- Single-family construction permits shot up through October 2024, with notable growth in the West (+13.6%), Midwest (+12.4%), and Northeast (+10.8%).
- Texas led single-family permit issuance with 136.4K permits, up 9.7% YoY, followed by strong activity in Florida and North Carolina.
- Multifamily construction permits fell 16.2% YTD, with sharp drops in the South, West, and Midwest.
- The Northeast saw a 26.6% increase, driven by markets like New York City (+50%).
Single-family construction permits surged nationwide through October 2024 as more developers pivot away from multifamily, as reported by GlobeSt.
Region by Region
The West led all regions with a 13.6% YTD increase, followed by the Midwest (+12.4%) and Northeast (+10.8%). The South posted a smaller growth rate (+7.2%), signaling more stable activity in some areas.
Texas emerged as the leader in single-family construction, issuing 136,374 permits, up 9.7% YoY. Other high-performing states included Florida and North Carolina, which have also seen robust demand for new housing.
Top metros for single-family permits included:
- Houston-Pasadena-The Woodlands, TX: 45,310 permits (+4% YOY)
- Dallas-Fort Worth-Arlington, TX: 40,563 (+13%)
- Phoenix-Mesa-Scottsdale, AZ: 26,296 (+29%)
- Atlanta-Sandy Springs-Roswell, GA: 22,340 (+9%)
- Charlotte-Concord-Gastonia, NC/SC: 16,266 (unchanged YOY)
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Multifamily Facing Declines
While single-family housing surged, multifamily construction permits faced significant declines. Total permits for multifamily projects dropped 16.2% YTD, falling from 481,612 in 2023 to 403,422 in 2024.
The downturn was especially sharp in the South, West, and Midwest, where double-digit drops were reported.
The Northeast, however, bucked the trend with a 26.6% YTD increase in multifamily permits. This growth was largely driven by:
- New York City, which saw a 50% increase in multifamily permits.
- Strong activity in Boston and Philadelphia, supporting the region’s overall increase.
Housing Market Outlook
The surge in single-family construction reflects developers’ prioritization of new housing to address rising demand, particularly in high-growth areas.
However, the decline in multifamily construction highlights challenges such as rising costs, shifting demand, and economic uncertainty.
While single-family housing growth is a step toward addressing the housing shortage, the impact will take years to fully materialize, leaving affordability concerns and regional disparities as ongoing challenges for policymakers and developers alike.inue rebalancing their portfolios to minimize exposure to underperforming assets.
