{"id":3043,"date":"2022-04-19T17:59:17","date_gmt":"2022-04-19T17:59:17","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/04\/19\/strong-multifamily-growth-results-in-modest-housing-starts-increase\/"},"modified":"2025-03-13T02:41:29","modified_gmt":"2025-03-13T02:41:29","slug":"strong-multifamily-growth-results-in-modest-housing-starts-increase","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/04\/19\/strong-multifamily-growth-results-in-modest-housing-starts-increase\/","title":{"rendered":"Strong multifamily growth results in modest housing starts increase"},"content":{"rendered":"\n<p>On the strength of better-than-expected multifamily numbers, housing starts in March <a href=\"https:\/\/preprod.realtrends.com\/blog\/single-family-housing-starts-hit-highest-level-since-2006\/\" target=\"_blank\" rel=\"noreferrer noopener\">increased<\/a> 0.3% overall to a seasonally annualized rate of 1.793 million units, the highest mark since 2006. <\/p>\n\n\n\n<p>The multifamily sector, which includes apartment buildings and condos, rose 4.6% to annualized pace of 593,000 units, according to a <a href=\"https:\/\/www.census.gov\/economic-indicators\/?utm_campaign=&amp;utm_content=&amp;utm_medium=email&amp;utm_source=govdelivery\" target=\"_blank\" rel=\"noreferrer noopener\">report<\/a> released Tuesday by the <strong>U.S. Department of Housing and Urban Development<\/strong>\u00a0and the\u00a0<strong>U.S. Census Bureau.<\/strong> It wasn&#8217;t all good news:\u00a0single-family housing starts dropped 1.7% to a seasonally adjust annual rate of 1.20 million units.<\/p>\n\n\n\n<p>\u201cToday&#8217;s housing starts gain was driven by gains in multi-family construction,\u201d <strong>First American <\/strong>deputy chief economist Odeta Kushi said in a statement. \u201cPermits and completions were also up for multifamily on a month-over-month basis. Single\u2010family housing starts in March were 1.7% below the revised February figure, but remain above pre-pandemic levels. Permits and completions were also down month-over-month for single-family homes.\u201d<\/p>\n\n\n\n<p>Nationwide, overall permits increased 0.4% to an annualized pace of 1.87 million units in March. However, single family permits dropped 4.8% to a rate of 1.15 million units, while multifamily permits increased to a pace of 726,000 units.<\/p>\n\n\n\n<p>Single family permits authorized but not started increased 7.6% in March to 127,000. This is a 30.9% year-over-year increase.<\/p>\n\n\n\n<p>Experts blamed the drop in single family housing starts and permits on ongoing <a href=\"https:\/\/preprod.housingwire.com\/articles\/its-crazy-homebuilders-big-and-small-struggle-to-finish-projects\/\" target=\"_blank\" rel=\"noreferrer noopener\">supply chain issues<\/a>, which are delaying construction and contributing to increasing building costs, and <a href=\"https:\/\/preprod.housingwire.com\/articles\/what-5-mortgage-rates-mean-for-the-housing-market%ef%bf%bc\/\" target=\"_blank\" rel=\"noreferrer noopener\">rising mortgage rates<\/a>.<\/p>\n\n\n\n<p>\u201cThe shift in affordability can be seen in the March data with strength for multifamily construction and some weakness for single-family permits,\u201d the <strong>National Association of Homebuilders<\/strong> chief economist Robert Dietz said in a statement. \u201cOur builder surveys show that confidence levels in the single-family market have declined for four straight months as affordability conditions continue to worsen, and this is a sign that single-family production will face challenges moving forward.\u201d<\/p>\n\n\n\n<p><a href=\"https:\/\/www.nahb.org\/news-and-economics\/housing-economics\/indices\/housing-market-index\" target=\"_blank\" rel=\"noreferrer noopener\">In April<\/a>, the <strong>NAHB\/Wells Fargo Housing Market Index<\/strong> dropped two points to a reading of 77, marking the fourth consecutive month of declines.<\/p>\n\n\n\n<p>\u201cSagging homebuilder confidence, which fell for the fourth month in a row, reflects these concerns,\u201d Kushi said in a statement. \u201cYet, it\u2019s important to point out that homebuilder confidence is less \u2018bullish\u2019 as opposed to actually \u2018bearish.\u2019 Builder sentiment remains higher than pre-pandemic as several long-term trends continue to boost demand for new construction, particularly a growing labor market, demographic tailwinds from millennials entering their prime home-buying years, and a lack of existing-home inventory.\u201d<\/p>\n\n\n\n<p>Regionally, on a year-to-date basis, overall housing starts were up 17.3%. In the Northeast, 6.6% in the Midwest, 11.2% in the South and 7.5% higher in the West.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The multifamily sector, which includes apartment buildings and condos, rose 4.6% to annualized pace of 593,000 units. Meanwhile, single-family housing starts dropped 1.7%.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-3043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Strong multifamily growth results in modest housing starts increase - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"The multifamily sector, which includes apartment buildings and condos, rose 4.6% to annualized pace of 593,000 units. Meanwhile, single-family housing starts dropped 1.7%.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/preprod.realtrends.com\/blog\/2022\/04\/19\/strong-multifamily-growth-results-in-modest-housing-starts-increase\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Strong multifamily growth results in modest housing starts increase\" \/>\n<meta property=\"og:description\" content=\"The multifamily sector, which includes apartment buildings and condos, rose 4.6% to annualized pace of 593,000 units. 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