January Residential Permit Snapshot

Hi everyone, below are the updated permit numbers through January.

Single Family

The trailing 12-month single family count is at 26,392, right at the average since 2000. That may be the average but if you look at the graph, it’s rare for the market to actually be at or near the average.

On the Wall Street front, XHB (SPDR S&P Homebuilders ETF) is still at an all-time high, showing there is still much optimism for homebuilding. Current price is $102.50, which has rallied off of the Q3 ‘23 dip to $69.36.

Multifamily

Multifamily permits ticked back up again as the trailing12-month count came in at 22,181. The monthly was 1,831, which is right at the average over the last 12 months. The average since 2000 is 8,647 so we are permitting at roughly 2.5 times that number currently.

The FTSE NAREIT Equity Apartments Index has been in a downtrend since mid-December ‘23 but looks like it may be flattening out.

Combined

The combined trailing 12-month permit rose modestly over the previous month and year. With the single-family count hovering near the longer-term average, the higher-than-average count here can be attributed to the elevated multifamily permit count.

Thanks for reading, as always, please reach out with anything we can help you with.

Until next time,

John & Ramey