Significant increases in multifamily residential construction are fueling improvements in the building industry in communities throughout the United States. Increased production of multifamily apartment units formed the basis of this surge in nationwide residential construction, according to sources that include the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Government sources indicate that multifamily resident starts rose almost 40 percent in April 2014.
The substantial rise in multifamily apartment construction put the number of housing starts at over 1 million nationwide in April. Total housing construction increased more than 13 percent in that same period.
April’s increases in multifamily residential construction amounted to a seasonally adjusted rate of 423,000 units, the highest level of growth since January 2006.
Where Is the Growth?
The nation’s four main geographical regions all saw gains in both single-family and multifamily housing in April. The biggest increases happened in the Northeast, with nearly a 30 percent gain, and the Midwest, with slightly more than a 42 percent gain. The western region of the United States saw an increase just above 11 percent, while the South experienced only minimal growth of 1.5 percent.
Industry experts suggest that lagging numbers in single-family construction are likely due to limited credit availability and continued economic uncertainty nationwide. Multifamily construction, which provides greater opportunities for investors and builders, is expected to remain at a high level in the immediate future, noted Kevin Kelly, chair of the National Association of Home Builders (NAHB).
April’s building permit data also shows an 8 percent increase in permit issuance in April. This boost in permits, which is generally accepted as an indicator of upcoming building activity, occurred as a result of multifamily sector growth.
Construction Monitor is the construction industry’s premiere source for the most recent building permit data for areas across the United States. Contact us today for more information on trends in multifamily residential construction and what they can mean for your business.
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