Apartment Starts February 2007 - Apartment Starts Drop Again in February 

Apartment construction starts in February declined for the second month in a row and are down nearly 25 percent over the first two months of this year, according to Robert Sheehan, consulting economist for the National Apartment Association.

“The February rate of apartment starts may represent an end to the rollercoaster trend that has occurred for more than a year. Apartment starts tend to be up markedly one month and down significantly the next month. This would mean that apartment starts are indeed in a downward trend and that rental starts are more impacted than condominiums/co-operatives,” Sheehan said.

Apartment starts declined 2.2 percent to a 266,000 unit rate in February from a revised 272,000 in January, according to the U.S. Department of Commerce. Total multifamily housing starts increased 4.1 percent to 305,000 units from 293,000. Single-family starts increased 10.3 percent to a 1.220 million unit rate. Total housing starts occurred at a 1.525 million units annual rate in February versus 1.399 million units in January, a 9 percent increase.

Apartment starts totaled 37,100 units over the first two months of this year vs. 49,200 units a year ago. Total multifamily starts were 41,300 units down 22.8 percent from 53,500 units over the first two months of 2006.

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