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
Resiliency | Jun 3, 2024
Houston’s buyout program has prevented flood damage but many more homes at risk
Recent flooding in Houston has increased focus on a 30-year-old program to buy out some of the area’s most vulnerable homes. Storms dropped 23 inches of rain on parts of southeast Texas, leading to thousands of homes being flooded in low-lying neighborhoods around Houston.
MFPRO+ New Projects | May 29, 2024
Two San Francisco multifamily high rises install onsite water recycling systems
Two high-rise apartment buildings in San Francisco have installed onsite water recycling systems that will reuse a total of 3.9 million gallons of wastewater annually. The recycled water will be used for toilet flushing, cooling towers, and landscape irrigation to significantly reduce water usage in both buildings.
MFPRO+ News | May 28, 2024
ENERGY STAR NextGen Certification for New Homes and Apartments launched
The U.S. Environmental Protection Agency recently launched ENERGY STAR NextGen Certified Homes and Apartments, a voluntary certification program for new residential buildings. The program will increase national energy and emissions savings by accelerating the building industry’s adoption of advanced, energy-efficient technologies, according to an EPA news release.
MFPRO+ News | May 24, 2024
Austin, Texas, outlaws windowless bedrooms
Austin, Texas will no longer allow developers to build windowless bedrooms. For at least two decades, the city had permitted developers to build thousands of windowless bedrooms.
Mass Timber | May 22, 2024
3 mass timber architecture innovations
As mass timber construction evolves from the first decade of projects, we're finding an increasing variety of mass timber solutions. Here are three primary examples.
Mixed-Use | May 22, 2024
Multifamily properties above ground-floor grocers continue to see positive rental premiums
Optimizing land usage is becoming an even bigger priority for developers. In some city centers, many large grocery stores sprawl across valuable land.
MFPRO+ News | May 21, 2024
Massachusetts governor launches advocacy group to push for more housing
Massachusetts’ Gov. Maura Healey and Lt. Gov. Kim Driscoll have taken the unusual step of setting up a nonprofit to advocate for pro-housing efforts at the local level. One Commonwealth Inc., will work to provide political and financial support for local housing initiatives, a key pillar of the governor’s agenda.
MFPRO+ News | May 21, 2024
Baker Barrios Architects announces new leadership roles for multifamily, healthcare design
Baker Barrios Architects announced two new additions to its leadership: Chris Powers, RA, AIA, NCARB, EDAC, as Associate Principal and Director (Healthcare); and Mark Kluemper, AIA, NCARB, as Associate Principal and Technical Director (Multifamily).
MFPRO+ News | May 20, 2024
Florida condo market roiled by structural safety standards law
A Florida law enacted after the Surfside condo tower collapse is causing turmoil in the condominium market. The law, which requires buildings to meet certain structural safety standards, is forcing condo associations to assess hefty fees to make repairs on older properties. In some cases, the cost per unit runs into six figures.
Mass Timber | May 17, 2024
Charlotte's new multifamily mid-rise will feature exposed mass timber
Construction recently kicked off for Oxbow, a multifamily community in Charlotte’s The Mill District. The $97.8 million project, consisting of 389 rental units and 14,300 sf of commercial space, sits on 4.3 acres that formerly housed four commercial buildings. The street-level retail is designed for boutiques, coffee shops, and other neighborhood services.
