Walker & Dunlop’s Post

New-home construction swung back to positive territory in April after a March slide, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development said in a press release. New homes were built at a seasonally adjusted annual rate of 1,360,000, up 5.7% from 1,287,000 in March but down 0.6% from 1,368,000 in April 2023. Single-family housing starts, meanwhile, came in at a rate of 1,031,000, down 0.4% from 1,035,000 in March but up 17.7% from 876,000 in April 2023. #Miamirealestate #SouthFloridarealestate #MiamiRealtors #SouthFloridaRealtors

The U.S. Census Bureau released their August 2024 New Residential Construction data, which revealed construction starts declining and completions elevating. Here are some additional findings:   - Multifamily Starts (5+ units): The Seasonally Adjusted Annual Rate (“SAAR”) of starts was 333K, down 45% from its peak in April 2022.   - Completions: August 2024 saw the highest completions in the past decade at a SAAR of 740K units, more than double the ten-year average of 366K units.   - Units Under Construction: Peaked in July 2023 at a SAAR of 1,004,000 units. As of August 2024, this is down 15% to 850K units. The ten-year average is 682K.   Learn more: https://lnkd.in/eCCmG8Mn.   #ConstructionStarts #USCensus #ResidentalConstruction #Multifamily

Development is slowing down: 📉Last month's data shows a near 44% drop nationwide for new multifamily housing compared to last year. 🏗️Permitting for new apartments has also fallen by almost 18%, which signals a slowdown for future developments. 💸Simultaneously, shelter inflation rose nearly 6% since last year -- that's nearly double the rates we saw from 2015-19. These data points demonstrate a significant decrease in supply as expected going into this year. This will drive valuation increases for existing properties in the high demand areas that we are targeting. For example, we have a property under contract in Jacksonville, FL where we've seen a significant decrease in new development in the five mile radius. Here's what this means for our investment: ➡️High occupancy (95%+) ➡️High levels of cash-flow (targeted 7.9%) ➡️Asset appreciation (targeted 2.37x net equity multiple) We find deals like this because we stick to the fundamentals of market analysis (+ we have strong domain expertise and boots on the ground in our preferred submarkets). If you would like to learn more about our Jacksonville property or our investment thesis, send me a direct message or comment below! I'd be happy to share more information. U.S. Census Bureau

One of the common things we hear about Jacksonville is "beware of oversupply!" While this is true for a great portion of the Jax MSA, not all pockets are the same. Delving deep into your submarkets helps you find gem assets like Portofino Club, where new supply is extremely limited in a five mile radius. If you're interested in learning more about this investment, or would like to reserve an allocation, comment "JAX" below.

This is not the momentum we need to add more housing supply 😞 Home builders started work on 3.1% fewer housing units in October than in September, the U.S. Census Bureau said. Permits were also down slightly, by 0.6%. 🏠 Single-family starts fell the most, down 6.9% in October. 🏢 Multifamily starts rose about 10%, a reversal after months of weakness. As this is cyclical and with interest rates surging again, builders may be focusing on completing projects underway rather than starting new projects from the ground up. According to Daniel Vielhaber, "In the details, builders appear to be diverting resources to working through what had been a record backlog in 2022 and 2023, [and] the number of housing completions remains very elevated and the number of housing units under construction continues to dwindle. With rates higher still in November, we could see builders continue to prioritize projects already started."

Many factors can influence the cost of building a new home — location, square footage, materials, and the time it takes to build, to name a few. In 2023, the cost of building a home averaged $313,000 (not including the cost of the land.) This is $200,000 lower than the average sales price of new construction homes in the first quarter of 2024. Costs per square foot average around $150. So far in 2024, home sales prices average $427,700 in the Midwest, $448,600 in the South, $608,100 in the West, and $945,700 in the Northeast, according to the @U.S. Census Bureau. Learn more here: https://lnkd.in/g6agXZbH

https://lnkd.in/gGTiMBza For additional data on residential construction, please see the following news release from the U.S. Census Bureau: https://lnkd.in/g9zwNkiH #homebuilding #singlefamilyhomes #housingstarts #housingpermits #USCensusdata

New Home Completions Continue To Climb: The U.S. Census Bureau and the Department of Housing and Urban Development keep a monthly measure of new home construction. Their report tracks the number of new building permits pulled, the number of homes that began construction, and the number of homes that completed construction during the month. Together, the three components offer a glimpse of where new home construction is and where it may be headed. According to the most recent results, permits and starts were relatively flat from last year in April. Building permits were 2 percent lower than April 2023 and housing starts were 0.6 percent lower than last year. Completions, however, surged. In fact, the number of new homes that completed construction in April was 14.6 percent higher than last year's level. That may be good news for prospective home buyers, as any increase in the number of homes available for sale can help moderate prices while offering buyers more options. (source)

🏗️📉 March saw a decline in both multifamily and single-family starts compared to February, according to the seasonally adjusted annual rates from the latest U.S. Census Bureau data release. Multifamily starts took a significant dive of 20.8%, while single-family starts also experienced a notable drop of 12.4%. #ConstructionTrends #HousingMarket #RealEstateData #CensusBureau

The latest from the U.S. Census Bureau shows continued weakness in the home building space. At the start of the third quarter, the annual rate of privately owned housing starts was 6.8% below the June 2024 estimate, and 16% below the July 2023 rate. Both single-family and multifamily housing starts were below their 2023 levels. Building permits activity was 4% lower than the prior month and 7% lower than their levels last year. On a positive note, housing completions in July were 13.8% higher than their 2023 levels, and single-family housing completions were slightly higher than in June 2024. This should be welcome news for markets that have been hampered by low inventory levels. https://lnkd.in/eTtJNStC