Over the first eleven months of 2023, the total number of single-family permits issued year-to-date (YTD) nationwide reached 843,654. On a year-over-year (YoY) basis, this is 8.5% below the November 2022 level of 921,626.
Year-to-date ending in November, single-family permits declined in all four regions. The range of permit decline spanned 6.8% in the South to 12.6% in the West. The Northeast declined by 7.1% and the Midwest declined by 9.5% in single-family permits during this time. For multifamily permits, the percentage decline spanned 12.7% in the West region to 28.2% in the Northeast. The South declined by 14.0% and the Midwest declined by 21.4% in multifamily permits during this time.
Between November 2022 YTD and November 2023 YTD, except for Hawaii (+17.2%), Maryland (+7.9%), Nevada (+0.4%), and West Virginia (+0.3%), all other states and the District of Columbia reported declines in single-family permits. The range of declines spanned 0.3% in New Jersey to 61.9% in the District of Columbia. The ten states issuing the highest number of single-family permits combined accounted for 63.8% of the total single-family permits issued. Texas, the state with the highest number of single-family permits issued, declined 8.7% in the past 12 months; The succeeding highest states, Florida and North Carolina, had a decline of 8.2% and 1.0% respectively.
Year-to-date, ending in November, the total number of multifamily permits issued nationwide reached 520,919. This is 16.5% below the November 2022 level of 624,128.
Between November 2022 YTD and November 2023 YTD, 16 states recorded growth in multifamily permits, while 34 states and the District of Columbia. recorded a decline. Tennessee (+66.8%) led the way with a sharp rise in multifamily permits from 9,194 to 15,337, while Wyoming had the greatest decline of 78.4% from 1,046 to 226. The ten states issuing the highest number of multifamily permits combined accounted for 63.4% of the multifamily permits issued. Over the last 12 months, Texas, the state with the highest number of multifamily permits issued, experienced a decline of 22.4%. Following closely, the second-highest state in multifamily permits, Florida, saw a decline of 11.6%. Conversely, California, the third largest multifamily issuing state, increased by a modest 1.9%.
At the local level, below are the top ten metro areas that issued the highest number of single-family permits.
| Top 10 Largest Single-Family Markets | Nov-23 (# of units YTD, NSA) | YTD % Change (compared to Nov-22) |
| Houston-The Woodlands-Sugar Land, TX | 46,635 | 2% |
| Dallas-Fort Worth-Arlington, TX | 39,238 | -5% |
| Phoenix-Mesa-Scottsdale, AZ | 22,755 | -12% |
| Atlanta-Sandy Springs-Roswell, GA | 22,287 | -12% |
| Charlotte-Concord-Gastonia, NC-SC | 17,650 | -1% |
| Orlando-Kissimmee-Sanford, FL | 15,873 | 5% |
| Austin-Round Rock, TX | 15,553 | -24% |
| Tampa-St. Petersburg-Clearwater, FL | 13,517 | -9% |
| Nashville-Davidson–Murfreesboro–Franklin, TN | 13,066 | -10% |
| Jacksonville, FL | 11,600 | -13% |
For multifamily permits, below are the top ten local areas that issued the highest number of permits.
| Top 10 Largest Multifamily Markets | Nov-23 (# of units YTD, NSA) | YTD % Change (compared to Nov-22) |
| New York-Newark-Jersey City, NY-NJ-PA | 26,079 | -40% |
| Dallas-Fort Worth-Arlington, TX | 23,533 | -24% |
| Austin-Round Rock, TX | 19,963 | -9% |
| Phoenix-Mesa-Scottsdale, AZ | 19,404 | 13% |
| Los Angeles-Long Beach-Anaheim, CA | 17,758 | -11% |
| Houston-The Woodlands-Sugar Land, TX | 17,420 | -33% |
| Miami-Fort Lauderdale-West Palm Beach, FL | 14,971 | 26% |
| Atlanta-Sandy Springs-Roswell, GA | 14,242 | -25% |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 11,086 | -40% |
| Seattle-Tacoma-Bellevue, WA | 10,175 | -45% |
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Interesting read! The decline in single-family permits in November 2023 reflects a potential slowdown in residential construction. Considering this, builders and investors in the construction industry may want to carefully assess market conditions before pursuing or securing construction loans in the current environment.