Single-Family Construction Unfazed by Economic Downturn; Fifth Consecutive First-Quarter Permit...

Business Editors & Real Estate Writers

IRVINE, Calif.--(BUSINESS WIRE)--May 8, 2002

U.S. Housing Markets, published by the Meyers Group has just released its First Quarter 2002 Flash Report, reporting that builders recorded more single-family permits this quarter than in

According to Jeff Meyers, CEO of the Meyers Group, "Mild winter weather across a large portion of the nation and continued low mortgage rates pushed the number of single-family building permits issued to a new first-quarter record."

Single-family permits increased 4% to 291,291 during the first quarter of 2002, up from 279,816 in the first quarter of 2001. This year's pickup in activity is notable, as first quarter single-family permit activity increased by negligible amounts in both 2000 and 2001.

Activity on the regional level increased in three of the nation's four regions. The most significant rise in activity occurred in the Northeast where single-family permit levels increased 11% to 24,352 during the quarter. Permit levels in this region benefited from gains in the states of Massachusetts, Maine and Connecticut.

The South also exhibited signs of strength, as permit levels increased nearly 9% to 146,382 with a 21% increase in Florida driving growth levels in this region. The South retained its dominance, accounting for more than 50% of the single-family permits issued in the United States.

Permit levels also increased in the Midwest, rising 4% to 49,831. Of the 11 states in this region, single-family building activity decreased only in Indiana and Wisconsin. The West was the lone region to experience a downturn in the number of single-family permits issued, dropping 5% to 70,726 permits issued.

The mountain states showed the most significant declines, with permit levels in Colorado falling 18%, the steepest decline of any U.S. state.

Multifamily

Builders recorded 85,325 multifamily permits during the first quarter of 2002, a decline of more than 9% from first quarter 2001 levels. This quarter's figures are the lowest in the past five years and remain well below the heydays of the mid-1980s when first quarter multifamily permit levels topped out at more than 171,000.

Multifamily permit levels decreased in each of the nation's four regions and

in 25 of the nation's 50 states. Regional declines ranged from just 1% in the South to a 25% decline in the West. The five most active states account for nearly 48% of the multifamily permits issued in the United States.

Within the top five, Texas, Florida and Georgia posted healthy gains, while California and New York posted significant year-over-year losses during the first quarter.

About Meyers Group

With more than 30 offices nationwide, Meyers Group is America's largest independent real estate research firm. The company tracks and analyzes change in the new residential construction market, as well as its impact on the homebuilding, building product manufacturing, financial services and related industries.

Check out the company's online and desktop data and analysis products, consulting services and events at www.meyersgroup.com.

Any of the contents of this report may be quoted, with appropriate credit. To receive division or local market data from the USHM Flash Report, which offers a summary of 75 major metropolitan areas throughout the United States, contact Hunter Robbins. For subscription information, contact Bryan Glasshagel.