Apartment Starts September 2007 - Apartment and Total Multifamily Construction Plunge in September 

Housing construction continued to fall dramatically during September and were at a more than a 13-year low as total multifamily and apartment actvity dropped sharply, according to Robert Sheehan, consulting economist for the National Apartment Association.

“Multifamily construction joined the single family collapse during September with a 34.3 percent drop and apartment starts fell 36 percent. It is most likely that condo/co-op units accounted for most of the total multifamily and apartment construction starts drop,” Sheehan said. “Multifamily construction can be volatile from month to month and could recover some of the loss in the October data.”

Apartment (units in structures with 5 or more units) occurred at a 201,000 unit rate during September from 347,000 in August, according to the U.S. Department of Commerce. Total multifamily construction starts fell to 228,000 unit rate in September from the 347,000 unit rate a month earlier. Single family starts were down 1.7 percent to a 963,000 unit rate. Total housing starts occurred at a 1.191million unit annual rate in September off 10.2 percent from the 1.327 million unit rate in August. The August rate for total housing starts was also the lowest in more than 13 years.

Permits for apartment units declined 6.6 percent in September. Apartment permits were issued at a 311,000 unit rate vs. 333,000 in August. Total multifamily permits occurred at a 358,000 unit rate in September down 7.7 percent from the 388,000 in August.

All multifamily starts totaled 198,000 units over the first eight months of this year vs. 224,300 units a year ago, an 11.7 percent drop. Apartment starts were 176,000 units down 8.9 percent from 193,300 units through August of last year.

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