US housing construction reaches post-crisis record

An annualized 1.14M residential building permits filed in April: Census Bureau

TRD NEW YORK /
May.May 19, 2015 11:30 AM

The U.S. housing market continues its slow but steady recovery, with building permits filed in April rising to the highest level since 2007.

According to new data from the U.S. Census Bureau, building permits for private-housing units in April reached a seasonally adjusted, annualized total of 1,143,000. This is 10.1 percent higher than the 1,038,000 recorded in March and 6.4 percent above the April 2014 level of 1,059,000.

While these numbers are encouraging, the recovery is far from complete. Residential construction plummeted in the aftermath of the 2007 mortgage crisis, and stayed at historically low levels through 2011 (see chart above). The market has since recovered, but permits are still well below their average from the 1990s and early 2000s. Between January 1994 and September 2007, the number of building permits never fell below 1.2 million and was above 2 million almost every month from 2004 to 2006.

“I think we still have a ways to go (in the recovery),” said Sam Chandan, chief economist at Chandan Economics. He explained that much of the growth in permits is coming not from single-family homes, but from multifamily housing. In other words: more units are being built today, but they are on average smaller and many of them are rentals. “That does not suggest a balance in the housing market,” Chandan added.

Compared to the national market, residential construction in New York City dropped much more precipitously during the crisis, but has also rebounded more strongly since (see chart above). In 2014, the Department of Buildings authorized the construction of 21,478 new residential units, according to NYU’s Furman Center. This is still below the levels of 2007 and 2008, but well above the 2010 low of 1,647. And unlike the U.S. as a whole, New York City is now issuing more residential building permits than it did in the early 2000s.


Related Articles

arrow_forward_ios
TRD Talks Live

Watch tonight: Turning to tech on TRD Talks Live

(Credit: iStock)

Strong quarter for Manhattan home sales belies current struggle

Manhattan resi listings continue nosedive: report

Manhattan resi listings continue nosedive: report

252 East 57th Street and 196 Orchard Street with Samantha Sheeber and Tal Alexander

Closing in the time of Covid-19: “We’re pulling out all the stops”

Kuwait’s consul general in New York, Hamad Al-Hazeem and 50 United Nations Plaza (Credit: Google Maps)

Kuwait’s consul general buys 50 UN Plaza pad for $16M

Web searches for terms including “homes for sale” are way down up north. (Credit: Pixabay)

Fewer Canadians are searching for homes online amid pandemic

Massive stimulus package has limited upside for real estate

Massive stimulus package has limited upside for real estate

About 450 sellers pulled their listings last week (Credit: iStock)

As New York shut down, so did its resi market

arrow_forward_ios
Loading...