2 to 4 units. This was up 4,000 units from the revised (-3,000 units) figure for June. July permits for units in buildings with 2 to 4 units were up 1.9 percent from the year-ago level but were down 2.9 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 July was down 2.2 percent from the level in June but was up 1.6 percent from its level in July 2024. The three-weighted moving average for permits came in at 500,000 annualized units. This month saw the first decline in the three-month weighted moving average number of permits issued since February.
On a month-over-month basis, the three-month weighted moving average for multifamily permit issuance was up 7.1 percent in the Northeast and 6.5 percent in the Midwest. Permit issuance was down 2.5 percent in the South and 12.4 percent in the West.
When compared to year-earlier levels, the three-month weighted moving average of permits issued was up 22.4 percent in the Midwest and 1.7 percent in the South. Permit issuance fell 4.9 percent in the West and 10.8 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 jump again
The preliminary July figure for multifamily housing starts in buildings with 5 or more units was reported to be 470,000 units on a seasonally adjusted, annualized basis, up 49,000 units from the revised (+7,000 units) figure for June. This is the highest starts figure recorded since May 2023.
Compared to the year-earlier level, multifamily housing starts in buildings with 5 or more units were up 27.4 percent. The reported starts figure was 30.1 percent above its trailing 12-month average.
Multifamily housing construction starts (two or more units per building) in July were up 9.8 percent from their June level for the country as-a-whole, based on three-month weighted moving averages. Starts fell 20.2 percent in the West and 15.0 percent in the Northeast. Starts rose 18.5 percent in the South and 77.1 percent in the Midwest.
The three-month weighted moving average of starts was up 22.7 percent for the country-as-a-whole on a year-over-year basis. Compared to year-earlier levels, starts were up 64.0 percent in the Midwest, 36.3 percent in the South and 6.9 percent in the West. Starts fell 17.9 percent in the Northeast
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 reported lower
The preliminary July figure for multifamily housing unit completions in buildings with 5 or more units per building was 385,000 units on a seasonally adjusted, annualized basis. Completions were reported to be down 2.8 percent (11,000 units), but the previous month’s completions figure was revised higher by 13,000 units so the completions figure is actually higher than that reported last month.
Compared to the year-earlier level, multifamily housing completions in buildings with 5 or more units per building were down 28.8 percent. Completions were 31.1 percent below their trailing 12-month average.
For the country as-a-whole, multifamily completions (two or more units per building) were down 8.6 percent month-over-month, comparing three-month weighted moving averages. The three-month weighted moving average of completions was down in all regions, falling 4.1 percent in the Midwest, 5.7 percent in the South, 11.1 percent in the Northeast and 13.7 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 716,000 units under construction in buildings with 5 or more units per building on a seasonally adjusted annualized basis. This was reported to be up by 6,000 units from the revised (-10,000 units) level of the month before. It is 19.4 percent, or 172,000 units, lower than the number of units under construction one year earlier.
Single-family completions higher
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 7.9 percent year-over-year to 870,000 units. Starts rose 2.8 percent month-over-month and 7.8 percent year-over-year from last month’s revised (+30,000 units) level to 939,000 units. After falling sharply last month, completions were reported to be up 11.6 percent month-over-month but down 6.1 percent year-over-year from last month’s revised (+8,000 units) level to 1,022,000 units. The reported number of single-family units under construction was down 6,000 units from the revised (+5,000 units) level of the month before at 621,000 units.
All data quoted are based on seasonally adjusted results and are subject to revision.
