According to NAHB’s study of quarterly Census data, the number of multifamily, for-rent housing starts increased in the first quarter 2025.
For the quarter, 88,000 multifamily homes began construction. Of this amount, 83,000 were developed specifically for rent. This was over 11% more than the first quarter of 2024.
In the first quarter, multifamily development starts had a 94% market share in rental units.
During the condo building boom in the third quarter of 2005, the market share for built-for-rent multifamily development fell to a historic low of 47%.
Between 1980 and 2002, the average share was 80%.
The number of multifamily condo unit development starts in the first quarter was 5,000, which was the same as the year before.
A higher rental percentage of multifamily building keeps average apartment size below levels seen before the Great Recession.
However, according to first-quarter 2025 data, the average square footage of multifamily construction starts decreased to 1,027 square feet.
The median has decreased to 1,027 square feet.
[Read more about this topic on Eyeonhousing.org]