Apartment Starts January 2007 - Roller Coaster Pattern in Apartment Starts Continued In January 

Apartment construction permits retreated from their December high as they continued their roller coaster ride that has lasted for a year now. Apartment starts have generally been significant one month and markedly down the next, according to Robert Sheehan, consulting economist for the National Apartment Association.

“A very modest downward trend has occurred during this roller coaster ride. It is still expected that the condominium/co-operative component will moderate further this year. Rental construction starts should rise after the condo/co-ops overhang that has been turned to rentals,” Sheehan said.

Apartment starts plunged 20.5 percent to a 276,000 unit rate in January from a revised 347,000 in December, according to the U.S. Department of Commerce. Total multifamily starts fell 24.1 percent to 300,000 units from 395,000. Single family starts declined 11.2 percent to a 1.108 million unit rate. Total housing starts occurred at a 1.408 million units annual rate in January versus 1.643 million units in December, a 14.3 percent drop. The January level was the lowest in nearly a decade.

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