Starts of structures with five or more residential units increased by 28.6% in September, compared to the same month a year ago, to a seasonally adjusted annualized rate of 454,000, according to preliminary estimates that the Census Bureau released this morning.
Multifamily starts accounted for 37.6% of total annualized housing starts of 1.206 million, which were up 17.5% in September. However, single-family starts rose by only 12%, meaning that multifamily continues to be the engine powering the housing sector’s ongoing recovery and growth.
Census’s latest estimates would explain rising levels of home builder confidence. NAHB Economics yesterday released its monthly NAHB/Wells Fargo Housing Market Index for October, which at 64 was the highest it’s been since October 2005.
“With firm job creation, economic growth and the release of pent-up demand, we expect housing to keep moving forward as we start to close out 2015,” said David Crowe, chief economist for the National Association of Home Builders.
The big question, then, is how much fuel does multifamily construction have in its tank before it slows down, or before supply reaches equilibrium with demand?
One sign that this might be happening already is evident in Census’s estimates for building permits issued. Year to date, multifamily permits were up in September by 18.6%. However, multifamily permits were actually down 1.3% when compared with September 2014.
In addition, Dodge Data & Analytics notes that the value of multifamily construction fell 30% in September from August. “There were just two projects valued at $100 million or more that reached groundbreaking in September: a $132 million apartment building in New York, N.Y., and a $119 million residential tower in Seattle,” Dodge noted in an October 19 release. “This compares to eight multifamily projects valued at $100 million or more that reached groundbreaking in August, and 16 such projects that were entered as July starts.”
Dodge identified New York, Miami, Los Angeles, Washington D.C., and Boston as the top five metros ranked by the dollar amount of their multifamily starts.
Multifamily completions in September were up 20.4%, compared to a year ago, to 378,000 units, according to Census estimates.
Related Stories
MFPRO+ News | Jul 15, 2024
More permits for ADUs than single-family homes issued in San Diego
Popularity of granny flats growing in California
Vertical Transportation | Jul 12, 2024
Elevator regulations responsible for some of ballooning multifamily costs
Codes and regulations for elevators in the United States are a key factor in inflating costs of multifamily development, argues a guest columnist in the New York Times.
MFPRO+ New Projects | Jul 2, 2024
Miami residential condo tower provides a deeded office unit for every buyer
A new Miami residential condo office tower sweetens the deal for buyers by providing an individual, deeded and furnished office with each condo unit purchased. One Twenty Brickell Residences, a 34-story, 240-unit tower, also offers more than 60,000 sf of exclusive residential amenities.
Student Housing | Jul 1, 2024
Two-tower luxury senior living community features wellness and biophilic elements
A new, two-building, 27-story senior living community in Tysons, Va., emphasizes wellness and biophilic design elements. The Mather, a luxury community for adults aged 62 and older, is situated on a small site surrounded by high-rises.
MFPRO+ New Projects | Jun 27, 2024
Chicago’s long-vacant Spire site will be home to a two-tower residential development
In downtown Chicago, the site of the planned Chicago Spire, at the confluence of Lake Michigan and the Chicago River, has sat vacant since construction ceased in the wake of the Great Recession. In the next few years, the site will be home to a new two-tower residential development, 400 Lake Shore.
MFPRO+ News | Jun 25, 2024
New York mayor releases multi-year plan to address affordable housing crisis
The plan seeks to create and preserve affordable housing. It will incentivize the inclusion of permanently affordable and rent stabilized housing in new, multi-family construction projects.
Student Housing | Jun 25, 2024
P3 student housing project with 176 units slated for Purdue University Fort Wayne
A public/private partnership will fund a four-story, 213,000 sf apartment complex on Purdue University Fort Wayne’s (PFW’s) North Campus in Fort Wayne, Indiana. The P3 entity was formed exclusively for this property.
Apartments | Jun 25, 2024
10 hardest places to find an apartment in 2024
The challenge of finding an available rental continues to increase for Americans nation-wide. On average, there are eight prospective tenants vying for the same vacant apartment.
MFPRO+ News | Jun 24, 2024
‘Yes in God’s Backyard’ movement could create more affordable housing
The so-called “Yes in God’s Backyard” (YIGBY) movement, where houses of worship convert their properties to housing, could help alleviate the serious housing crisis affecting many communities around the country.
Student Housing | Jun 20, 2024
How student housing developments are evolving to meet new expectations
The days of uninspired dorm rooms with little more than a bed and a communal bathroom down the hall are long gone. Students increasingly seek inclusive design, communities to enhance learning and living, and a focus on wellness that encompasses everything from meditation spaces to mental health resources.