Permits Decline At The Start of 2023
Danushka Nanayakkara-Skillington2023-03-14T09:27:13-05:00By Danushka Nanayakkara-Skillington on March 14, 2023 • Over the first month of 2023, the total number of single-family permits issued year-to-date (YTD) nationwide reached 53,062. On a year-over-year (YoY) basis, this is 36.4% below the January 2022 level of 83,404. Year-to-date ending in January, single-family permits declined in all four regions. The Northeast posted a decline of 20.3%, while the West region reported the steepest decline of 46.9%. The Midwest declined by 39.1% and the South declined by 33.5% in single-family permits during this time. The South posted an increase of 16.4% in multifamily permits while the other three regions posted declines. Multifamily permits were down 33.1% in the Northeast, down 24.2% in the Midwest, and down 11.1% in the West. Between January 2022 YTD and January 2023 YTD, the District of Columbia, North Dakota, and New Mexico saw growth in single-family permits issued. The District of Columbia recorded the highest growth rate during this time at 20.0% going from 10 permits to 12. Forty-eight states reported a decline in single-family permits during this time ranging from 2.9% decline in New Jersey to 60.7% decline in Arizona. The ten states issuing the highest number of single-family permits combined accounted for 65.6% of the total single-family permits issued. Year-to-date, ending in January, the total number of multifamily permits issued nationwide reached 47,936. This is 2.0% below the January 2022 level of 48,912. Between January 2022 YTD and January 2023 YTD, 23 states and the District of Columbia recorded growth, while 26 states recorded a decline in multifamily permits. Rhode Island reported no change. The District of Columbia led the way with a sharp rise in multifamily permits from four to 788 while Maine had the largest decline of 83.0% from 147 to 25. The ten states issuing the highest number of multifamily permits combined accounted for 69.1% of the multifamily permits issued. At the local level, below are the top ten metro areas that issued the highest number of single-family permits. Top 10 Largest SF Markets January 2023 (# of units YTD, NSA) YTD % Change(compared to Dec 2021) Houston-The Woodlands-Sugar Land, TX 2,692 -40% Dallas-Fort Worth-Arlington, TX 2,244 -44% Atlanta-Sandy Springs-Roswell, GA 1,348 -41% Charlotte-Concord-Gastonia, NC-SC 1,324 -19% Phoenix-Mesa-Scottsdale, AZ 1,102 -63% Orlando-Kissimmee-Sanford, FL 1,077 -32% Tampa-St. Petersburg-Clearwater, FL 954 -35% New York-Newark-Jersey City, NY-NJ-PA 945 -4% Nashville-Davidson–Murfreesboro–Franklin, TN 900 -34% Austin-Round Rock, TX 892 -59% For multifamily permits, below are the top ten local areas that issued the highest number of permits. Top 10 Largest MF Markets January 2023 (# of units YTD, NSA) YTD % Change(compared to Dec 2021) Houston-The Woodlands-Sugar Land, TX 3,574 147% Atlanta-Sandy Springs-Roswell, GA 2,359 318% Dallas-Fort Worth-Arlington, TX 2,336 -18% New York-Newark-Jersey City, NY-NJ-PA 1,638 -55% Washington-Arlington-Alexandria, DC-VA-MD-WV 1,430 2% Miami-Fort Lauderdale-West Palm Beach, FL 1,384 21% Denver-Aurora-Lakewood, CO 1,367 162% Raleigh, NC 1,223 112% Tampa-St. Petersburg-Clearwater, FL 1,156 1462% San Antonio-New Braunfels, TX 983 -38% Related ‹ Employment Situation in January: State-Level AnalysisTags: home building, multifamily, single-family, state and local markets, state permits