10/17/2007
Regis J. Sheehan & Associates
Housing construction continued to fall dramatically during September and were at a more than a 13-year low as multifamily housing 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 decline. It is most likely that condo/co-op units accounted for most of the multifamily drop,” Sheehan said. “Multifamily construction can be volatile from month to month and could recover some of the loss in September data.”
Housing starts September occurred at an estimated 1.191million unit seasonally adjusted annual rate, according to the U.S. Department of Commerce, down 10.2 percent from the revised 1.327 million unit rate for August. Single-family construction dropped 1.7 percent to a 963,000 unit rate from 980,000 a month earlier. Apartment (units in structures with 5 or more units) fell 36 percent to a 201,000 unit rate from 314,000 in August. Total multifamily construction starts occurred at a 228,000 unit rate in September vs. 347,000 unit rate a month earlier.
Housing starts were mixed regionally. Starts increased 45.4 percent in the Northeast to a 141,000 unit rate. They dropped 28.4 percent in the Midwest to a 174,000 unit rate, were off 11.7 percent in the South and 10.1 percent in the West to a 257,000 unit rate.
Building permit activity declined 7.3 percent to a 1.226 million unit annual rate in September from the revised 1.322 million revised rate for August. Single family permits declined 7.1 percent to a 868,000 unit rate from 934,000 a month earlier. Total multifamily permits were issued at a 358,000 unit rate down 7.7 percent from the 388,000 rate a month earlier. Permits for apartments were issued a 311,000 unit rate in September, a 6.6 percent decline from the 333,000 unit rate for August.
Housing starts during the first nine months of this year were down 25.2 percent to a total 1.080 million units from the 1.443 million units over the same period in 2006. Single-family starts were down 27.7 percent to 804,400 units from 1.125 million units a year earlier. Total multifamily starts declined 13.6 percent to 220,700 units from 255,300 units. Apartment construction over the first nine months of this year dropped 11.6 percent to 195,900 units from 221,500 a year ago.