Single-family starts permits declined in March, as higher interest rates weighed on housing affordability and produced a fourth straight decline for the NAHB/Wells Fargo HMI. Additionally, the cost and availability of materials, lumber, labor and lots remain key supply-side headwinds. Nonetheless, the resale market lacks inventory supporting ongoing demand for new construction. Single-family permits decreased 4.8% to a 1.15 million unit rate in March.

Overall housing starts were effectively flat in March at 1.79 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The March reading of 1.79 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months.

Within this overall number, single-family starts decreased 1.7% to a 1.2 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, continued to gain ground, rising 4.6% to a strong 593,000 annual rate.

Due to supply-chain effects, there are 149,000 single-family units authorized but not started construction—up 14.6% from a year ago.

In April single-family builder confidence decreased two points to a level of 77, according to the NAHB/Wells Fargo Housing Market Index (HMI). After peaking at a level of 90 in November 2020, builders have reported ongoing concerns over elevated lumber, OSB and other construction costs, as well as delays in obtaining building materials. The sharp rise in mortgage interest rates at the start of 2022 has also had an impact on sales expectations. Consequently, the market has likely reached an inflection point whereby a new volume trend based on current affordability conditions must be found. This will mean a shift lower for single-family demand and a step up in demand for apartment construction.

On a regional and on a year-to-basis, combined single-family and multifamily starts are 17.3% higher in the Northeast, 6.6% higher in the Midwest, 11.2% higher in the South and 7.5% higher in the West.

As an indicator of the economic impact of housing and as a result of accelerating permits and starts in recent quarters, there are now 811,000 single-family homes under construction. This is 27% higher than a year ago. There are currently 811,000 apartments under construction, up 21% from a year ago. Total housing units now under construction (single-family and multifamily combined) is 24% higher than a year ago. The number of units under construction is rising on both the total volume of construction, as well as longer construction times.

PHOENIX, ARIZONA – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of 14001 North 7th Street, Building A, a 6,000-square-foot office property located in Phoenix, Arizona.

According to Ryan Sarbinoff, regional manager of the firm’s Phoenix office, the asset sold for $1,550,000 ($258 PSF).

“The asset presented both owner users and investors an opportunity to acquire a medical office with a credit rated physical therapy tenant,” says Justin Smith, investment specialist in Marcus & Millichap’s Phoenix office.

Smith, Peter Bauman and Tivon Moffitt had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, a property management company based in Chandler, Arizona, was also procured by Smith, Bauman and Moffitt. The buyer plans to introduce a medical tenant to the vacant suite.

The subject property is located at 14001 North 7th Street within Moon Valley Corporate Center in Phoenix, Arizona. The center features monument signage and excellent exposure and visibility from 7th Street, where traffic counts exceed 40,000 vehicles per day. Constructed in 2004, the HOA takes care of all outside expenses including the roof, landscaping, paint and maintenance.

Palmieri Specializes in Leasing Regional Shopping Centers and Representing National Retailers

PHOENIX, ARIZONA – John M.Palmieri has joined Colliers in Arizona as Associate Vice President in the Retail Properties sector. He specializes in leasing regional shopping centers and representing national retail tenants throughout Arizona.

“John brings to Colliers nearly 20 years of experience in the real estate industry,” says Bob Mulhern, senior managing director with Colliers in Arizona. “His expertise, combined with an early career in finance, positions him ideally to handle complex client needs.”

Palmieri formerly served a vice president with DeRito Partners, where he was a top producer specializing in project leasing and sales. He is a member of the International Council of Shopping Centers (ICSC). Palmieri worked for nearly 10 years in the residential real estate field for Amberwood Homes. Prior to his career in real estate, Palmieri was in the Wealth Management Group at Merrill Lynch, building a strong understanding of equity, bond and derivatives markets. After working in financial servicess, Palmieri was attracted to the tangible aspect of real estate and pursued a career in the commercial property industry.