Over 2023, the total number of single-family permits issued year-to-date (YTD) nationwide reached 909,227. On a year-over-year (YoY) basis, this is 6.5% below the December 2022 level of 972,180.
Year-to-date ending in December, single-family permits declined in all four regions. The range of permit decline spanned 5.0% in the South to 9.7% in the West. The Northeast declined by 7.1% and the Midwest declined by 7.6% in single-family permits during this time. For multifamily permits, the percentage decline spanned 14.6% in the South region to 28.5% in the Northeast. The West declined by 15.2% and the Midwest declined by 21.1% in multifamily permits during this time.
Between December 2022 YTD and December 2023 YTD, except for Hawaii (+16.7%), Maryland (+8.7%), Nevada (+5.8%), West Virginia (+4.7%), Virginia (0.8%), North Carolina (0.7%), and Alabama (0.0%), all other states and the District of Columbia reported declines in single-family permits. The range of declines spanned 0.1% in Idaho to 59.4% in the District of Columbia. The ten states issuing the highest number of single-family permits combined accounted for 63.9% of the total single-family permits issued. Texas, the state with the highest number of single-family permits issued, declined 6.5% in the past 12 months; The succeeding highest state, Florida saw a decline of 6.9% while the next highest, North Carolina, posted an increase of 0.7%.
For 2023, the total number of multifamily permits issued nationwide reached 561,369. This is 17.4% below the December 2022 level of 679,898.
Between December 2022 YTD and December 2023 YTD, 15 states recorded growth in multifamily permits, while 35 states and the District of Columbia recorded a decline. Delaware (+96.3%) led the way with a sharp rise in multifamily permits from 562 to 1,103, while Wyoming had the greatest decline of 74.2% from 1,044 to 269. The ten states issuing the highest number of multifamily permits combined accounted for 63.2% of the multifamily permits issued. Over the last 12 months, Texas, the state with the highest number of multifamily permits issued, experienced a decline of 24.0%. Following closely, the second-highest state in multifamily permits, Florida, saw a decline of 12.4%. California, the third largest multifamily issuing state, declined by 3.4%.
At the local level, below are the top ten metro areas that issued the highest number of single-family permits.
| Top 10 Largest Single-Family Markets | Dec-23 (# of units YTD, NSA) | YTD % Change (compared to Dec-22) |
| Houston-The Woodlands-Sugar Land, TX | 50,014 | 5% |
| Dallas-Fort Worth-Arlington, TX | 42,543 | -2% |
| Phoenix-Mesa-Scottsdale, AZ | 24,810 | -8% |
| Atlanta-Sandy Springs-Roswell, GA | 23,972 | -9% |
| Charlotte-Concord-Gastonia, NC-SC | 19,088 | 1% |
| Orlando-Kissimmee-Sanford, FL | 17,035 | 5% |
| Austin-Round Rock, TX | 16,738 | -22% |
| Tampa-St. Petersburg-Clearwater, FL | 14,827 | -5% |
| Nashville-Davidson–Murfreesboro–Franklin, TN | 14,169 | -7% |
| Jacksonville, FL | 12,402 | -14% |
For multifamily permits, below are the top ten local areas that issued the highest number of permits.
| Top 10 Largest Multifamily Markets | Dec-23 (# of units YTD, NSA) | YTD % Change (compared to Dec-22) |
| New York-Newark-Jersey City, NY-NJ-PA | 28,226 | -39% |
| Dallas-Fort Worth-Arlington, TX | 24,014 | -29% |
| Austin-Round Rock, TX | 21,861 | -4% |
| Phoenix-Mesa-Scottsdale, AZ | 20,827 | 1% |
| Los Angeles-Long Beach-Anaheim, CA | 18,881 | -13% |
| Houston-The Woodlands-Sugar Land, TX | 18,322 | -35% |
| Miami-Fort Lauderdale-West Palm Beach, FL | 15,947 | 21% |
| Atlanta-Sandy Springs-Roswell, GA | 14,617 | -30% |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 12,189 | -41% |
| Denver-Aurora-Lakewood, CO | 11,651 | -13% |
Discover more from Eye On Housing
Subscribe to get the latest posts sent to your email.
This decline in single-family and multifamily permits in 2023 underscores the importance of carefully evaluating market trends and demand when considering construction loans. Lenders and developers must adapt strategies to navigate fluctuations in the housing market effectively, ensuring prudent investment decisions amidst changing permit issuance rates.