Latest Posts:
Tag

multifamily

Browsing
In Research & Trends

Multifamily Gains Lift Overall Starts Despite Single-Family Decline – Eye On Housing

No Comments


Strong multifamily growth pushed overall housing starts higher in June, while single-family production remained sluggish as elevated mortgage rates, rising construction costs and persistent labor shortages continued to weigh on the market.

Overall housing starts increased 19.0% in June to a seasonally adjusted annual rate of 1.43 million units, according to a report from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau. This pace reflects the number of housing units builders would begin over the next 12 months if June’s activity were sustained.

Within the total, single-family starts decreased 0.2% to an 895,000 seasonally adjusted annual rate and were down 3.2% compared to June 2025. On a year-to-date basis, single-family starts are down 5.3%. Given recent volatility, the three-month moving average provides a clearer signal, falling to 902,000 units.

Multifamily starts, which include apartment buildings and condominiums, rose 76.2% from May to June to an annualized 532,000 pace. The three-month moving average for multifamily construction has trended higher to 445,000 units, and activity is 17.2% higher compared to year-earlier levels.

Regionally, on a year-to-date basis, combined single-family and multifamily starts were 4.5% higher in the Northeast, 1.7% higher in the South, 1.2% higher in the Midwest, and 4.4% lower in the West. Single-family starts were down in all four regions.

The total number of housing units under construction stood at 1.26 million in June, down 6.2% from a year earlier. Single-family homes under construction stood at 582,000 units, a 6.9% year-over-year decline. Multifamily units under construction slowed down to 682,000, down from peaks above 1 million units in December 2023 and 5.7% lower than a year ago.

Completions of single-family homes have improved to an annual rate of about 964,000 units. This marks a 5.5% increase from a year earlier. However, multifamily completions for buildings with five or more units were down 5.1% year over year to a 413,000-unit pace. On a year-to-date basis, total completions across both sectors are down 9.5% reflecting ongoing challenges in the residential construction sector.

Overall permits declined 3.0% to a 1.37-million-unit annualized rate in June. Single-family permits decreased 2.4% to an 871,000-unit rate and are essentially flat compared to June 2025. Multifamily permits are down 4.2% to an annualized 496,000 pace and are down 5.7% compared to June 2025. Looking at regional permit data on a year-to-date basis, total permits were 15.2% higher in the Northeast, 1.4% higher in the Midwest, 0.7% higher in the West, but 6.3% lower in the South. For single-family permits, the Midwest was the only region to post an increase, rising 1.3% reflecting the residential construction strength in the region.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Housing Starts Weaken in May as Multifamily Construction Slows – Eye On Housing

No Comments


Housing starts fell sharply in May, driven by a steep drop in multifamily construction. Meanwhile, single-family buildings also slipped amid high interest rates, rising construction costs and ongoing labor shortages.

Overall housing starts decreased 15.4% in May to a seasonally adjusted annual rate of 1.18 million units, according to a report from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau. This pace reflects the number of housing units builders would begin over the next 12 months if May’s activity was sustained.

Within the total, single-family starts decreased 1.9% to an 882,000 seasonally adjusted annual rate and were down 6.7% compared to May 2025. On a year-to-date basis, single-family starts are down 6.3%. The three-month moving average fell to 933,000 units. Multifamily starts, which include apartment buildings and condominiums, dropped 40.2% from April to May to a 295,000-unit annualized pace and were down 14.2% compared to May 2025.

Regionally, on a year-to-date basis, combined single-family and multifamily starts were 17.5% higher in the Northeast, 4.1% lower in the Midwest, 1.6% lower in the South, and 4.9% lower in the West. For single-family starts, the Midwest has shown resilience, with starts holding steady on a year-to-date basis, while the Northeast, South, and West continue to post declines.

Overall permits decreased 0.7% to a 1.41-million-unit annualized rate in May. Single-family permits increased 0.6% to an 886,000-unit rate but remained 1.8% below their May 2025 level. Multifamily permits decreased 2.8% to a 527,000-unit annualized pace but were up 2.5% compared to May 2025.

Looking at regional permit data on a year-to-date basis, permits were 10% higher in the Northeast, 2.4% higher in the Midwest, 6.7% lower in the South, and 0.1% higher in the West.

The total number of housing units under construction stood at 1.27 million in May, down 7.1% from a year earlier. Single-family homes under construction totaled 587,000, a 5.9% year-over-year decline. Multifamily units under construction fell to 679,000, down 8.1% from a year ago and well below the peak of more than 1 million units reached in December 2023.

Housing completions also continued to soften. Single-family completions fell to an annual rate of 872,000 units, down 16.8% from a year earlier. Multifamily completions for buildings with five or more units declined 8.4% year over year to a 426,000-unit pace.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Single-Family Permits Continue to Decline Through April as Multifamily Activity Strengthens

No Comments


Through April 2026, residential construction activity remained uneven across housing sectors. Single-family permitting continued to soften compared with a year ago, reflecting persistent affordability challenges and elevated borrowing costs, while multifamily permitting posted solid gains supported by stronger activity in several regions. Regional and state-level permit data reveal notable differences in housing market conditions across the country.

Over the first four months of the year, the number of single-family permits issued nationwide reached 299,642. On a year-over-year basis, this represents a 6.4 percent decline compared with the April 2025 total of 320,259. On the other hand, multifamily permitting activity was stronger, with 166,252 permits issued nationwide, marking a 7.5 percent increase from the same period last year.

Regionally, year-to-date single-family permitting declined in all four regions through April. The Midwest was essentially flat, the South declined by 6.3 percent, the West dropped 8.3 percent, and the Northeast fell 13.8 percent. Multifamily permits increased in three of the four regions, led by gains in the Northeast (up 33.5 percent), followed by the West (up 20.0 percent), and the Midwest (up 19.3 percent). The South saw an 8.4 percent decline, driven largely by reductions in large metro areas across Southern states.

At the state level, 13 states and the District of Columbia recorded year-over-year increases in single-family permits in April, with gains ranging from 28.0 percent in the District of Columbia to 0.6 percent in Nebraska and Minnesota. The remaining 37 states reported declines, led by Hawaii, which posted the steepest drop at 27.1 percent.

The ten states issuing the highest number of single-family permits accounted for 63.1 percent of all single-family permits issued nationwide. Texas led the country with 48,328 permits issued at the end of April 2026, although this represented an 8.2 percent decline compared with April 2025. Florida, the second-highest state, saw permits fall by 6.3 percent, while North Carolina, ranked third, experienced a decline of 12.6 percent.

Between April 2026 and April 2025, 34 states recorded increases in multifamily building permits, while 16 states and the District of Columbia experienced declines. Rhode Island posted the largest percentage increase, with multifamily permits surging 250.6 percent, rising from 170 to 596 units. In contrast, Nevada recorded the steepest decline, with permits falling 78.5 percent, from 3,426 to 738 units.

The ten states issuing the highest number of multifamily permits accounted for 61.3 percent of all multifamily permits issued nationwide. Over the first four months of 2026, California, which issued the most multifamily permits, recorded a substantial increase of 57.0 percent. Texas, the second-highest state, posted a decline of 20.6 percent, while Florida, ranking third, saw multifamily permits fall by 41.3 percent.

At the local level, the following are the ten metropolitan areas with the highest number of single-family permits issued.

Below are the ten metropolitan areas with the highest levels of multifamily permitting activity.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

First Quarter 2026 Multifamily Construction Data – Eye On Housing

No Comments


According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased year-over-year during the first quarter of 2026. For the quarter, 107,000 multifamily residences started construction. Of this total, 103,000 were built-for-rent. This built-for-rent total was 21% higher than in the first quarter of 2025. Prior NAHB analysis suggests this expansion primarily occurred in smaller metro areas and lower density markets, given ongoing weakness in urban core areas.

The market share of rental units of multifamily construction starts was 96% for the first quarter. A historical low market share of 47% for built-for-rent multifamily construction was set during the third quarter of 2005, during the condo building boom. An average share of 80% was registered during the 1980-2002 period.

For the first quarter, there were 4,000 multifamily condo unit construction starts, down significantly from a year ago (7,000) given ongoing housing affordability challenges.

An elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-Great Recession period. According to the first quarter 2026 data, the average square footage of multifamily construction starts declined to 1,047 square feet. The median, or typical unit, posted a large decline to 960 square feet, the lowest on record. These measures are consistent with the elevated share of multifamily built-for-rent construction.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Multifamily Developer Confidence Holds Steady in First Quarter – Eye On Housing

No Comments


Overall confidence in the market for new multifamily housing held steady year-over-year in the first quarter, according to the Multifamily Market Survey (MMS) by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 44, unchanged year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 69, dropping 13 points year-over-year.

Multifamily developer sentiment is roughly where it was at this time last year, although the combination of regulatory hurdles, interest rates, insurance costs and volatility in material prices is threatening the viability of some projects. Also, in some markets, developers are reporting that it has become more difficult to obtain permits for unsubsidized projects.

The MPI and MOI continue to show that the market for garden and low-rise apartments typical of outlying areas is stronger than the market for mid- and high-rise apartments. The gap is narrowing year-over-year for new multifamily construction (i.e., blue line), while widening for the occupancy of existing apartments (i.e., orange line). NAHB is projecting that multifamily starts will increase slightly in 2026, but current production rates are unlikely to be sustained through 2027.

Multifamily Production Index (MPI)

The MMS asks multifamily developers to rate the current conditions as “good”, “fair”, or “poor” for multifamily starts in markets where they are active. The index and all its components are scaled so that a number above 50 indicates that more respondents report conditions as good rather than poor. The MPI is a weighted average of four key market segments: three in the built-for-rent market (garden/low-rise, mid/high-rise, and subsidized) and the built-for-sale (or condominium) market.

There were two components which experienced increases year-over-year, while the other two experienced decreases during the first quarter. The component measuring mid/high-rise rose seven points to 35, while the component measuring subsidized units increased six points to 56. On the other hand, the component measuring garden/low-rise fell six points to 48 while the component measuring built-for-sale units inched down one point to 37. Only the component measuring subsidized units was above the break-even point of 50.

Multifamily Occupancy Index (MOI)

The survey also asks multifamily property owners to rate the current conditions for occupancy of existing rental apartments in markets where they are active as “good”, “fair”, or “poor”.  Like the MPI, the MOI and all its components are scaled so that a number above 50 indicates more respondents report that occupancy is good than poor. The MOI is a weighted average of three built-for-rent market segments (garden/low-rise, mid/high-rise, and subsidized). 

All three MOI components experienced year-over-year decreases in the first quarter of 2026; the mid/high-rise component dropped 17 points to 59, the garden/low-rise component fell 11 points to 71, and the subsidized component decreased nine points to 80. Nevertheless, all three MOI components remain well above the break-even point of 50.

For more recent information about the market, the survey contains a separate question asking multifamily developers to compare current market conditions to conditions three months earlier. In the first quarter of 2026, 21% of respondents said the current market is better, and 19% said it is worse. However, the majority of developers—60%—said that the market is currently about the same as it was three months ago.

The MMS was re-designed in 2023 to produce results that are easier to interpret and consistent with the proven format of other NAHB industry sentiment surveys. Until there is enough data to seasonally adjust the series, changes in the MMS indices should only be evaluated on a year-over-year basis.

Please visit NAHB’s MMS web page for the full report.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Fourth Quarter 2025 Multifamily Construction Data – Eye On Housing

No Comments


According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased year-over-year during the fourth quarter of 2025. For the quarter, 96,000 multifamily residences started construction. Of this total, 91,000 were built-for-rent. This built-for-rent total was 18% higher than in the fourth quarter of 2024. This marks a significant increase, and it is possible these numbers will be revised lower in future Census data given other multifamily data reporting.

The market share of rental units of multifamily construction starts was 95% for the fourth quarter. A historical low market share of 47% for built-for-rent multifamily construction was set during the third quarter of 2005, during the condo building boom. An average share of 80% was registered during the 1980-2002 period.

For the fourth quarter, there were 6,000 multifamily condo unit construction starts, flat from a year ago.

An elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-Great Recession period. According to the fourth quarter 2025 data, the average square footage of multifamily construction starts increased to 1,068 square feet. The median increased to 1,048 square feet. These measures are consistent with the elevated share of multifamily built-for-rent construction.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Multifamily Absorption Rate Remains Below 50% – Eye On Housing

No Comments


The percentage of new apartment units that were absorbed within three months after completion was unchanged for new units completed in the second quarter, according to the Census Bureau’s latest release of the Survey of Market Absorption of New Multifamily Units (SOMA). The survey covers new units in multifamily residential buildings with five or more units. The number of new multifamily units completed rose marginally in the second quarter and remained above 90,000 units for the seventh consecutive quarter.

Apartments

The percentage of apartments absorbed within three months has remained below 50% for four straight quarters. The SOMA data has never featured more than two consecutive quarters with under 50% absorption rates. Currently, the rate stands at 47%, meaning that 47% of the 93,680 units completed in the second quarter were rented within three months of completion. The median asking rent in the second quarter was $1,860, up 5.3% from $1,766 last year. The SOMA data has also displayed two quarters of median rent declines, as the asking rent has fallen from $1,941 for completions in the fourth quarter of 2024.

Along with the three-month absorption rate and completions, SOMA also reports absorption rates at six, nine, and twelve months after completion. For apartments completed six months ago (93,400 units), 70% have been absorbed into the market. Of the 125,100 apartments completed nine months ago, 85% have been absorbed. For those completed twelve months ago (142,700 units), 91% were absorbed into the multifamily market.

Condominiums and Cooperative Units

The three-month absorption rate for new condominiums and cooperative units rose to 69%. Total completions of new condominiums and cooperative units, according to SOMA, doubled in the second quarter from 2,551 to 5,167.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Low-Rise Multifamily Shows Strength at End of 2025; Other Segments Weak – Eye On Housing

No Comments


Even though garden/low-rise continues to be strong, overall confidence in the market for new multifamily housing decreased year-over-year in the fourth quarter, according to the Multifamily Market Survey (MMS) released today by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 45, down three points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 74, down seven point year-over-year.

Multifamily developers are somewhat less optimistic than they were at this time last year, except in the market segment for garden/low-rise apartments. This suggests that the 2025 trend of gains in multifamily market share for outlying metro and non-metro counties—where garden and low-rise structures are more common—is likely to continue in 2026.

Elevated construction costs and the local regulatory environment continue to be major headwinds to faster growth. While interest rates eased slightly in 2025, they still need to come down further to significantly spur new construction.

Multifamily Production Index (MPI)

The MMS asks multifamily developers to rate the current conditions as “good”, “fair”, or “poor” for multifamily starts in markets where they are active.  The index and all its components are scaled so that a number above 50 indicates that more respondents report conditions as good rather than poor. The MPI is a weighted average of four key market segments: three in the built-for-rent market (garden/low-rise, mid/high-rise, and subsidized) and the built-for-sale (or condominium) market.

The component measuring garden/low-rise was the only one to experience an increase year-over-year in the fourth quarter of 2025, rising two points to 54. This component has been above 50 every quarter in 2025. The other three components experienced year-over-year declines during the quarter. The component measuring mid/high-rise fell eight points to 31, the component measuring built-for-sale units dropped six points to 36, and the component measuring subsidized units decreased five points to 47.

Multifamily Occupancy Index (MOI)

The survey also asks multifamily property owners to rate the current conditions for occupancy of existing rental apartments in markets where they are active as “good”, “fair”, or “poor”.  Like the MPI, the MOI and all its components are scaled so that a number above 50 indicates more respondents report that occupancy is good than poor.  The MOI is a weighted average of three built-for-rent market segments (garden/low-rise, mid/high-rise, and subsidized). 

All three MOI components experienced year-over-year decreases in the fourth quarter of 2025; the mid/high-rise component plummeted 12 points to 62, the garden/low-rise component decreased five points to 76, and the subsidized component dipped three points to 88. Nevertheless, all three MOI components remain well above the break-even point of 50.

The MMS was re-designed in 2023 to produce results that are easier to interpret and consistent with the proven format of other NAHB industry sentiment surveys. Until there is enough data to seasonally adjust the series, changes in the MMS indices should only be evaluated on a year-over-year basis.

Please visit NAHB’s MMS web page for the full report.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Third Quarter 2025 Multifamily Construction Data – Eye On Housing

No Comments


According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased during the third quarter of 2025. For the quarter, 119,000 multifamily residences started construction. Of this total, 114,000 were built-for-rent. This built-for-rent total was 31% higher than the third quarter of 2024. This marks a significant increase, and it is possible these numbers will be revised lower in future Census data given other multifamily data reporting.

The market share of rental units of multifamily construction starts was 95% for the third quarter. A historical low market share of 47% for built-for-rent multifamily construction was set during the third quarter of 2005, during the condo building boom. An average share of 80% was registered during the 1980-2002 period.

For the third quarter, there were 5,000 multifamily condo unit construction starts, a decrease from a year ago.

An elevated rental share of multifamily construction is holding the typical apartment size below levels seen during the pre-Great Recession period. According to the third quarter 2025 data, the average square footage of multifamily construction starts decreased to 1,052 square feet. The median declined to 1,006 square feet. These measures are consistent with the elevated share of multifamily built-for-rent construction.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

2024 Multifamily MAI – Eye On Housing

No Comments


Following the release of the 2024 single-family MAI last week, the National Association of Home Builders developed the Multifamily Market Association Index (MAI) to measure how closely multifamily building permits in metro areas follow national patterns. By comparing local and national trends, the MAI helps industry leaders and forecasters better understand and predict housing market activity.

Nationally, multifamily permits displayed little variation over the second half of the 2010s. Permit levels began growing significantly during the pandemic and peaked at nearly 700,000 in 2022. However, both 2023 and 2024 reported declines, with 2024 having 496,000 units permitted, closer to pre-2020 levels.

The MAI uses 2015-2024 multifamily permit data to create five- and ten-year correlations for each metropolitan statistical area (MSA), showing their similarity to national patterns. The five- and ten-year correlations are then averaged, with more weight given to the five-year correlation. The resulting correlation coefficient ranges from negative one to positive one, indicating the strength and direction of the relationship between local and national trends.

The MSA that had the highest associations with the national trend was Clarksville, TN-KY with a correlation of 0.97, while the MSA that recorded the lowest association with the national trend was College Station-Bryan, TX. The scatter plot below illustrates the linear relationship between these MSAs and the national trend. For example, when national permit levels rose near 700,000, Clarksville (positive correlation) also had relatively high permit levels of around 2,500. At the same time, College Station-Bryan (negative correlation) had relatively low permits of about 230.

Of the 387 metro areas included in the multifamily MAI, the average correlation is 0.17. In total, 241 MSAs had a correlation greater than zero, and 145 MSAs had less than zero. One MSA had an average correlation of zero (Morgantown, WV), with no multifamily permits in the last five years. A positive correlation is expected as MSAs in total accounted for almost 95% of all multifamily permits in the U.S. on average between 2015 and 2024. A complete list of the MSA correlations is found here and shown on the map below.

Additionally, below are the top ten and bottom ten in terms of the Multifamily MAI.

Discover more from Eye On Housing

Subscribe to get the latest posts sent to your email.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
Load More
Pin It