US Multifamily “Missing Middle” Posts Year-Over-Year Gain in Q4
Year-over-Year Gain for Multifamily Missing Middle
On Wednesday, the National Association of Home Builders (NAHB) updated its analysis of the “missing middle” constitution sector, defined as medium-density housing such as townhouses, duplexes, and other small multifamily properties.
The multifamily segment of the missing middle (apartments in 2- to 4-unit properties) has generally disappointed since the Great Recession, NAHB explained. However, there was a noticeable uptick for this type of housing construction in recent data. In Q4, there were 5,000 2- to 4-unit housing unit construction starts—up 25% from 2023Q3.
As a share of all multifamily production, 2- to 4-unit development was just above 5% of total multifamily development for Q4. Nevertheless, this is still lower than recent historic trends. From 2000–10, such home construction made up a little less than 11% of total multifamily construction.
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