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
Multifamily Housing | May 29, 2020
New multifamily project includes energy storage as an amenity
Each battery is linked to an on-site solar panel array.
Coronavirus | May 26, 2020
Multifamily developers report mounting delays in permitting and starts due to coronavirus pandemic
More than half (53%) of multifamily developer respondents reported construction delays in the jurisdictions where they operate, according to the third edition of the National Multifamily Housing Council (NMHC) COVID-19 Construction Survey.
Multifamily Housing | May 8, 2020
Nashville's newest residential tower will rise 416 feet
Goettsch Partners is designing the project.
Multifamily Housing | May 8, 2020
'Lakehouse' is the first multifamily project in Colorado to receive WELL Precertification
Stantec and Muñoz + Albin are the project's architects.
Senior Living Design | May 5, 2020
5 memory care communities with a strong sense of mission
Communities in California, Colorado, Florida, Maryland, and Virginia display excellence in memory care facility development, design, and construction.
Multifamily Housing | Apr 23, 2020
Tankless water heaters: 12 things to know about these energy savers for multifamily housing
Twelve factors to consider in using tankless water heaters in multifamily housing.
Multifamily Housing | Apr 20, 2020
Multifamily market flattens as construction proposal activity sinks
Multifamily has consistently been one of the strongest performers among 58 submarkets measured in PSMJ Resources’ quarterly survey.
Coronavirus | Apr 15, 2020
COVID-19 alert: 93% of renters in professionally managed multifamily housing paid some or all of their rent, says NMHC
In its second survey of 11.5 million units of professionally managed apartment units across the country, the National Multifamily Housing Council (NMHC) found that 84% of apartment households made a full or partial rent payment by April 12, up 15 percentage points from April 5.
Multifamily Housing | Apr 15, 2020
Related Group picks Stantec to design and engineer Manor Miramar residences in Florida
Related Group picks Stantec to design and engineer Manor Miramar residences in Florida.