Single-family permits rose 23.8% year-over-year in Q1 to around 240,500 units, with growth occurring across all major regional markets. In contrast, all multifamily regional permit metrics declined on an annual basis.
“This is the first time since the inception of the HBGI that all tracked multifamily geographic areas registered negative permit growth rates,” Harris noted.
NAHB chief economist Robert Dietz pointed out that the growth in single-family construction was particularly strong in higher-density areas, likely due to return-to-office trends boosting demand in inner suburbs.
On the other hand, “the apartment construction slowdown is disproportionately affecting higher density markets, where high levels of construction inventory, elevated costs, and tight financing are impeding multifamily supply,” Dietz said.
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