Western States Lead Single-family Residential Permits Growth, Northeast Lags
Over the first five months of 2018, the total number of single-family permits issued year-to-date (YTD) nationwide reached 363,327. On a year-over-year basis, this is an 8.0% increase over the May 2017 level of 336,410. The results from the SOC are similar, year-to-date single-family permits over the first five months of 2018 was, 363,700 which is 8.6% ahead of its level over the same period of 2017, 335,000*.
Year-to-date, across the country, single-family permits grew in all the regions except in the Northeast where it declined by 1.0% compared to May 2017 YTD. Out of the nine Northeastern states, only three, New Hampshire, New York, and Pennsylvania recorded an increase in single-family permit growth during this time while the other six states declined. Western region had the highest growth in single-family while South recorded the highest multifamily permits growth during the last 12 months.
Between May 2017 YTD and May 2018 YTD, 33 states saw growth in single-family permits issued while 17 states and the District of Columbia registered a decline. Colorado recorded the highest growth rate during this time at 28.7% while single-family permits in the District of Columbia declined by 72.8%, but from a small base, from 180 in 2017 to 49 in 2018.
In the single-family sector, Texas led with 53,293 permits issued year-to-date in May 2018 and Florida came in second with 39,173 during this time. Meanwhile the lowest number came from the District of Columbia with 49 permits. The 10 states issuing the highest number of single-family permits combined accounted for 61.0% of the single-family permits issued.
The 8.0% increase in the nationwide growth rate of year-to-date single-family permits, is largely due to the aggregate increase in single-family permits across the Western states. Out of the 13 which are classified as Western states, nine states recorded single-family permit growth exceeding the national average. A total of 20 states recorded growth rates higher than the national average. Nine of these came from the Western region of the county, seven from the South, and three from the Midwest. New Hampshire was the lone state to record single-family permit growth higher than the national rate from the Northeast region.
Year-to-date, ending in May 2018, the total number of multifamily permits issued nationwide reached 187,605. This is 13.3% ahead of its level over the first five month of 2017, 165,645. The increase in nationwide growth rate is due to the increases across Southern and Western states which posted growth rates of 17.9% and 17.0% respectively. The results from the SOC show an increase of 9.5% in multifamily permits over the first five months of 2018, 186,900 compared to the same period of 2017, 170,700.
Between May 2017 YTD and May 2018 YTD, 34 states recorded growth while 16 states and the District of Columbia recorded a decline in multifamily permits. Rhode Island lead the way with a growth rate of 365.2%, from 23 to 107, while Mississippi had the largest decline of 85.9% from 866 to 122.
Source: NAHB Eye on Housing