Housing Under Construction – November Data


Due to the surge in multifamily development and the ongoing modest growth for single-family, there has been a noticeable shift in the market shares of housing units under construction. The Census housing starts data illustrate a trend to more multifamily units in the production pipeline.

strts under construction_nov15

Using the seasonally adjusted Census estimates, at the end of November there were 549,000 multifamily units under construction. This is in contrast to just 416,000 single-family units. The multifamily share of units under construction, which averaged just under 32% from 2000 to 2006, now stands at almost 57%.

These data detail the potential for growth in the single-family market. Keep in mind that for the October new home sales data, there were just 226,000 newly built homes for sale, a 5.5 months’ supply. And of that total, only 52,000 were completed, ready to occupy inventory.

NAHB expects the growth rate for multifamily starts to slow, while single-family increases. These changes will alter the market shares of units currently under construction.

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