The amount of single-family permits issued through Q1 2019 fell 7.3% year-over-year, with just 185,336 permits issued during the first three months of the year, according to a report from the National Association of Home Builders (NAHB). [1]
Single-family permits issued in Q1 2018 was 199,861.
Since March 2018, single-family permits have seen growth in just 13 states—primarily in the Northeast. The NAHB reports the South saw a decline of 2.9%, single-family permits issued in the Midwest decreased 15.9% and the western states saw a drop of 15.3%.
The District of Columbia recorded the highest growth rate during this time at 88.2%, while single-family permits in South Dakota declined by 30.4%, from 453 in 2018 to 315 in 2019.
Single-family permits in California decreased by 20.6% year-over-year and New York saw a small increase of 2.4%.
The 10 states issuing the highest number of single-family permits combined accounted for 63.5% of the total single-family permits issued.
Although single-family permits lagged in Q1, multifamily permits reached 107,248 through the first three months, which is a 1.3% increase from 2018.
A total of 23 states recorded growth in multifamily permits, with Michigan seeing an increase of nearly 206%, growing to 2,038 permits from 667. New Mexico’s 76% decline was the largest in the nation.
The 10 states issuing the highest number of multifamily permits combined accounted for 64.2% of the multifamily permits issued.
According to a report from the Census Bureau and the U.S. Department of Housing and Urban Development [2] earlier this month, housing completions in March came in at a seasonally adjusted annual rate of a little more than 1.3 million. Although this is 1,9% below February’s rate, it is a 6.8% increase year-over-year.
“Homebuyers looking for more housing supply to choose from can take heart, as builders completed more homes compared with last year, inching closer to balancing inventory with demand,” said Odeta Kushi, Deputy Chief Economist at First American Financial Corporation [3]. “Yet, more is needed to make up for the shortage over the last decade.”