Where as single family housing starts have increased steadily since April, multifamily housing starts of 5 units or more have been losing ground since the middle of the year. The entire 71K month-over-month increase in total housing starts is entirely due to the increase in single family housing starts.
The regional statistics are limited to single-family and two units or more. The only region to show a strong gain in housing starts of 2 units or more was the South which saw an increase in the seasonally-adjusted annual rate of 77K units.
Again, the Census Bureau’s October housing starts data indicates no danger of overbuilding in the multifamily space. Multifamily real estate prices should remain well-supported by the continued lack of supply of new multifamily units. The continued strength of the South at the expense of the Northeast and Midwest is no surprise to those following the regulatory scene. Rent control, eviction moratoria, lockdowns and a generally less-favorable business climate are driving investment dollars elsewhere.
This article has been prepared for informational purposes only, and is not intended to provide, nor should it be relied upon for legal, tax, or accounting advice. You should consult your own legal, tax and accounting professionals. Do your own due diligence.
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