The Census Bureau’s report on new residential construction stated that multifamily permits declined again after last month’s bump. Multifamily starts rose for the third consecutive month. Multifamily completions continued their slide which started last August. It also reported single family permits, starts and completions were all lower.
With this report, the Census Bureau has revised their data for 2024 and they also revised their seasonally adjustment factors as far back as 2019. Therefore, revisions to prior month’s data in this report are larger than is typically seen.
Multifamily permits lower
The number of permits issued for buildings with 5 or more units in April was reported to be 431,000 units on a seasonally adjusted, annualized basis. Permit issuance was down 4.7 percent from March’s revised (-1,000 units) figure. Permits were down 3.2 percent from their April 2024 level but they were almost exactly at their trailing 12-month average.
In addition, 59,000 permits were issued in April for units in buildings with 2 to 4 units. This was the up 1,000 units from the revised (-1,000 units) figure for March. April permits for units in buildings with 2 to 4 units were up 5.4 percent from the year-ago level and were up 7.0 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 April was up 0.9 percent from the level in March but was down 0.1 percent from the level of April 2024. The three-month weighted moving average for permits came in at 492,000 annualized units.
On a month-over-month basis, the three-month weighted moving average for multifamily permit issuance was up 18.8 percent in the West and 14.6 percent in the Northeast. Permit issuance was down 4.2 percent in the South, and 13.2 percent in the Midwest.
When compared to year-earlier levels, the three-month weighted moving average of permits issued was up 29.5 percent in the Midwest, 12.7 percent in the West and 3.1 percent in the South. Permit issuance fell 37.7 percent in the Northeast.
The following chart shows the three-month weighted moving averages of multifamily construction 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 higher
The preliminary April figure for multifamily construction starts in buildings with 5 or more units was 420,000 units on a seasonally adjusted, annualized basis. Starts were reported to be up 42,000 units from the revised (+7,000 units) figure for March.
Compared to the year-earlier level, multifamily housing starts in buildings with 5 or more units were up 28.8 percent. The reported starts figure was 22.7 percent higher than the trailing 12-month average.
Multifamily construction starts (two or more units per building) in April were up 6.9 percent from their March level for the country as-a-whole, based on three-month weighted moving averages. Starts rose 23.1 percent in the Northeast, 18.7 percent in the South and 8.3 percent in the Midwest but fell 22.8 percent in the West.
The three-month weighted moving average of starts was up 27.6 percent for the country-as-a-whole on a year-over-year basis. Compared to year-earlier levels, starts were up 109.3 percent in the Northeast, 72.7 percent in the Midwest and 15.7 percent in the South. Starts fell 6.1 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 lower again
The preliminary April figure for multifamily housing unit completions in buildings with 5 or more units per building was 507,000 units on a seasonally adjusted, annualized basis. Completions were reported to be up 0.2 percent (1,000 units) from the revised (+3,000 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 1.7 percent. Completions were 13.3 percent below the trailing 12-month average.
For the country as-a-whole, multifamily completions (two or more units per building) were down 5.1 percent month-over-month, comparing three-month weighted moving averages. The three-month weighted moving average of completions was up 11.0 percent in the Northeast but down 6.4 percent in the West, 9.3 percent in the South and 30.3 percent in the Midwest.
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 5.3 percent nationally. Completions were up 68.9 percent in the Northeast and 7.0 percent in the West, but completions fell 17.1 percent in the South, and 30.3 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 733,000 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 5,000 units from the revised (-2,000 units) level of the month before. It is 20.2 percent, or 197,000 units, lower than the number of units under construction one year earlier.
Single-family permits, starts and completions all lower
The report on single-family housing construction showed that, on a seasonally adjusted annualized basis, single family permits fell 5.1 percent month-over-month and fell 6.2 percent year-over-year to 922,000 units. Starts fell 2.1 percent month-over-month and 12.0 percent year-over-year from last month’s revised (+7,000 units) level to 927,000 units. Completions were reported to be down from last month’s revised (-4,000 units) level, falling 8.0 percent month-over-month and 16.6 percent year-over-year to 943,000 units. The reported number of single-family units under construction was down 5,000 units from the revised (-5,000 units) level of the month before at 630,000 units.
All data quoted are based on seasonally adjusted results and are subject to revision.
