{"id":32435,"date":"2025-09-22T21:10:58","date_gmt":"2025-09-23T04:10:58","guid":{"rendered":"https:\/\/essential.construction\/news\/apartment-starts-rise-16-yoy-in-august\/"},"modified":"2025-09-22T21:10:58","modified_gmt":"2025-09-23T04:10:58","slug":"apartment-starts-rise-16-yoy-in-august","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/apartment-starts-rise-16-yoy-in-august\/","title":{"rendered":"Apartment starts rise 16% YOY in August"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Brief:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<ul>\n<li><span><span><span><span><span><span>Starts for buildings with five or more units fell <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.census.gov\/construction\/nrc\/pdf\/newresconst.pdf\" target=\"_blank\"><span><span><span><span><span><span><span><span>11% month over month<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in August and rose 15.8% year over year to a seasonally adjusted rate of 403,000 apartments, according to the monthly report from HUD and the U.S. Census Bureau.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Apartment developers pulled permits for a seasonally adjusted rate of 403,000 apartments in buildings with five units or more, matching the number of starts. That was a 10.8% YOY decrease and a 6.7% decline compared to July.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Overall housing starts came in at a seasonally adjusted annual rate of 1.3 million in August \u2014 a 6% decrease YOY and 8.5% below the revised July estimate. Single-family starts clocked in at a rate of 890,000 homes, a 11.7% YOY fall and a 7% month-over-month decline.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Insight:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>At the end of August, 686,000 units were under construction, a 20.2% YOY drop and a 1% month-over-month decline. Multifamily developers finished an annualized 503,000 apartments in buildings with five or more units, a 28.7% YOY drop and a 10.8% month-over-month increase.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe were starting to feel, I guess, better about the supply numbers,\u201d Greg Willett, chief economist at Dallas-based lease insurance provider LeaseLock said. \u201cThe fourth quarter looks like it&#8217;s going to be the first quarter in two and a half years when fewer than 100,000 units get delivered.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>These large YOY declines in completions are welcome news for apartment operators and developers. \u201cOn a national basis, it&#8217;s obvious that the supply is dwindling down,\u201d said Brian Austin, chief operating officer \u2013 East for Scottsdale, Arizona-based Alliance Residential. \u201cThe deliveries are declining.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>But even with the decline in supply, Austin sees a relatively stagnant development market through the end of 2025.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cI think after the first of the year, we&#8217;re hopeful that capital will re-engage and increase their appetite for development,\u201d Austin said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Austin said the projects Alliance is currently starting should be successful.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThose deals that we&#8217;re able to get done will be the most successful deals that we do, just because we&#8217;ll be hitting the market with these deals when there&#8217;s a dwindling supply,\u201d Austin said. \u201cYou&#8217;re going to see rent growth and that.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In addition, finding labor is easier than it was a couple of years ago, Austin said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cSince there&#8217;s not a lot of new construction, we will be able to get better pricing from our subcontractors and a better basis on those deals,\u201d Austin said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><em><span>Click<\/span><\/em><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.multifamilydive.com\/signup\/?utm_campaign=Multifamily-Dive-Editorial-Promotion-Sources04032022&amp;\" target=\"_blank\"><span><span><span><span><em><span><span><span> here<\/span><\/span><\/span><\/em><\/span><\/span><\/span><\/span><\/a><span><span><span><span><em><span> to sign up to receive multifamily and apartment news like this article in your inbox every weekday.<\/span><\/em><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/apartment-starts-august-construction\/760728\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Dive Brief: Starts for buildings with five or more units fell 11% month over month in August and rose &#8230; <a title=\"Apartment starts rise 16% YOY in August\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/apartment-starts-rise-16-yoy-in-august\/\" aria-label=\"Read more about Apartment starts rise 16% YOY in August\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-32435","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/32435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=32435"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/32435\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=32435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=32435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=32435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}