The Census Bureau’s report on new residential construction stated that multifamily permits moved higher for the first time in 4 months. Multifamily starts, which have been bouncing up and down month-by-month, fell this month. Multifamily completions continued their slide. It also reported rising single family permits and starts were lower but completions rose.
Multifamily permits higher
The number of permits issued for buildings with 5 or more units in March was reported to be 445,000 units on a seasonally adjusted, annualized basis. Permit issuance was up 10.1 percent from February’s unchanged figure. Permits were down 0.9 percent from their March 2024 level but were up 4.9 percent from their trailing 12-month average.
In addition, 59,000 permits were issued in March for units in buildings with 2 to 4 units. This was the up 2,000 units from the revised (-3,000 units) figure for February. March permits for units in buildings with 2 to 4 units were up 13.5 percent from the year-ago level and were up 8.8 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 March was up 3.0 percent from its level in February but was down 4.6 percent from the level of March 2024. The three-month weighted moving average for permits came in at 486,000 annualized units.
On a month-over-month basis, the three-month weighted moving average for multifamily permit issuance was up 11.9 percent in the West and 8.9 percent in the South. Permit issuance was down 4.7 percent in the Midwest, and 15.5 percent in the Northeast.
When compared to year-earlier levels, the three-month weighted moving average of permits issued was up 18.2 percent in the Midwest and 16.4 percent in the South. Permit issuance fell 15.2 percent in the West and 49.4 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 unchanged
The preliminary March figure for multifamily housing starts in buildings with 5 or more units was 371,000 units on a seasonally adjusted, annualized basis. Starts were reported to be unchanged from the revised (+1,000 units) figure for February.
Compared to the year-earlier level, multifamily housing starts in buildings with 5 or more units were up 47.8 percent. However, the March 2024 starts figure was the lowest recorded since April 2020, right as the pandemic lockdowns were being imposed. The reported starts figure was 11.4 percent higher than the trailing 12-month average.
Multifamily housing construction starts (two or more units per building) in March were down 1.8 percent from their February level for the country as-a-whole, based on three-month weighted moving averages. Starts rose 82.4 percent in the Midwest and 12.2 percent in the Northeast but fell 11.8 percent in the South and 19.9 percent in the West.
The three-month weighted moving average of starts was up 17.6 percent for the country-as-a-whole on a year-over-year basis. Compared to year-earlier levels, starts were up 63.6 percent in the Northeast, 60.5 percent in the Midwest, 4.2 percent in the South and 1.4 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 continue slide
The preliminary March 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 down 8.2 percent (45,000 units) from the revised (+36,000 units) level of the month before.
Compared to the year-earlier level, multifamily housing completions in buildings with 5 or more units per building were down 4.4 percent. Completions were 14.4 percent below the trailing 12-month average.
For the country as-a-whole, multifamily completions (two or more units per building) were down 6.8 percent month-over-month, comparing three-month weighted moving averages. The three-month weighted moving average of completions was up 46.9 percent in the Midwest and 11.0 percent in the Northeast but down 10.2 percent in the South and 21.9 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 4.9 percent nationally. Completions were up 57.4 percent in the Northeast, but completions fell 8.2 percent in the South, 10.3 percent in the West and 18.7 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 740,000 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 9,000 units from the revised (-5,000 units) level of the month before. It is 20.7 percent, or 197,000 units, lower than the number of units under construction one year earlier.
Single-family starts lower
The report on single-family housing construction showed that, on a seasonally adjusted basis, single family permits fell 2.0 percent month-over-month and fell 0.6 percent year-over-year to 978,000 units. Starts fell 14.2 percent month-over-month and 9.7 percent year-over-year from last month’s revised (-12,000 units) level to 940,000 units. Completions were reported to be up from last month’s revised (-46,000 units) level, rising 0.9 percent month-over-month and 9.6 percent year-over-year to 1,029,000 units. The reported number of single-family units under construction was down 10,000 units from the revised (+2,000 units) level of the month before at 640,000 units.
All data quoted are based on seasonally adjusted results and are subject to revision.
