The Census Bureau’s report on new residential construction stated that multifamily permits fell again in August. Multifamily starts were down sharply from the high level reported last month while a big increase was reported for multifamily completions. It also reported that single family permits and starts fell but completions were higher for the month.
Multifamily permits lower again
The number of permits issued for buildings with 5 or more units in August was reported to be 403,000 units on a seasonally adjusted, annualized basis. Permit issuance was down 6.7 percent from July’s revised (+1,000 units) figure. Permits were down 10.8 percent year-over-year and also down 7.9 percent from their trailing 12-month average.
In addition, 53,000 permits were issued in August for units in buildings with 2 to 4 units. This was down 2,000 units from the revised (+1,000 units) figure for July. August permits for units in buildings with 2 to 4 units were down 7.0 percent from the year-ago level and were down 4.9 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 August was down 4.7 percent from its level in July and was down 5.2 percent from its level in August 2024. The three-month weighted moving average for permits came in at 478,000 annualized units.
On a month-over-month basis, the three-month weighted moving average for multifamily permit issuance was up 9.4 percent in the West and 3.8 percent in the Northeast. Permit issuance was down 10.4 percent in the Midwest and 11.4 percent in the South.
When compared to year-earlier levels, the three-month weighted moving average of permits issued was up 10.4 percent in the West and 4.2 percent in the Midwest. Permit issuance fell 12.2 percent in the South and 16.3 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 lower
The preliminary August figure for multifamily housing starts in buildings with 5 or more units was reported to be 403,000 units on a seasonally adjusted, annualized basis, down 50,000 units from the revised figure for July. In addition, the very strong starts figure initially reported for July, which had been viewed with some skepticism, was revised lower by 17,000 units. However, the June multifamily starts figure was revised higher by 12,000 units.
Compared to the year-earlier level, multifamily housing starts in buildings with 5 or more units were up 15.8 percent. The reported starts figure was 9.2 percent above its trailing 12-month average.
Multifamily housing construction starts (two or more units per building) in August were down 0.4 percent from their July level for the country as-a-whole, based on three-month weighted moving averages. Starts fell 24.1 percent in the Northeast and 7.4 percent in the South. Starts rose 11.3 percent in the Midwest and 25.9 percent in the West.
The three-month weighted moving average of starts was up 16.2 percent for the country-as-a-whole on a year-over-year basis. Compared to year-earlier levels, starts were up 47.6 percent in the Midwest, 42.2 percent in the West and 8.5 percent in the South. Starts fell 24.1 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 see massive revisions
The preliminary August figure for multifamily housing unit completions in buildings with 5 or more units per building was 503,000 units on a seasonally adjusted, annualized basis. Completions were reported to be up 10.8 percent (49,000 units). In addition, July’s completions figure was revised higher by 69,000 units and June’s completions figure was revised higher by 46,000 units. Therefore, this month’s completions figure is 118,000 units (30.6 percent) higher than the preliminary figure initially reported for July.
Compared to the year-earlier level, multifamily housing completions in buildings with 5 or more units per building were down 28.7 percent. Completions were 9.4 percent below their trailing 12-month average.
For the country as-a-whole, multifamily completions (two or more units per building) were up 5.1 percent month-over-month, comparing three-month weighted moving averages. The three-month weighted moving average of completions was up 40.7 percent in the Midwest and 12.6 percent in the West. Completions were down 2.1 percent in the South and 27.2 percent in the Northeast.
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 25.0 percent nationally. Completions were up 27.8 percent in the Midwest but completions fell 1.4 percent in the West, 12.9 percent in the Northeast and 48.7 percent in the South.
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 686,000 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 7,000 units from the revised (-23,000 units) level of the month before. It is 20.2 percent, or 174,000 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 fell 2.2 percent month-over-month and 11.5 percent year-over-year to 856,000 units. Starts fell 7.0 percent month-over-month and 11.7 percent year-over-year from last month’s revised (+18,000 units) level to 890,000 units. Completions were reported to be up 6.7 percent month-over-month and 5.6 percent year-over-year from last month’s level to 1,090,000 units. The reported number of single-family units under construction was down 13,000 units from the revised (+3,000 units) level of the month before at 611,000 units.
All data quoted are based on seasonally adjusted results and are subject to revision.
