As 2024 nears its conclusion, the housing market has seen a notable increase in single-family home construction permits, while multifamily development has experienced a significant slowdown. Over the first eleven months of the year, the total number of single-family permits issued nationwide reached 912,910, reflecting an 8.2% increase compared to the 843,654 permits issued in the same period in 2023.
Single-Family Construction Gains Across All Regions The increase in single-family permits was seen across all four U.S. regions, with the Midwest leading the way at 11.5%, followed closely by the West at 11.4% and the Northeast at 9.4%. The South, while still growing, saw a smaller increase of 6.3%.
At the state level, 44 states saw growth in single-family permits. Montana led the country with a 31.4% increase, while Missouri posted the smallest gain at 2.6%. Six states and the District of Columbia reported declines in single-family permits.
Texas remained the leader in single-family construction, issuing 146,843 permits in the first eleven months of the year, an 8.8% increase compared to the same period in 2023. Florida, the second-largest state for permits, saw a slight 0.3% decline, while North Carolina, ranking third, posted a 7.0% increase.
Multifamily Permits Decline in Most Regions While single-family construction grew steadily, the multifamily sector saw a sharp decline. Nationwide, multifamily permits dropped 14.5%, falling from 520,919 in 2023 to 445,357 in 2024.
Three out of four regions experienced declines in multifamily permits:
The West saw the largest decline, dropping 29.7% The South followed with a 19.6% decrease The Midwest fell slightly, down 3.1% The Northeast was the only region to see an increase, jumping 32.6%, driven primarily by a surge in permits in New York City. State-Level Trends in Multifamily Permits Out of all 50 states, 21 states saw an increase in multifamily permits, while 29 states and the District of Columbia recorded declines.
New York led the nation with a 113.8% increase, more than doubling its number of multifamily permits from 14,544 in 2023 to 31,098 in 2024. On the other hand, Idaho saw the biggest drop, falling 54.3% from 5,469 to 2,497 permits.
Among the top states for multifamily permits:
Texas issued the most multifamily permits but saw a 21.3% decline Florida, the second-highest state, experienced a 25.0% decline California, ranking third, saw a 32.0% drop What These Trends Mean for the Housing Market The continued growth of single-family home permits suggests that builders are responding to demand for homeownership, especially as affordability challenges persist in the existing home market. The slight decline in single-family permitting in some states could indicate localized slowdowns, but overall, the sector remains strong.
The decline in multifamily permits points to a shift in the rental market, possibly influenced by rising construction costs, changing demand patterns, and concerns over long-term rental affordability. The Northeast's significant increase in multifamily permits stands in contrast to the rest of the country and highlights the unique dynamics of urban housing markets like New York City.
As 2025 approaches, the housing market will likely continue adjusting to economic conditions, mortgage rates, and shifting buyer preferences. With a growing number of single-family homes in the pipeline, prospective homeowners may see increased options, while the multifamily sector's slowdown could influence rental availability and pricing in key metro areas.
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