Construction Statistics Archives - Page 2 of 2

Townhouse Construction Expanded in 2024

Robert Dietz2025-02-21T00:17:38-06:00

Townhouse construction expanded 10% during 2024, outpacing the rest of the single-family home building market. According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the fourth quarter of 2024, single-family attached starts totaled 44,000. Over the last four quarters (2024 as a whole), townhouse construction starts totaled a strong 174,000 homes, which is 10% higher than the prior four-quarter period (158,000 in 2023). Townhouses made up 19% of single-family housing starts for the fourth quarter of the year, a data series high. Using a one-year moving average, the market share of newly-built townhouses stood at 17.3% of all single-family starts for the fourth quarter. With recent gains, the four-quarter moving average market share is near the highest on record, for data going back to 1985. Prior to the current cycle, the peak market share of the last two decades for townhouse construction was set during the first quarter of 2008, when the percentage reached 14.6% on a one-year moving average basis. This high point was set after a fairly consistent increase in the share beginning in the early 1990s. The long-run prospects for townhouse construction are positive given growing numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities. Where it can be zoned, it can be built. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Townhouse Construction Expanded in 2024Robert Dietz2025-02-21T00:17:38-06:00

Housing Starts Retreat at the Start of 2025

Robert Dietz2025-02-19T09:22:55-06:00

Constrained housing affordability conditions due to ongoing, elevated interest rates led to a reduction in single-family production to start the new year. Overall housing starts decreased 9.8% in January to a seasonally adjusted annual rate of 1.37 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The January reading of 1.37 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 8.4% to a 993,000 seasonally adjusted annual rate; the January pace was 1.8% lower than a year ago. The multifamily sector, which includes apartment buildings and condos, decreased 13.5% to an annualized 373,000 pace. As mirrored in the NAHB/Wells Fargo HMI, high construction costs, elevated mortgage rates and challenging housing affordability conditions are causing builders to approach the market with caution. There are competing upside and downside risks, including discussed tariffs and regulatory reform. Given persistent affordability concerns, reducing inefficient regulatory costs would offer the best policy path to improve attainable housing supply and bring down shelter inflation. On a regional basis compared to the previous month, combined single-family and multifamily starts are 27.6% lower in the Northeast, 10.4% lower in the Midwest, 23.3% lower in the South and 42.3% higher in the West. Overall permits increased 0.1% to a 1.48 million unit annualized rate in January. Single-family permits were at a 996,000 annual unit rate, remaining unchanged compared to the previous month. Multifamily permits increased 0.2% to an annualized 487,000 pace. Looking at regional permit data compared to the previous month, permits are 6.1% lower in the Northeast, 1.8% higher in the Midwest, 0.1% lower in the South and 2.3% higher in the West. The number of single-family homes under construction in January is down 6.3% from a year ago, to 641,000 units. The number of multifamily units under construction is down 22.1% from a year ago, to 768,000 units. There were 669,000 multifamily completions in January, up 11% from January 2024. For each apartment starting construction, there are 1.8 apartments completing the construction process. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Housing Starts Retreat at the Start of 2025Robert Dietz2025-02-19T09:22:55-06:00

Single-Family Permits End 2024 with Strong Momentum

Danushka Nanayakkara-Skillington2025-02-17T09:19:12-06:00

Over 2024, the total number of single-family permits issued year-to-date (YTD) nationwide reached 981,834. On a year-over-year (YoY) basis, this is an increase of 8.0% over the 2023 level of 909,227. Year-to-date ending in December, single-family permits were up in all four regions. The range of permit increases spanned 11.1% in the Midwest to 6.2% in the South. The West was up by 10.9% and the Northeast was up by 9.3% in single-family permits during this time. For multifamily permits, three out of the four regions posted declines. The Northeast, driven by New York City’s MSA, was the only region to post an increase and was up by 38.5%. Meanwhile, the West posted a decline of 26.9%, the South declined by 19.5%, and the Midwest declined by 1.1%. Between December 2024 YTD and December 2023 YTD, 45 states posted an increase in single-family permits. The range of increases spanned 33.8% in Montana to 0.1% in South Dakota. The remining five states and the District of Columbia reported declines in single-family permits. The ten states issuing the highest number of single-family permits combined accounted for 63.1% of the total single-family permits issued. Texas, the state with the highest number of single-family permits, issued 158,544 permits over 2024, which is an increase of 9.3% compared to the same period last year. The second highest state, Florida, was down by 0.9%, while the third highest, North Carolina, posted an increase of 6.7%. For 2024, the total number of multifamily permits issued nationwide reached 489,533. This is 12.8% below the 2023 level of 561,369. Between December 2024 YTD and December 2023 YTD, 22 states recorded growth in multifamily permits, while 28 states and the District of Columbia recorded a decline. New York (+128.7%) led the way with a sharp rise in multifamily permits from 15,293 to 34,982, while Idaho had the biggest decline of 53.0% from 5,891 to 2,771. The ten states issuing the highest number of multifamily permits combined accounted for 62.4% of the multifamily permits issued. Over 2024, Texas, the state with the highest number of multifamily permits issued, experienced a decline of 18.6%. Florida, the second-highest state in multifamily permits, saw a decline of 27.5%. California, the third largest multifamily issuing state, decreased by 26.2%. At the local level, below are the top ten metro areas that issued the highest number of single-family permits. For multifamily permits, below are the top ten local areas that issued the highest number of permits. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Single-Family Permits End 2024 with Strong Momentum Danushka Nanayakkara-Skillington2025-02-17T09:19:12-06:00

Student Housing Construction Investment Decreases in the Last Quarter of 2024

Na Zhao2025-02-04T11:17:40-06:00

Private fixed investment in student dormitories edged down by 1.3% in the fourth quarter of 2024, reaching a seasonally adjusted annual rate (SAAR) of $3.86 billion. This decline follows a 1.9% increase in the prior quarter. However, private fixed investment in dorms was 7.2% lower than a year ago, as the elevated interest rates place a damper on student housing construction. Private fixed investment in student housing experienced a surge after the Great Recession, as college enrollment increased from 17.2 million in 2006 to 20.4 million in 2011. However, during the pandemic, private fixed investment in student housing declined drastically from $4.4 billion (SAAR) in the last quarter of 2019 to $3 billion in the second quarter of 2021, as COVID-19 interrupted normal on-campus learning. According to the National Student Clearinghouse Research Center, college enrollment fell by 3.6% in the fall of 2020 and by 3.1% in the fall of 2021. Since then, private fixed investment has rebounded, as college enrollments show a slow but stabilizing recovery from pandemic driven declines. Effective in-person learning requires college students to return to campuses, boosting the student housing sector. Furthermore, the demand for student housing is growing robustly, because total enrollment in postsecondary institutions is projected to increase 8% from 2020 to 2030, according to the National Center for Education Statistics. Despite recent fluctuations, the student housing construction shows signs of recovery and is expected to grow in response to increasing student enrollment projections. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Student Housing Construction Investment Decreases in the Last Quarter of 2024Na Zhao2025-02-04T11:17:40-06:00

Private Residential Construction Spending Rises 1.5% in December

Na Zhao2025-02-03T12:18:39-06:00

Private residential construction spending increased by 1.5% in December 2024, according to the latest U.S. Census Construction Spending data. It was the third consecutive monthly increase since September 2024. On a year-over-year basis, the December report showed a 6% increase. The monthly increase in total private construction spending was primarily driven by higher spending on single-family construction and residential improvements. Single-family construction spending was up 1% for the month. This marks a continuation of growth after a five-month decline from April to August, aligning with steady builder confidence seen in the Housing Market Index. However, single-family construction remained 0.8% lower than a year ago. Improvement spending rose by 2.6% in December and was 21.9% higher compared to the same period last year. In contrast, multifamily construction spending edged down 0.3% in December, following an 8.4% increase in October and a 0.8% up in November. Compared to a year ago, multifamily construction spending was still 10.5% lower. The NAHB construction spending index is shown in the graph below. The index illustrates how spending on single-family construction has slowed since early 2024 under the pressure of elevated interest rates. Multifamily construction spending growth has also slowed down after the peak in July 2023. Meanwhile, improvement spending has increased its pace since late 2023. Spending on private nonresidential construction was up 2.3% over a year ago. The annual private nonresidential spending increase was mainly due to higher spending for the class of manufacturing ($23.6 billion), followed by the power category ($4.5 billion). Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Private Residential Construction Spending Rises 1.5% in DecemberNa Zhao2025-02-03T12:18:39-06:00

Cost of Constructing a Home in 2024

Eric Lynch2025-01-23T08:17:42-06:00

Construction costs account for 64.4% of the average price of a home, according to NAHB’s most recent Cost of Construction Survey. In 2022, the share was 3.6 points lower, at 60.8%. The latest finding marks a record high for construction costs since the inception of the series in 1998 and the fifth instance where construction costs represented over 60% of the total sales price. The finished lot was the second largest cost at 13.7% of the sales price, down more than four percentage points from 17.8% in 2022. The share of finished lot to the total sales price has fallen consecutively in the last three surveys, reaching a series low in 2024. The average builder profit margin was 11.0% in 2024, up less than a percentage point from 10.1% in 2022. At 5.7% in 2024, overhead and general expenses rose when compared to 2022 (5.1%). The remainder of the average home sale price consisted of sales commission (2.8%), financing costs (1.5%), and marketing costs (0.8%). Marketing costs were essentially unchanged while sales commission and financing costs decreased compared to their 2022 breakdowns. Construction costs were broken down into eight major stages of construction. Interior finishes, at 24.1%, accounted for the largest share of construction costs, followed by major system rough-ins (19.2%), framing (16.6%), exterior finishes (13.4%), foundations (10.5%), site work (7.6%), final steps (6.5%), and other costs (2.1%). Explore the interactive dashboard below to view the costs and percentage of construction costs for the eight stages and their 36 components. Table 1 shows the same results as the dashboard above in table format. Please click here to be redirected to the full report (which includes historical results back to 1998). Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Cost of Constructing a Home in 2024Eric Lynch2025-01-23T08:17:42-06:00

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