US Multifamily Housing Market Shows Mixed Signals in November 2024
The US multifamily housing market presented a complex picture in November 2024, with a national surge in permits juxtaposed against significant regional variations. While the overall annualized rate of multifamily permits saw a substantial increase, a closer look reveals a story of winners and losers across the country.
National Trends: A Picture of Growth and Uncertainty
nationally,the picture is one of growth,albeit with some caveats.The annualized rate of multifamily permits issued jumped a significant 22.1% in November compared to October, reaching 481,000 units. This represents a 4.8% year-over-year increase, according to data released by the U.S. Census Bureau and the Department of Housing and Urban Development. This suggests a continued, albeit fluctuating, demand for new apartment construction across the nation.
Regional Variations: A Tale of Two Cities (and Many More)
However, the national figures mask considerable regional disparities. While some markets experienced robust growth, others saw significant declines.For instance, while Brooklyn led the way in multifamily permits at the borough level with 8,690 units, other major cities experienced contrasting fortunes. Austin, while ranking second saw a 23.6% decrease in permits. Phoenix experienced an even steeper decline, with permits dropping nearly 33% to 13,967 units. This uneven distribution highlights the localized nature of the housing market and the influence of factors specific to each region.
Other cities showed similar mixed results.Atlanta and Dallas saw nearly 12,600 units permitted, while Houston, though down 35.4% year-over-year, saw a month-to-month increase of 900 units. Washington, D.C., and Los Angeles maintained their positions with over 9,000 permits each. Miami, however, saw a 27% annual decrease. The shifting rankings, with Fort Worth and Miami replacing Tampa and Raleigh/Durham in the top ten, further underscore the dynamic nature of the market.
beyond the top ten, cities like Omaha, Asheville (North Carolina), Boston, Milwaukee, and Kansas City showed significant year-over-year increases. Conversely, San Antonio, Jacksonville, Riverside, Minneapolis/St. Paul, and Nashville experienced substantial declines.
Looking Ahead: Interpreting the Data
The November 2024 data presents a complex picture of the US multifamily housing market. While the national numbers suggest growth, the significant regional variations highlight the need for a nuanced understanding of local market dynamics. Further analysis is needed to fully understand the underlying factors driving these trends and to predict future developments in this crucial sector of the US economy.
