A silver lining among other July data declines.
While multifamily permits, starts and completions were down for July, the latest data from the Census Bureau shows a new high for multifamily units under construction. According to Reuters, multifamily housing reached a record 986,000 units under construction with a 1.1% increase, which is the highest level since record keeping began in 1970.
Buildings with five or more units saw permitting decline 0.2% in July from June but 32.2% year-over-year (YoY). Multifamily starts remained unchanged month-to-month and only had a slight uptick of less than half a percent YoY. Completions sank nearly 40% from June to July and 23.3% from July 2022.
Meanwhile, multifamily developer confidence is positive. The Multifamily Market Survey (MMS) from the National Association of Home Builders (NAHB) reports both indices of the MMS—the Multifamily Production Index and the Multifamily Occupancy Index—were in positive territory (a reading above 50) for the second quarter.
“Even though demand for multifamily housing remains solid due to the low availability and the high cost of single-family homes currently on the market, builders and developers face headwinds which are limiting new development and creating problems for getting projects approved in many parts of the country,” according to NAHB.
Learn more about U.S. Apartment Demand through 2035.