The number of multifamily, for-rent housing starts increased year-over-year during the first quarter of 2026, as per NAHB’s analysis of quarterly Census data.
The construction of 107,000 multifamily residences commenced during the quarter. Of this total, 103,000 were constructed for rental purposes.
This total of built-for-rent units was 21% higher than that of the first quarter of 2025.
The ongoing weakness in urban core areas suggests that this expansion primarily occurred in smaller metro areas and lower density markets, as indicated by prior NAHB analysis.
For the initial quarter, the market share of rental units in multifamily construction starts was 96%.
During the condo building surge in the third quarter of 2005, a historical low market share of 47% for built-for-rent multifamily construction was established.
From 1980 to 2002, an average proportion of 80% was recorded.
In the first quarter, the number of multifamily condo unit construction starts was 4,000, a significant decrease from the 7,000 units that were started a year ago, due to the ongoing challenges related to housing affordability.
The average apartment size is currently below the levels observed prior to the Great Recession, as a result of the increased rental share of multifamily construction.
The average square footage of multifamily construction starts decreased to 1,047 square feet, as indicated by the first quarter 2026 data.
The median, or typical unit, experienced a substantial decrease, reaching the lowest level on record at 960 square feet.
These measures are in accordance with the increased proportion of multifamily built-for-rent construction.
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