The number of single-family permits issued during January 2023 was more than 35% lower than the January 2022 level of 83,404.
Many builders reported slowing the pace of starts in the early months of 2023 to better align inventory levels with demand. According to an analysis by the NAHB, only North Dakota, the District of Columbia, and New Mexico reported single-family permit growth on a year-over-year basis in January 2023. The 10 largest single-family markets tracked by the NAHB recorded between a 4% and 63% decline in permit activity on a month-over-month basis in January
Year-to-date ending in January, single-family permits declined in all four regions. The Northeast posted a decline of 20.3%, while the West region reported the steepest decline of 46.9%. The Midwest declined by 39.1% and the South declined by 33.5% in single-family permits during this time. The South posted an increase of 16.4% in multifamily permits while the other three regions posted declines. Multifamily permits were down 33.1% in the Northeast, down 24.2% in the Midwest, and down 11.1% in the West.
The District of Columbia recorded the highest growth rate during this time at 20.0% going from 10 permits to 12. Forty-eight states reported a decline in single-family permits during this time ranging from 2.9% decline in New Jersey to 60.7% decline in Arizona. The 10 states issuing the highest number of single-family permits combined accounted for 65.6% of the total single-family permits issued.
Year-to-date, ending in January, the total number of multifamily permits issued nationwide reached 47,936. This is 2.0% below the January 2022 level of 48,912.
