After months of new single-family construction leading the way, November’s construction starts were boosted primarily by multifamily construction. In November, construction starts were 13% higher compared to last year and increased by 1.2% from October of this year. Building permits also hit their highest pace in 14 years, according to Realtor.com. A recent uptick in construction starts for multifamily projects, such as apartments and condos, leaped 8% while single-family starts were up 0.4%. Permits issued for buildings with five or more units increased almost 23% from October to November as well.
New-home construction activity didn’t grow evenly across all parts of the country. Housing starts surged roughly 59% in the Northeast, driven by the multifamily boom, but fell nearly 5% in the Midwest and 6% in the South. The Midwest and South both experience slowdowns in new construction of single-family homes.
The big picture: America’s building boom is continuing for now — and that’s good news for prospective home buyers. The severe shortage of existing homes for sale has pushed prices higher. As a result, the new-home segment of the market holds renewed importance.
“New home construction stands out as a clear solution to the rising challenge of affordability especially as housing demand is expected to continue to grow,” said Realtor.com senior economists George Ratiu. “However, without a significant supply of new construction, many would-be buyers will be forced to sit on the sideline due to record-high home prices.”
Brooklyn Net Zero Geothermal Apartment Complex Will Be First and Largest in the US
The New York housing complex—the first geothermal project of its kind at this scale—could serve as a blueprint for net zero living
How One Colorado City Paved the Way for In-Demand Affordable Senior Housing
The city of Durango, CO donated 1.5 acres of land for affordable senior housing
A Record Number of Housing Units Were Under Construction in November
Single-family housing starts are declining, but a sharp rise in multifamily construction sent the total share of new housing starts to a record high in November