Multifamily Built-For-Rent Housing Starts Remain Elevated in Q2

According to the latest quarterly US Census Bureau data, with additional analysis provided by the National Association of Home Builders (NAHB), the count of multifamily, for-rent housing starts remained elevated in 2023Q2. Of the 138,000 multifamily residences started in Q2, a total of 135,000 were built-for-rent.

The NAHB reports that the market share of rental units of multifamily construction starts reached an all-time high of almost 98% in Q2, as the already small condo market remained held back by higher interest rates. In Q2, there were just 3,000 multifamily condo construction starts. In contrast, the historical low share of 47% was set during 2003Q3 during the condo building boom. An average share of 80% was registered during the 1980–2002 period.

The NAHB analysis noted that an increased rental share of multifamily construction is holding the typical apartment size below levels seen during the pre-Great Recession period. According to 2023Q2 data, the average square footage of multifamily construction starts ticked up to 1,072 square feet. The median increase was 1,062 square feet.