The 7 Important Things to Know about Residential Construction


The Census Bureau’s new data on residential construction is out, but as always, we’re here to report on what lies between the lines.

Housing starts in the month of May reached a seasonally adjusted annual rate of just over one million, a 6.5 percent decline from April but a 9.4 percent uptick from May 2013, according to new numbers from the U.S. Census Bureau. Building permits, meanwhile, were down 6.4 percent monthly and 1.9 percent yearly.

Those were the headline-grabbing stats in the report, but as usual, there were more implicit findings that spoke more persuasively to what is actually happening in residential construction right now. Here are nine of the biggest takeaways:

1. Record Lows – Single-family homes accounted for just 62 percent of housing starts in April and May; that’s the lowest market share for single-family new construction since the early ’80s.

2. Multifamily Rules – In case you’re wondering, the answer is YES, multifamily is still ruling the day when it comes to gains in new construction. Here’s a great graph from The Wall Street Journal that shows the current trend:


3. They Come in Thirds – More specifically, multifamily construction made up 37 percent of starts in May, and year to date they’ve made up 35 percent; on an annual basis, that’s the highest share for multifamily in 40 years.

4. More Inventory on the Way – One definite piece of good news in the report, though, was housing completions, which rose 6.8 percent monthly and 24.8 percent yearly to a five-year high; though we haven’t quite jumped on the analytical bandwagon that argues that low construction is solely to blame for today’s inventory woes, such completions will certainly help matters.

5. Renters’ Relief – Completions in the multifamily sector have risen most of all, jumping 47 percent year to date; that will be very helpful for consumers being squeezed by rising rents.

6. A Formative Shift? – Though we’ve just witnessed another strong month for multifamily, it’s not enough to rule out single-family-enriched suburbs; renter household formation and single-family overbuilding during the boom years is still driving multifamily’s ascent, so we can’t proclaim a permanent shift in America’s housing preferences just yet.

7. Things are Still Improving – Though construction has bounced along irregularly thus far in 2014, overall trends remain quite positive. Firstly, when looking at housing starts over a three-month moving average, they’re actually up 10 percent year-over-year, with multifamily up 18 percent; secondly, housing starts have been at a rate of more than one million in four of the last seven months, which hasn’t happened since – you guessed it – 2008.

Read More Related to This Post


  • I just want to tell you that I am newbie to blogs and actually loved you’re blog site. Likely I’m want to bookmark your blog post . You actually have awesome articles. Thanks a lot for sharing with us your webpage.

  • hello!,I love your writing so so much! proportion we be in contact more approximately your post on AOL? I need an expert in this area to solve my problem. Maybe that is you! Looking ahead to peer you.

  • Yesterday, while I was at work, my cousin stole my iphone and tested to see if it can survive a 40 foot drop, just so she can be a youtube sensation. My apple ipad is now broken and she has 83 views. I know this is completely off topic but I had to share it with someone!|

  • I¡¦ll immediately snatch your rss feed as I can not in finding your email subscription hyperlink or newsletter service. Do you’ve any? Please allow me realize in order that I may just subscribe. Thanks.

  • I cling on to listening to the reports talk about getting boundless online grant applications so I have been looking around for the finest site to get one. Could you advise me please, where could i acquire some?

  • Legal Forms says:

    I¡¦m not positive the place you’re getting your information, but good topic. I needs to spend a while learning more or figuring out more. Thanks for great information I used to be on the lookout for this information for my mission.

  • Wonderful beat ! I wish to apprentice while you amend your website, how can i subscribe for a blog web site? The account aided me a acceptable deal. I had been tiny bit acquainted of this your broadcast offered bright clear concept

  • I simply could not depart your web site before suggesting that I really loved the usual info a person provide to your guests? Is going to be again ceaselessly in order to inspect new posts

  • You completed certain fine points there. I did a search on the subject and found nearly all folks will consent with your blog.

  • you are in reality a excellent webmaster. The site loading velocity is amazing. It seems that you’re doing any unique trick. Moreover, The contents are masterwork. you have performed a fantastic activity on this topic!

  • You actually make it seem so easy with your presentation but I find this matter to be really something that I think I would never understand. It seems too complicated and very broad for me. I am looking forward for your next post, I’ll try to get the hang of it!

  • Thanks for all of your efforts on this website. My aunt takes pleasure in doing investigations and it’s really easy to see why. We all learn all of the lively means you give informative solutions through this web blog and as well invigorate response from some other people on the area of interest while our own simple princess is without question becoming educated a lot of things. Take advantage of the remaining portion of the new year. Your conducting a very good job.

  • I have recently started a web site, the info you provide on this site has helped me greatly. Thank you for all of your time & work.

  • Thanks for some other wonderful post. Where else may anybody get that type of info in such a perfect approach of writing? I’ve a presentation subsequent week, and I am at the look for such info.

  • I have to get across my admiration for your kind-heartedness supporting people who really want help on this particular area of interest. Your special dedication to getting the message throughout was remarkably interesting and have all the time encouraged ladies much like me to arrive at their aims. Your useful guidelines entails much to me and especially to my office colleagues. Regards; from all of us.

  • I truly appreciate this post. I¡¦ve been looking all over for this! Thank goodness I found it on Bing. You have made my day! Thank you again

  • You actually make it appear really easy along with your presentation but I in finding this topic to be actually something that I think I’d never understand. It sort of feels too complex and extremely huge for me. I am looking ahead for your subsequent publish, I will attempt to get the hold of it!

  • Flokati Rug says:

    I do not even know how I ended up here, but I thought this post was good. I don’t know who you are but definitely you’re going to a famous blogger if you are not already 😉 Cheers!

  • It is appropriate time to make some plans for the future and it is time to be happy. I have read this post and if I could I desire to suggest you some interesting things or suggestions. Maybe you could write next articles referring to this article. I wish to read more things about it!

  • Website SEO says:

    you’re really a just right webmaster. The site loading speed is incredible. It sort of feels that you are doing any unique trick. Moreover, The contents are masterwork. you’ve done a magnificent activity in this topic!

  • magnificent post, very informative. I ponder why the other experts of this sector don’t realize this. You should proceed your writing. I am sure, you’ve a huge readers’ base already!

  • Of course, what a magnificent website and instructive posts, I definitely will bookmark your site.All the Best!

  • I think this is among the most important information for me. And i’m glad reading your article. But wanna remark on few general things, The website style is perfect, the articles is really excellent : D. Good job, cheers

  • I really wanted to send a small comment to express gratitude to you for these precious tips and tricks you are showing here. My prolonged internet investigation has at the end of the day been rewarded with wonderful suggestions to write about with my friends and classmates. I would say that we site visitors are unquestionably fortunate to live in a great network with very many perfect people with very beneficial tips and hints. I feel extremely lucky to have encountered your site and look forward to many more fun moments reading here. Thank you once more for everything.

  • Tomas Werk says:

    My husband and i felt really more than happy Edward managed to finish off his research from the precious recommendations he gained through your web page. It’s not at all simplistic to just choose to be offering information and facts which people might have been trying to sell. And we all fully grasp we’ve got the website owner to appreciate for this. The illustrations you have made, the simple website menu, the friendships your site aid to create – it’s everything wonderful, and it’s helping our son in addition to the family believe that this matter is satisfying, which is certainly unbelievably mandatory. Thanks for all the pieces!

  • hey there and thank you for your info – I have definitely picked up anything new from right here. I did however expertise some technical issues using this site, since I experienced to reload the web site many times previous to I could get it to load correctly. I had been wondering if your hosting is OK? Not that I’m complaining, but sluggish loading instances times will often affect your placement in google and could damage your high quality score if ads and marketing with Adwords. Anyway I’m adding this RSS to my email and can look out for much more of your respective fascinating content. Make sure you update this again very soon..

  • that’s good, thanks for sharing,.. I think this is great blog

  • Hello my friend! I want to say that this article is awesome, nice written and include almost all important infos. I’d like to see more posts like this.

  • Thanks for another informative blog. Where else may I get that type of info written in such a perfect approach? I have a challenge that I am just now operating on, and I’ve been at the look out for such information.

  • that’s good, thanks for sharing,.. I think this is great blog

  • that’s good, thanks for sharing,.. I think this is great blog

  • I am no longer certain where you’re getting your information, however good topic. I must spend a while learning much more or understanding more. Thanks for wonderful info I used to be in search of this information for my mission.

  • Business says:

    that’s good, thanks for sharing,.. I think this is great blog

  • My brother suggested I might like this blog. He was entirely right. This post truly made my day. You cann’t imagine just how much time I had spent for this information! Thanks!

  • You really make it seem so easy with your presentation but I find this matter to be actually something that I think I would never understand. It seems too complicated and extremely broad for me. I’m looking forward for your next post, I’ll try to get the hang of it!

  • I have been exploring for a bit for any high-quality articles or blog posts on this sort of house . Exploring in Yahoo I at last stumbled upon this website. Reading this information So i am satisfied to exhibit that I’ve a very excellent uncanny feeling I came upon exactly what I needed. I so much indubitably will make sure to do not overlook this web site and give it a look on a constant basis.

  • that’s good, thanks for sharing,.. I think this is great blog

  • Of course, what a splendid blog and instructive posts, I definitely will bookmark your site.Best Regards!

  • magnificent points altogether, you just gained a emblem new reader. What may you suggest about your submit that you made a few days in the past? Any certain?

  • Hello there, You’ve done an incredible job. I’ll definitely digg it and personally suggest to my friends. I am sure they will be benefited from this website.

  • Someone necessarily lend a hand to make seriously posts I’d state. This is the first time I frequented your web page and up to now? I amazed with the research you made to create this actual submit extraordinary. Wonderful activity!

  • What i do not realize is in truth how you are not really a lot more smartly-appreciated than you may be right now. You’re so intelligent. You already know therefore significantly in relation to this matter, produced me individually imagine it from so many numerous angles. Its like women and men don’t seem to be involved except it is something to accomplish with Woman gaga! Your personal stuffs outstanding. All the time take care of it up!

Join the conversation

Oops! We could not locate your form.