Multifamily Drop Brings Production Down 2.6% in April

Filed in Economics, Home Building, Multifamily by on May 16, 2017 0 Comments

Led by a decline in multifamily production, nationwide housing starts fell 2.6% in April to a seasonally adjusted annual rate of 1.17 million units, according to newly released data from HUD and the Department of Commerce.

Multifamily starts fell 9.2% to a seasonally adjusted annual rate of 337,000 units while single-family production remained essentially unchanged, ticking up 0.4% to 835,000.

“Despite this minor pullback, builders are optimistic about market conditions and expect more consumer activity in the months ahead,” said NAHB Chairman Granger MacDonald. “However, builders need to be careful to manage expenses as construction costs continue to rise.”

“While we saw a little pause in market growth this month, single-family production is still up 7% since the start of 2017,” said NAHB Chief Economist Robert Dietz. “The April report falls in line with our forecast for continued, gradual strengthening of the single-family sector throughout the year.”

Regionally in April, combined single- and multifamily housing production rose 19.4 percent in the Midwest and 9.1 percent in the West. Starts fell by 3.4 percent in the South and 29.2% in the Northeast.

Overall permit issuance in April was down 2.5% to a seasonally adjusted annual rate of 1.23 million units. Multifamily permits inched up 1.4% to 440,000 units while single-family permits fell 6.2% to 789,000.

Regionally, overall permits rose 8.7% in the West and 1% in the Midwest. Permits fell 7.4% in the South and 10.3%in the Northeast.

See this Eye on Housing post for more detail.

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