- April’s new construction numbers dissapoint. All three of the major new construction indictors – permits, starts, and completions – fell from last month.
- The silver lining for new homebuyers is that most of the construction pullback is in the multifamily sector, where economists have been expecting an eventual slowdown given the charge of multifamily units coming out of the recession. It looks that sharp pull back is finally here.
- The one number to note is the pull back in single-family permits. We’ll be closely watching this closely in the coming months to see whether this is an anomaly or the start of a trend
New housing permits, starts and completions were all down over the month in April, dropping by 2.5%, 2.6%, and 8.6%, respectively, and fell to 66.3%, 60.1%, and 59.4% of their 50-year average.
The silver lining for new homebuyers is that most of the construction pullback is in the multifamily sector, where economists have been expecting an eventual slowdown given the charge of multifamily units coming out of the recession. It looks that the retreat is finally here. Multifamily starts and completions fell 9.2% and 19.8%, respectively over the month, and permits were flat.
The one number to note from this month’s release is the decline in single family permits, which fell 4.5% from last month. Permits are the longest lead indicator of new housing supply, so we’ll be paying close attention in the months ahead to determine whether this is a statistical blip or the start of a trend.