Julie Falcon of HousingWire writes that multi-family construction growth during Q2 2019 has, according to RealPage, slowed to its lowest level in nearly four years. Such multi-family construction growth is down on a national level by -5.5% YOY.
Despite only 526,300 units currently being built, that number of “underway” units is still far above normal almost doubling the long-term norm. Additionally building permits for multi-family units dropped to its lowest level in more than two years, according to the Bureau of Labor Statistics.
Areas experiencing the “slowest” slowdowns in multi-family construction include:
– New York-White Plains -42.8%
– Columbus OH -32,7%
– Anaheim-Santa Ana -30.5%
– Tampa-St. Petersburg -28.1%
– San Antonio-Braunfeld TX -26.5%
– Portland-Vancouver -23.2%
– Orlando-Kissimmee FL -23.2%
In terms of apartment supply and supply change, here is what multi-family construction growth looks like nation-wide:
Apartment Supply
Unit Supply Change
– Dallas-Ft. Worth 22,196 -20%
– Seattle 13,682 +17%
– New York-Newark 13,418 -26%
– Miami-Ft. Lauderdale 13.031 -3%
– Austin-Round Rock 10,783 +1%
– Atlanta 10,381 +8%
– Los Angeles-Long Beach 9,768 -23%
– Phoenix-Mesa 9,670 +18%
– DC-Arlington 9,271 -26%
– Houston 7,143 -34%
– Chicago 6,975 -14%
– Denver-Aurora 6,836 -49%
– Orlando 6,143 +2%
– San Jose-Sunnyvale 6,044 +283%***
– Charlotte-Concord 6,003 -2%
Detroit and Riverside CA have, along with San Jose-Sunnyvale, increased apartment supply by triple digits, +292% and +243% respectively. (No data was available concerning unit numbers in either city.)
Meanwhile, multi-family occupancy and originations have surged. According to the Mortgage Bankers Association’s Quarterly Survey of Commercial and Multi-Family Mortgage Bankers Originations, originations for loans on multi-family properties/developments increased a whopping +10% annually in Q2 2019 and an eye-popping +29% from Q1 2019 to Q2 2019. Additionally, dollar valuations for multi-family properties increased +15% in Q2 2019.
Freddie Mac predicted that 2019 multi-family growth would benefit from the housing shortage, strong labor market and low interest rates.
Thanks to Julie Falcon of HousingWire for source data.
