New Housing Looking Better! February 21, 2024

The government tracks how many new houses are being built by gathering the number of new house permits are issued by counties and other municipalities.  They separate those into single family building permits and multi family (duplex, fourplex, apartments, etc) building permits.  It’s a good measure of what is happening in the economy.  Ever since the recession of 2008/2009, there has been a shortage of single family housing.  Just not enough houses for people to buy.  Combine that with the Covid effects on our economy and building prices going crazy high, we have seen more multifamily permits than single family.

Total housing permits (both single family and multifamily) in January fell 15% from December and almost 1% over the past year.  However, single-family permits rose 1.6% in January from December, but are up 36% over the past year.  Conversely, multifamily permits fell 9% in January from December and 27% over the past year.  Single-family activity is strong and growing while multifamily continues to rapidly decrease.  This is good news for residential mortgage lending!!!