Multifamily Built-For-Rent Housing Starts Remained Elevated in Q1

Recently released data from the US Census Bureau’s Starts and Completions by Purpose and Design for 2023Q1, with additional analysis provided by the National Association of Home Builders (NAHB), shows that the count of multifamily, for-rent housing starts remained elevated in Q1. Of the 127,000 multifamily residences that started construction, 123,000 units were being built for rental use.

During the first quarter, the market share of rental units of multifamily construction starts was at 96%, while the already small condo market remained constrained by higher interest rates. The NAHB points out that in contrast, the historical low share of 47% was set in 2005Q3 during the condo building boom. An average share of 80% was registered during the 1980–2002 period. In Q1, there were just 4,000 multifamily condo construction starts, less than half the total from a year ago.