The U.S. housing market saw significant developments in 2024, with single-family construction leading the way in growth. Over the first nine months of the year, a total of 763,990 single-family permits were issued nationwide, marking a 10.1% year-over-year (YoY) increase from 693,908 permits during the same period in 2023.

Regional Trends in Single-Family Permits

Year-to-date (YTD) ending in September 2024, all four regions of the United States experienced growth in single-family permits. The West saw the largest increase at 15.8%, followed by the Midwest with an 11.8% rise. The Northeast matched the national growth average of 10.1%, while the South saw a 7.8% increase.

Among states, 46 and the District of Columbia reported increases in single-family permits. New Mexico led the pack with a 43.6% surge, while Oregon posted the smallest increase at 0.4%. Four states experienced declines: Maryland (-1.5%), New Hampshire (-1.6%), Alaska (-4.3%), and Hawaii (-7.7%).

Texas continued to dominate in single-family construction, issuing 122,976 permits, a 10.5% increase compared to 2023. Florida and North Carolina followed as the second and third highest states, with Florida seeing a modest 1.7% rise and North Carolina reporting an 8.5% increase. Collectively, the top ten states accounted for 63.1% of all single-family permits nationwide.

Multifamily Permits: A Mixed Picture

The multifamily sector painted a different story, with nationwide permits falling by 16.4% YTD in September 2024 compared to the same period in 2023. A total of 362,543 permits were issued, down from 433,862 the previous year.

While most regions saw declines, the Northeast bucked the trend, posting a robust 30.1% increase, largely driven by activity in New York. The West experienced the steepest drop at 31.7%, followed by the South (-20.7%) and the Midwest (-8.4%).

At the state level, 17 states recorded growth in multifamily permits, while 32 states and the District of Columbia reported declines. Rhode Island stood out with a sharp 134.6% increase, rising from 309 to 725 permits. In contrast, the District of Columbia experienced the largest drop, declining by 70.5% from 2,600 to 766 permits.

The ten states issuing the most multifamily permits accounted for 63.2% of the total permits. Texas led with the highest number, but its multifamily permits fell by 27.5%. Florida and California, ranking second and third, saw declines of 27.0% and 33.4%, respectively.

Local Highlights and Metropolitan Data

At the metropolitan level, significant activity was recorded in top markets for both single-family and multifamily permits. Metro areas in Texas and Florida continued to feature prominently for single-family growth, while New York and select markets in the Northeast supported multifamily expansion despite the overall downward trend in this sector.

Implications and Outlook

The divergent trends in single-family and multifamily permits reflect shifting priorities in the U.S. housing market. Single-family construction has rebounded strongly, driven by growing demand and regional variations, while multifamily development faces headwinds due to higher borrowing costs and economic uncertainties.

These trends highlight the need for adaptive strategies in the housing sector, balancing consumer preferences for single-family homes with ongoing demand for affordable and urban housing solutions. As the year progresses, local and state-level housing policies will likely play a pivotal role in shaping the future of both sectors.

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Folsom Mayor Lance Willie expressed excitement about the village's forthcoming $100,000 grant, marking the first significant state funding for the town in nearly two decades. Announced during the Board of Aldermen meeting on September 9, the grant promises to breathe new life into the park located behind Town Hall. Willie credited newly elected state representative Peter Egan for securing the funds, which were included in Act 776 of the State Legislature's 2024 Regular Session to provide state aid for local government recreation improvements.

The park, situated off June Street between La. 40 and Rosa Cryer Street, has been a focal point for Folsom's community. The property, donated several years ago, already features a covered pavilion ideal for hosting events like weddings and family reunions. A walking trail around the park's perimeter also attracts residents seeking outdoor activities. However, additional upgrades are necessary to fully realize the park's potential.

One of the immediate projects underway is the construction of restrooms on the property. The Board of Aldermen previously allocated $40,000 for the project, but most contractor bids exceeded the budget. A bid from Covington-based Tru Consulting and Contracting, slightly over the allocated amount at $47,959, was approved, and construction is set to begin this month.

The $100,000 grant will fund further enhancements, with a portion likely earmarked for lighting to improve safety and usability. Mayor Willie also envisions adding playground equipment to create a family-friendly environment for children during events like fundraisers and cook-offs. He highlighted the need for a fenced-off playground to provide entertainment for kids while adults attend activities at the pavilion.

Board member Jill Mathies suggested seeking public input on park amenities to ensure the upgrades meet community needs. Willie agreed and noted his discussions with St. Tammany Parish Recreation District No. 12 to coordinate efforts and avoid duplicating features available at Magnolia Park. This collaborative approach aims to maximize the park's value to Folsom residents.

In addition to park improvements, the September 9 meeting introduced annual cost-of-living pay increases for Folsom Police Chief Shilo Bruhl and Town Clerk Margra Steele. Chief Bruhl currently earns $49,140, and Clerk Steele earns $42,255 annually. These adjustments reflect the village's commitment to supporting its municipal staff alongside infrastructure investments.

The $100,000 grant represents a significant milestone for Folsom, offering an opportunity to enhance community spaces and strengthen connections among residents. With careful planning and public input, the park behind Town Hall is poised to become a vibrant hub for events and recreation.

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Many prospective homebuyers awaited the Federal Reserve's meetings in September and November, hoping for relief from the soaring interest rates that have defined the post-pandemic housing market. While the Fed delivered rate cuts—50 basis points in September and another 25 in November—the expected respite for homebuyers failed to materialize. The affordability crisis persists, with some borrowing costs rising even after the September cuts. Treasury yields, which significantly influence mortgage rates, surged following Election Day, reflecting investor concerns that the tax and tariff policies under a Trump presidency could fuel inflation and maintain high borrowing costs.

For those grappling with whether to transition from renting to owning, it is essential to consider whether buying a home aligns with your financial and personal priorities in this challenging market.

Homeownership has always been an expensive endeavor. Beyond the allure of a fixed monthly mortgage payment, owning a home brings additional financial responsibilities. Buyers often underestimate these costs, focusing solely on their monthly mortgage payment without accounting for the broader implications. Ownership includes expenses such as property taxes, homeowners insurance, HOA or condo fees, regular maintenance, and potential renovations or repairs. Once these are factored in, the financial advantage of buying over renting may not hold up.

Renting isn't necessarily the better option by default either. The decision between renting and buying is nuanced and depends on factors like affordability, long-term plans, and personal goals.

To evaluate the choice more effectively, consider three key questions:

How much of your income will go toward housing? A general benchmark is to keep total housing costs, whether renting or buying, at 25% or less of your gross income. This threshold allows for a balance between paying for housing and maintaining sufficient cash flow for other expenses, savings, and discretionary spending. Spending more than this can strain your financial health and limit your ability to achieve other goals. Compare the costs of renting versus buying and assess how each aligns with your income.

How long can you commit to living in one place? Homeownership makes sense when you plan to stay in one location for at least five years. This time frame allows you to build equity and offset the significant transaction costs associated with buying and selling real estate. For those with uncertain plans or a likely move within a few years, renting may be the better option, as real estate is a highly illiquid asset that can be challenging to sell quickly in a volatile market.

What do you actually want? Cultural narratives often paint homeownership as the ultimate financial goal, but this ideal doesn't suit everyone. Renting offers flexibility and fewer obligations, while buying provides the potential for equity building and long-term stability. Ultimately, the decision should reflect your unique needs, preferences, and financial goals. If you are content with renting, prioritize saving and investing to build a robust financial foundation. If buying is important to you, create a strategic plan to make it a reality.

The choice to buy a home should be deliberate, guided by your priorities rather than societal expectations. Homeownership is a significant commitment that requires careful planning and financial readiness. Whether you decide to rent or buy, the key is to ensure that the decision supports your overall financial health and aligns with your lifestyle and aspirations.

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Homebuying During the Holidays Can Be a Season of Opportunity or Added Stress

As November unfolds and the holiday season approaches, inflation has cooled from recent highs, and interest rates have edged down following the Federal Reserve's latest adjustments. These shifts have made this expensive time of year a bit more manageable for American consumers. But with these changes, many are asking: Is now the right time to make a big financial move, like buying a house?

Experts suggest that while the holiday season offers some unique opportunities for buyers, it also comes with challenges. Here's a closer look at the pros and cons of homebuying during the holidays.

The Pros of Holiday Homebuying

Less Competition and Lower Prices

Winter typically sees fewer buyers in the market, as many families aim to complete their home purchases before the new school year. This seasonal slowdown can work to your advantage.

"With fewer buyers actively looking, there's less competition, which can mean fewer bidding wars and an easier time securing a home," says Smitha Ramchandani, a broker associate with Christie's International Real Estate Group.

The result? More negotiating leverage for buyers. "During the holiday season, sellers are often eager to close quickly, leading to price reductions or flexible terms," Ramchandani adds. Data supports this: In 2023, the median home sale price fell by 1.1% between October and November and again in December. Nearly 19% of listings saw price drops in November alone, according to Redfin.

Tax Advantages

Buying a home before year-end could also bring tax benefits. "Buyers can claim deductions for mortgage interest, property taxes, and closing costs, which may reduce their tax burden for the current year," Ramchandani explains.

However, these deductions require itemizing your tax return, so it's important to calculate whether the benefits outweigh the standard deduction.

Better Access to Professionals

The holiday slowdown can also mean better service. With fewer clients, real estate agents, inspectors, and lenders may be more attentive and accommodating.

"Buyers during this time might expect a higher level of attention from every service provider," says Douglas Wagner, director of brokerage services with BOND New York Properties. Sellers and their agents are often more flexible as well, eager to schedule showings and close deals before the year ends.

The Cons of Holiday Homebuying

Fewer Listings

While buyers are less active during the holidays, so are sellers. Many homeowners hold off on listing their properties or temporarily withdraw their homes from the market, creating fewer options for buyers.

"Some sellers avoid the disruptions that come with being on the market during the holidays," says Wagner.

However, Bret Weinstein, founder of Guide Real Estate, notes that this season may be different. "Mortgage rates have bounced back a bit, creating a surplus of holiday inventory and significant room for negotiation," Weinstein says.

Scheduling Challenges

Holiday schedules can complicate the homebuying process. Coordinating with agents, inspectors, lenders, and attorneys can become tricky with vacations and festivities.

"Flexibility and planning ahead are essential," says Maria Avellaneda, an associate broker with Keller Williams NYC. Without preparation, delays could occur.

Added Stress

Balancing a home purchase with holiday obligations — from gift shopping to family gatherings — can be overwhelming.

"Buying a home during the holidays adds a layer of stress to an already busy season," says Louis Adler, co-founder of REAL New York. Still, Adler notes that for some buyers, the benefits can outweigh the stress, especially given the potential for lower prices and better terms.

While the holidays may not be a conventional time to buy a home, they offer unique advantages, such as reduced competition and potential cost savings. However, these benefits must be weighed against challenges like limited inventory, scheduling difficulties, and added stress.

For buyers tempted to wait for further rate reductions in 2025, experts warn that as rates drop, demand will likely increase, potentially driving home prices higher.

Ultimately, the decision comes down to your financial readiness and personal circumstances. If you're uncertain, consult with a local real estate agent, loan officer, or financial advisor to evaluate your options and make the best decision for your situation.

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