According to NAHB’s study of quarterly Census data, the number of multifamily, for-rent housing starts fell somewhat in the fourth quarter of 2023.
For the quarter, 102,000 multifamily homes began construction. Of this amount, 98,000 were developed specifically for rent.
The market share of rental units in multifamily construction starts declined to a still-high 96% in the fourth quarter, as the already modest condo market was held back by rising loan rates.
In comparison, the record low of 47% was reached in the third quarter of 2005, amid the condo building boom. Between 1980 and 2002, the average share was 80%.
In the fourth quarter, just 4,000 multifamily condo construction starts occurred.
An increased rental share of multifamily construction is keeping average apartment size below levels seen prior to the Great Recession.
According to fourth-quarter 2023 data, the average square footage of multifamily development starts remained essentially stable at 1,050 square feet. The median fell to 1,022 square feet.
(Source: Buildradicals.com)
