Over the first five months of 2023, the total number of single-family permits issued year-to-date (YTD) nationwide reached 357,143. On a year-over-year (YoY) basis, this is 24.7% below the May 2022 level of 473,997.
Year-to-date ending in May, single-family permits declined in all four regions. The Northeast posted the lowest decline of 14.7%, while the West region reported the steepest decline of 33.5%. The Midwest declined by 23.9% and the South declined by 22.3% in single-family permits during this time. For multifamily permits, the South is the only region to post a modest increase of 3.2% while the other three regions posted declines. Multifamily permits in the West were down 7.8%, down in the Northeast by 21.7%, and down in Midwest by 23.3%.
Between May 2022 YTD and May 2023 YTD, except for Hawaii, all the other states and the District of Columbia reported declines in single-family permits. Hawaii posted a 25.3% increase while the other states posted declines ranging from 0.5% in New Jersey to 64.6% in Alaska. The ten states issuing the highest number of single-family permits combined accounted for 64.4% of the total single-family permits issued. Texas, the state with the highest number of single-family permits issued, declined 27.6% in the past 12 months while the next two highest states, Florida and North Carolina declined by 23.8% and 14.8% respectively.
Year-to-date, ending in May, the total number of multifamily permits issued nationwide reached 247,005. This is 7.1% below the May 2022 level of 265,751.
Between May 2022 YTD and May 2023 YTD, 19 states recorded growth, while 31 states and the District of Columbia recorded a decline in multifamily permits. North Dakota led the way with a sharp rise in multifamily permits from 105 to 668 while Hawaii had the largest decline of 62.0% from 737 to 280. The ten states issuing the highest number of multifamily permits combined accounted for 65.1% of the multifamily permits issued. Texas, the state with the highest number of multifamily permits issued, declined 5.8% in the past 12 months while the next two highest states, Florida and California increased by 7.8% and 2.2% respectively.
At the local level, below are the top ten metro areas that issued the highest number of single-family permits.
| Top 10 Largest SF Markets | May-23 (# of units YTD, NSA) | YTD % Change (compared to May-22) |
| Houston-The Woodlands-Sugar Land, TX | 20,366 | -17% |
| Dallas-Fort Worth-Arlington, TX | 16,187 | -27% |
| Atlanta-Sandy Springs-Roswell, GA | 9,766 | -22% |
| Phoenix-Mesa-Scottsdale, AZ | 8,878 | -43% |
| Charlotte-Concord-Gastonia, NC-SC | 7,905 | -19% |
| Orlando-Kissimmee-Sanford, FL | 6,933 | -16% |
| Austin-Round Rock, TX | 6,256 | -41% |
| Nashville-Davidson–Murfreesboro–Franklin, TN | 5,929 | -25% |
| Tampa-St. Petersburg-Clearwater, FL | 5,634 | -19% |
| Raleigh, NC | 5,425 | -16% |
For multifamily permits, below are the top ten local areas that issued the highest number of permits.
| Top 10 Largest MF Markets | May-23 (# of units YTD, NSA) | YTD % Change (compared to May-22) |
| New York-Newark-Jersey City, NY-NJ-PA | 13,932 | -32% |
| Dallas-Fort Worth-Arlington, TX | 11,173 | -7% |
| Houston-The Woodlands-Sugar Land, TX | 9,513 | 15% |
| Phoenix-Mesa-Scottsdale, AZ | 8,339 | 30% |
| Atlanta-Sandy Springs-Roswell, GA | 7,855 | 18% |
| Austin-Round Rock, TX | 7,372 | -33% |
| Miami-Fort Lauderdale-West Palm Beach, FL | 7,112 | 14% |
| Los Angeles-Long Beach-Anaheim, CA | 7,071 | -12% |
| Charlotte-Concord-Gastonia, NC-SC | 5,841 | 28% |
| Denver-Aurora-Lakewood, CO | 5,744 | 4% |
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Declining single-family permits in May 2023 signal potential challenges for the construction loan market. which may impact housing supply and affordability. That is why it’s important to have the right financial partner by your side that can make all the difference. Us at builderloans.net can help you in achieving this.