January through April 2008 total housing starts in the U.S. are -28.9% versus the same period last year. However, there is a big difference between the “singles” and “multiples” markets. Single-family starts nationwide are -38.8% while multiples are +11.2%.

Multiple stars are performing better because they are often a lower cost alternative to high-priced singles residences. Their target audience is both owners and renters. On the ownership side, much of the demand comes from young people leaving home for the first time or, at the other end of the age spectrum, empty nesters opting for a downtown lifestyle after years in the suburbs.

At this time, there is also another element in the mix. Foreign money is taking advantage of the several-years decline in value of the U.S. dollar to pick up bargain condo properties in resort areas, mainly in Nevada, ski country and along coastal areas.

Let’s look at unit starts first. After that, I’ll present the percentage changes.

Houston (16,907) is the leading city in the nation for total unit starts so far this year, followed by Dallas (14,667), New York (12,592), Atlanta (8,738), Phoenix (6,896), Chicago (6,866), Seattle (5,913), Los Angeles (5,660), Washington (5,602) and Austin (5,549).

Notice that three of these Top Ten cities are in Texas. Eight of these cities have had large percentage declines versus the same stretch of time last year. Only Dallas (-2.8%) and Austin (-6.4%) are having years that are almost flat versus 2007.

In terms of single-family starts, the frontrunner is again Houston (11,035 units). Rounding out the Top Five in singles are Dallas (6,718), Atlanta (6,625), Phoenix (4,522) and Austin (3,435).

The leaders in the multi-unit market are: New York (9,479 units), Dallas (7,949), Houston (5,872), Chicago (4,083) and Los Angeles (3,796). The Dallas figure is a jump of +75.2% over last year and Houston is only -5.1%. Clearly, Texas is one of the few really hot spots in terms of new housing in the U.S. at this time.

Where this all gets really interesting is in terms of percentage changes. Only one major city has had a percentage increase in total starts so far this year versus last year, San Francisco (+4.4%). Not one major city has had a percentage increase in single-family starts. (The lowest decline has been in New Orleans at -16.1%.)

However, there have been quite a number of impressive gains in multi-family starts. Considering only those cities in which multi-family starts are in excess of 1,000 units so far this year, there have been eight markets with percentage increases. In order, those eight cities are: Kansas City (+278.9%); San Francisco (+86.3%); Dallas-Fort Worth (+75.2%); Austin (+64.5%); Las Vegas (+42.7%); Philadelphia (+31.5%); Charlotte (+16.8%); and Orlando (+5.9%).

Alex Carrick

Find Canadian construction-related economic articles in Canadian Construction Market News and in the Economic Outlook section of Daily Commercial News.

» View all comments (0 total comments)

Post Your Own Comments 

» Not a member? Register now to become one. Otherwise, login to post your comments on this article.

11/20 - Labor Markets in a Recession − Production Workers to Take a Pasting

11/17 - The Most Serious Letter in the Alphabet

11/14 - Canada’s Construction Starts have Underperformed in 2008

11/11 - What President-elect Barack Obama will mean for Canada

11/10 - The Wise Old Rooster

» Back to Alex's Blog