The new multi-family building is being erected in March on a monthly and annual basis, according to HUD and the latest U.S. Census Bureau residential construction report released Wednesday.
According to the report, March’s seasonally adjusted rate of construction of units in buildings of five units or more was 446,000, representing a 13.5% year-over-year increase and a 9.6% increase from the previous month. Single-family housing starts in March stood at a rate of 1 million, 9.7% above the revised figure for February and 8.9% more year-on-year.
Overall, privately owned housing starts in March came in at a seasonally adjusted annual rate of 1.5 million, which is 10.8% above both the revised February estimate and the March 2025 rate. The Northeast region showed the strongest overall new residential construction, with an 18.9% increase over last year, followed by the South with an increase of 14.1%.
HUD and the Census Bureau also released initial estimates for February in the report. The rate of starts for buildings of five or more units stood at 407,000, down 14.9% from January. Overall, new home construction stood at a seasonally adjusted annual rate of 1.36 million in February, down 3% from the previous month.
mixed signals
Broad affordability challenges continue to affect many households, National Apartment Association Vice President of Research George Ratiu told Multifamily Dive in an email.
“New residential construction in February and March underlined the challenges in the current housing market, where builders are walking a precarious line to meet the need for more affordable supply within the constraints of inflation and rising interest rates,” Ratiu said. “Homebuilder sentiment has slumped for a year as traffic and sales slow nearly two-thirds of construction firms to offer sales incentives.”
Multifamily building permits, which indicate future construction activity, fell to 427,000 in March, down 23.5% year-over-year and 5.3% down, according to the statement.
Global housing permits also fell to a pace of 1.37 million, which is 10.8% below February’s revised rate and down 7.4% from the same period last year. The South had the highest drop in total residential permits, 14% year-on-year.
Multifamily project completions were at a seasonally adjusted pace of 452,000 in March. This represents an increase of 10.2% compared to February, but 9.1% less than last year, according to the statement.
Global home completions came in at a seasonally adjusted annual pace of 1.37 million, essentially flat from February, but down 12.8% year-over-year. These overall completions were up 75.9% year-over-year in the Northeast, but fell in all other regions.
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