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New multifamily construction rose<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> in March on a monthly and yearly basis, according to HUD and the U.S. Census Bureau’s latest residential construction report released Wednesday.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The seasonally adjusted March rate for construction of units in buildings with five units or more was 446,000, representing a 13.5% year over year increase and a 9.6% uptick from the previous month, per the report. Single-family housing starts in March were at a rate of 1 million, which is 9.7% above the revised February figure and up 8.9% YOY.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Overall, privately owned housing starts in March were at a seasonally adjusted annual rate of 1.5 million, which is 10.8% above both the revised February estimate and the March 2025 rate. The Northeast region showed the greatest strength in overall new residential construction, rising 18.9% from last year, followed by the South with a 14.1% increase.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n HUD and the Census Bureau also released initial estimates for February in the report. The rate for starts for buildings with five or more units stood at 407,000, down 14.9% from January. Overall, new housing construction was at a seasonally adjusted annual rate of 1.36 million in February, down 3% from the previous month.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Broad affordability challenges continue to impact many households, National Apartment Association Vice President of Research George Ratiu told Multifamily Dive in an email.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cNew residential construction in February and March underscored the challenges of the current housing market, where builders are walking a precarious line to meet the need for more affordable supply within the constraints of rising inflation and interest rates,\u201d Ratiu said. \u201cHome builder sentiment has been in the doldrums for a year, as slow foot traffic and sales push almost two-thirds of construction companies to offer sales incentives.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Multifamily building permits, which signal future construction activity, dropped in March to 427,000, down 23.5% MOM and down 5.3% YOY, according to the release. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Overall housing permits fell too, coming in at a rate of 1.37 million, which is 10.8% below the revised February rate and down 7.4% from the same period last year. The South had the highest drop in overall residential permits, down 14% YOY.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Multifamily project completions stood at a seasonally adjusted rate of 452,000 in March. That\u2019s up 10.2% from February but down 9.1% from last year, per the release. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Overall residential completions were at a seasonally adjusted annual rate of 1.37 million, essentially flat from February but down 12.8% YOY. Those overall completions rose 75.9% YOY in the Northeast, but fell in all other regions.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Click <\/span><\/em><\/span><\/span><\/span><\/span><\/span>here<\/span><\/span><\/span><\/em><\/span><\/span><\/span><\/span><\/span><\/a> to sign up to receive multifamily and apartment news like this article in your inbox every weekday.<\/span><\/em><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\nMixed signals<\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n