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Posts Tagged ‘multifamily construction’

Private Residential Spending Rises in October

December 3rd, 2015 Comments off

nahb___private_residential_spending_index__forconstructionpros__creditAccording to the National Association of Home Builders (NAHB), private residential construction spending increased in October nearly two percent to a seasonally adjusted-annual rate (SAAR) of $399 billion, according to what forconstructionpros tells MHProNews.

While on a month-over-month basis, private single-family spending hit $226 billion, an increase of 1.6 percent over the revised September numbers, private multifamily spending rose 1.4 percent, to $58 billion.

On an annual basis, the rate of multifamily spending rose 28 percent from the year ago October estimate, while spending on single-family construction rose 11 percent. However, the pace of multifamily construction has begun to slow. The monthly growth rate of multifamily construction hit eight percent in August, six percent in September and fell to 1.4 percent in October.

NAHB expects steady growth in single-family spending through 2016. ##

(Image credit:forconstructionpros–National Association of Home Builders graph)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Home-building Starts and Permits Drop

July 17th, 2013 Comments off

According to government figures the pace of home building fell in June, mostly due to a drop in multifamily construction, as single-family starts fell one percent from May to June although the rate is still ten percent above year-ago levels. Work began on new homes at a seasonally-adjusted annual rate (SAAR) of 836,000 homes, a drop from 928,000 in May. Building permits also fell, from an SAAR of 985,000 in May to 911,000 in June, but still 16 percent above last June. Analysts attribute the drop in starts and permits to mortgage rates which have been slowly rising for the last ten weeks, although they continue at historically low rates. Still, as CNNMoney informs MHProNews, home prices, home sales and construction continue to be a driving force in the overall economic recovery.

(Photo credit: HousingWire)

New Home Starts Continue their Climb

June 18th, 2013 Comments off

Housing starts increased 6.8 percent in May to a seasonally-adjusted annual rate of 914,000 units due to a jump in multifamily construction. Single-family production remained steady at 599,000 homes, but multifamily activity grew 21.6 percent to 315,000 units. Regionally, the South posted a gain of 17.8 percent in combined starts and the West a 5.7 percent increase. The Northeast dropped nine percent points and the Midwest fell 13.7 percent. Issuance of new building permits for single-family and multifamily fell 3.1 percent in May, largely due to a drop of ten percent on the multifamily side. As MHProNews has learned from the National Association of Home Builders, single-family permits nudged up 1.3 percent to 622,000 units, its best rate in five years.

(Photo credit: Sue Orgocki/Associated Press)

New Home Construction Tops One Million

April 16th, 2013 Comments off

As MHProNews has learned from CNNMoney, the seasonally-adjusted annual rate (SAAR) of housing starts topped one million in March for the first time since June 2008, 1.4 million, seven percent better than Feb. 2013 and a 47 percent improvement since last March, primarily attributable to the growth in multifamily construction (five or more units). The rental market is growing due to younger workers who have been living with their parents are moving into rentals as the job market picks up. Former homeowners who experienced foreclosure and/or bankruptcy continue to enter the rental market. Kevin Finkel, of Resource Real Estate, owner of 24,000 rental units, says the shortage will last for years. “We have had a very weak supply of apartments for almost 20 years now,” he says. The rising cost of supplies and shortage of construction workers could, however, dampen the recovery.

(Photo credit: nakedphilly)

Multifamily Starts Still Strong

April 16th, 2013 Comments off

MHProNews has learned from the National Association of Home Builders (NAHB) figures released by HUD and the Census Bureau indicate total housing starts—single-family and multifamily– rose by seven percent in March, propelled by a 31.1 percent increase in new multifamily construction. As we have reported several times earlier, the rental market is currently very strong and growing. Meanwhile, single-family construction fell 4.8 percent from the previous month, and permit issuance dropped 3.9 percent. NAHB Chief Economist David Crowe, calling it a mixed bag because of the opposite directions of the two markets, says, “The three-month moving average for single-family starts remained unchanged at 628,000 units in March – which is right on pace with NAHB’s forecast for a 25 percent gain in new-home production in 2013.” Regionally, the Midwest, South and the West all gained in single and multifamily housing starts, while the Northeast region fell. Conversely, the Northeast posted a gain in issuance activity, while the other three regions experienced a decline.

(Photo credit: bloombergbusinessweek)

Multifamily Construction Leading the Recovery

January 23rd, 2013 Comments off

The National Association of Home Builders (NAHB) informs MHProNews multifamily will continue to lead the recovery of the overall housing market in the coming years, now standing at 70 percent of the way back to a sustainable level. NAHB Chief Economist David Crowe says, “We are forecasting construction of 299,000 new multifamily residences in 2013. While this is an improvement from just a few years ago, it is still well below the 350,000 units that are required to keep supply and demand in balance.” Although tight credit continues to be somewhat of an obstacle, as does the rising cost of building materials, Lance Swank of the Sterling Group in Mishawaka, Ind. says, “The market continues to improve as new household formations generate demand, especially in the market-rate rental segment. There is also a change in attitude toward renting—people like the flexibility it gives and the option to be able to easily move to another city or state for a job opportunity.”

Rental Market Growing

June 12th, 2012 Comments off

Moody’s Analytics says in HousingWire stagnant income growth and lack of adequate down payment is driving rental demand higher, with rents increasing five percent in the larger metropolitan markets, and climbing. Multifamily properties of five or more units saw vacancies fall from 12.5 percent at the start of 2010 to below 10.5 percent trough 2011. Multifamily construction starts averaged 221,000 units from Feb. to April 2012, compared to 67,000 units at the close of 2009. Moody’s suggests investors can convert distressed borrowers into renters, and then selling the property once appreciation occurs. “Conversions to rental units are the main way of adding to supply,” Moody’s tells MHProNews.com.

(Photo credit: Home-for-Rent)