flexiblefullpage -
billboard - default
interstitial1 - interstitial
Currently Reading

At an 18-year high, multifamily construction continues to drive housing sector

Multifamily Housing

At an 18-year high, multifamily construction continues to drive housing sector

Based on permit activity, builders are more confident than they’ve been in a decade.


By John Caulfield, Senior Editor | July 20, 2015
Multifamily construction continues to drive housing sector

Photo: Bainbridge Bethesda, Creative Commons

Predictions that multifamily housing construction would taper off in 2015 may have underestimated the ongoing demand for this kind of housing, the vast majority of which is being marketed as rentals.

Seasonally adjusted annualized starts for structures with five or more units rose to 476,000 in June, an 18-year high, according to Commerce Department estimates released a few days ago. That number was 28.6% higher than the annualized multifamily starts rate in May, and 55% higher than the comparable number in June 2014.

Perhaps more significant is the fact that multifamily continues to propel most of the housing sector’s current growth. While annualized single-family starts in June, at 685,000 units, were 14.7% ahead of June 2014, they actually declined by 0.9% compared to May 2015.

“The multifamily gains this month are encouraging and show that the millennial generation continues to be drawn to the rental market,” said Tom Woods, a home builder from Blue Springs, Mo., who is chairman of the National Home Builders Association (NAHB).

All told, the year-over-year annualized rate for all starts was up 26.6% in June to 1,174,000 units.

The NAHB/Wells Fargo Housing Market Index, which tracks Builder Confidence levels, hit 60 in July. The Index also revised its June level to 60. The last time this Index got this high was November 2005.

If permit activity is a gauge of future optimism about demand, builders remain solidly behind multifamily. The annualized rate in June for permits issued for structures five or more units was up 79% to 621,000 units, compared to June 2014. Single-family permits, on the other hand, were up 6% to 687,000, according to Commerce’s estimates. All told, annualized new-home building permits jumped 30% to 1,343,000.

The latest annualized data show that 500,000 structures with five or more units were under construction in June, 20.5% more than in June 2014; and 317,000 units were completed, a 17.9% gain.

David Crowe, NAHB’s chief economist, noted that while the starts and Builder Confidence numbers were positive signs, he cautioned that builders “still face a number of challenges, including shortages of lots and labor.”

Related Stories

Fire and Life Safety | Oct 4, 2022

Fire safety considerations for cantilevered buildings

Bold cantilevered designs are prevalent today, as developers and architects strive to maximize space, views, and natural light in buildings. Cantilevered structures, however, present a host of challenges for building teams, according to José R. Rivera, PE, Associate Principal and Director of Plumbing and Fire Protection with Lilker Associates Consulting Engineers.

| Oct 4, 2022

Rental property owners want access to utility usage data for whole properties

As pressure from investors for ESG reporting mounts, owners of multifamily properties increasingly look to collect whole-building utility usage data.

Resiliency | Sep 30, 2022

Designing buildings for wildfire defensibility

Wold Architects and Engineers' Senior Planner Ryan Downs, AIA, talks about how to make structures and communities more fire-resistant.

Multifamily Housing | Sep 15, 2022

Toronto’s B-Line Condominiums completed using prefabricated panels

B-Line Condos, Toronto, completed using Sto Panel Technology.

Multifamily Housing | Sep 15, 2022

Heat Pumps in Multifamily Projects

RMI's Lacey Tan gives the basics of heat pumps and how they can reduce energy costs and carbon emissions in apartment projects.

Multifamily Housing | Sep 14, 2022

27 new kitchen and bath products multifamily developers and AEC teams are using for the first time

Multifamily developers and AEC project teams are adopting new kitchen + bath products and systems for the first time, according to the MULTIFAMILY Design+Construction Kitchen+Bath Survey 2022.  

Multifamily Housing | Sep 13, 2022

Exclusive Multifamily Kitchen + Bath survey – Specifiers ask: "Where are all the refrigerators?"

Preliminary results of 2022 Multifamily Design+Construction exclusive Kitchen + Bath survey.

Senior Living Design | Sep 8, 2022

What’s new with AQ: The top trends in active adult living

Today's 55-or-better buyers are ready to design their lives and their homes as they see fit. With so much growth on tap, builders and developers must stay apprised of trends related to home, environment, and culture of 55+ communities.

Mass Timber | Aug 30, 2022

Mass timber construction in 2022: From fringe to mainstream

Two Timberlab executives discuss the market for mass timber construction and their company's marketing and manufacturing strategies. Sam Dicke, Business Development Manager, and Erica Spiritos, Director of Preconstruction, Timberlab, speak with BD+C's John Caulfield. 

boombox1 - default
boombox2 -
native1 -

More In Category

Fire and Life Safety

Fire safety considerations for cantilevered buildings

Bold cantilevered designs are prevalent today, as developers and architects strive to maximize space, views, and natural light in buildings. Cantilevered structures, however, present a host of challenges for building teams, according to José R. Rivera, PE, Associate Principal and Director of Plumbing and Fire Protection with Lilker Associates Consulting Engineers.




halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021

 



Magazine Subscription
Subscribe

Get our Newsletters

Each day, our editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Subscribe

Follow BD+C: