Single-family home construction is making a comeback.
According to analysis provided by the National Association of Home Builders (NAHB), since early 2013, there have regularly been more multifamily units (residence within 2+ units) under construction when compared to single-family homes. This was result of multifamily construction recovering faster in the years following the Great Recession, as well as year after year of underbuilding in the single-family housing market.
The NAHB is reporting that the gap between the multifamily and single-family construction sector has been closing since early 2017, and as of June 2021, there are now almost an equal number of units under construction in both sectors. According to the NAHN, as of July there were 690,000 apartments and 691,000 single family homes under construction. This state reveals the degree of gains for single-family home construction at the end of 2020 and the start of 2021.
It also reflects the lengthening cycle of construction time in the single-family home sector. As a result, in August there were 702,000 single-family homes in the construction process — the most since July 2007.
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Construction Reversal: Single-Family, Multifamily Units Under Construction