Multifamily, For-Rent Housing Starts Continued to Climb in Q2, Approaching 36-Year High

According to the latest quarterly US Census data, with additional analysis provided by the National Association of Home Builders (NAHB), the number of multifamily, for-rent housing starts soared during Q2 2022. At 142,000 units started, Q2 was the largest quarter of rental multifamily construction since Q2 1986, or 36-years ago.

The NAHB notes that the market share of rental units of multifamily construction have jumped back to 96%. This is in contrast with the historical low share of 47% which was set in Q3 2005 during the condominium building boom. Between 1980 and 2002, the average share of multifamily construction built for-rent has averaged 80%. In Q2 2022, only 7,000 multifamily condominium construction starts were recorded.

According to NAHB analysis, the elevated rental share of multifamily construction is holding the typical apartment size below levels last seen during the pre-Great Recession period. Q2 2022 data shows that the average square footage of multifamily construction starts declined to 1,057 square feet, while the median increased to 1,036 square feet.