Housing starts decreased by 8.5 percent in August, according to data from the U.S. Department of Housing and Urban Development. Within this number, single-family starts decreased by 7 percent, and multifamily development starts decreased by 11.7 percent.
Other multifamily development metrics have also declined, as multifamily permits decreased by 6.4 percent and units under construction declined 20 percent. A reduction in new apartment supply could be a positive indicator for investors in the segment, as it would mean supply is less likely to outstrip demand in the near term.
