US Multifamily Built-For-Rent Starts Remain Elevated in Q3

Recently released US Census Bureau data from its Quarterly Starts and Completion by Purpose and Design survey, with additional analysis provided by the National Association of Home Builders (NAHB), reveal the count of multifamily, for-rent housing starts remained elevated during Q3. According to the Census Bureau, there were 104,000 multifamily construction starts in Q3. Of this total, 101,000 units were built-for-rent.

According to NAHB analysis, the market share of rental units of multifamily construction starts was near an all-time high of 98% for Q3, as the already small condo market remained held back due to higher interest rates. In contrast, the NAHB points out that the historical low share of condo building was set at 47% in 2005Q3 amid the condo building boom. An average share of 80% was registered during the 1980–2002 period. In Q3, there were just 3,000 condo construction starts.

Additionally, the NAHB notes that an elevated rental share of multifamily construction is holding typical apartment sizes below levels seen during the pre-Great Recession period. In Q3, the average square footage of multifamily construction starts moved down to 1,032 square feet. The median declined to 979 square feet.