Multifamily Construction Struggles

 

Data on the Value of Construction Put in Place verify the differing trends in single-family and multifamily housing. The value of multifamily construction fell 2.1 percent in October after falling 5 percent in September. By contrast, the value of single-family construction rose 1.9 percent in October after rising 2.6 percent in September.
Courtesy of Wikipedia Commons

Multifamily units (in buildings with two or more units) were started at a seasonally adjusted annual rate of just 53,000 in October, their lowest level since starts began to be reported in 1959. Multifamily starts, which are notoriously volatile from month to month, averaged 142,000 in the first half of the year and averaged 80,000 from July through October. Look for more business opportunities to make landscape improvements for single family units vs. multifamily units.

Multifamily building permits, which are less volatile, have not been much more encouraging. In the first half of this year they averaged 146,000. From July through October, they averaged 110,000. In both July and October, 101,000 multifamily permits were pulled, the lowest number reported since the series began in 1960.

Multifamily construction is struggling against stiff competition from the single-family rental market and significant obstacles to construction financing that began in 2008.

– Courtesy of NAHB