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Single-Family Permits Post High Year-Over-Year Increase

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Market Data + Trends

Single-Family Permits Post High Year-Over-Year Increase

May 17, 2021
New house being built
Photo: cfarmer | stock.adobe.com

A 25.3% year-over-year increase in single-family construction permits during the first three months of 2021 shows home builders will soon ramp up construction to meet buyer demand. Single-family permits increased in all four regions of the U.S., and the Midwest led with a 40% year-over-year increase, according to the National Association of Home Builders. The Northeast posted a 27.3% annual increase, the South saw a 23.1% increase, and the West experienced a 23.9% increase. Multifamily permits were significantly lower but still posted high year-over-year gains.

Between March 2020 YTD and March 2021 YTD, 49 states and the District of Columbia saw growth in single-family permits issued, while Rhode Island reported no change. The District of Columbia recorded the highest growth rate during this time at 300.0% from 20 to 80. The 10 states issuing the highest number of single-family permits combined accounted for 62.8% of the total single-family permits issued.

Year-to-date, ending in March 2021, the total number of multifamily permits issued nationwide reached 131,227. This is 20.4% ahead of the March 2020 level of 108,977.

Between March 2020 YTD and March 2021 YTD, 36 states recorded growth while 14 states and the District of Columbia recorded a decline in multifamily permits. New Mexico led the way with a sharp rise (1,267.7%) in multifamily permits from 62 to 848, while Illinois had the largest decline of 49.2% from 2,535 to 1,289. The 10 states issuing the highest number of multifamily permits combined accounted for 63.7% of the multifamily permits issued.

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