flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Builder confidence rises on multifamily’s strength

Multifamily Housing

Builder confidence rises on multifamily’s strength

Starts and completions were up solidly in September, but permits are leveling off. 


By John Caulfield, Senior Editor | October 20, 2015
Builder confidence rises on multifamily’s strength

Construction on a Plymouth, Penn., multifamily residence. Photo: Montgomery County Planning Commission/Creative Commons.

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

Coronavirus | Apr 5, 2020

COVID-19: Most multifamily contractors experiencing delays in projects due to coronavirus pandemic

The NMHC Construction Survey is intended to gauge the magnitude of the disruption caused by the COVID-19 outbreak on multifamily construction.

Plumbing | Mar 13, 2020

Pioneer Industries launches new website

Pioneer Industries launches new website

Multifamily Housing | Mar 5, 2020

The Aviator apartment community opens near Henderson Executive Airport

The community is inspired by antique airplane designs.

Building Materials | Mar 3, 2020

84 Lumber President Maggie Hardy Knox receives Career Achievement Award

Maggie Hardy Knox, President of 84 Lumber and Nemacolin Woodlands Resort, to receive Career Achievement Award.

Multifamily Housing | Feb 26, 2020

School districts in California are stepping in to provide affordable housing for faculty and staff

One high school district in Daly City has broken ground on 122-apartment building.

Multifamily Housing | Feb 23, 2020

A post-storm Puerto Rico reconsiders how and what to rebuild

Federal help means tougher code enforcement. And will this island of homeowners embrace renting?

| Feb 17, 2020

Interior designers weigh in on outdoor kitchens

Designers weigh in on outdoor kitchens

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021