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 8, 2019
Multifamily visionary: AvalonBay’s relentless attention to detail
The nation's fourth-largest owner of apartments holds more than 85,000 apartments in 291 communities.
| Apr 28, 2019
New York Is NOT Most Expensive City for Apartment Sales Transactions
Data from Marcus & Millichap 2019 U.S. Multifamily Investment Forecast on Average Price/Dwelling Unit in apartment transactions.
Multifamily Housing | Apr 27, 2019
5 noteworthy multifamily developments
Special-needs housing in West Hollywood, Calif., and a warehouse-turned-apartments in the Twin Cities are among the notable multifamily projects to open recently.
| Apr 26, 2019
Organized Living Offers ‘Century Gray’ Product Finish for Multifamily Storage Systems
Organized Living releases new color option for apartment and condominium storage systems.
Multifamily Housing | Apr 23, 2019
Recharging Edison’s batteries
America’s greatest inventor would have appreciated this project team’s ingenuity and persistence.
Multifamily Housing | Apr 17, 2019
Multifamily real estate trends for 2019 and beyond
Boomers are on the move and Millennials are seeing upward mobility, but issues with affordability and housing product mix persist.
Multifamily Housing | Apr 16, 2019
Multifamily rentals are still alive and kickin’
Apartments are being built, and in goodly number. But not enough of it is affordable.
Multifamily Housing | Apr 12, 2019
NYC officials partner with nonprofit to build modular affordable housing
Thorobird and BACDYS partner with Brooklyn’s FullStack Modular on project.
Multifamily Housing | Apr 11, 2019
St. Augustine Terrace brings affordable housing to the Bronx
Magnusson Architecture + Planning designed the building.
Multifamily Housing | Apr 8, 2019
Priced to sell: DUMBO condo development offers starter units in luxury setting
Designed by ODA New York, 98 Front Street will be loaded with amenities like a salt water pool, co-working spaces, and indoor and outdoor fitness centers.