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Single-Family Construction Contracts Broadly While Multifamily Expands – Eye On Housing

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Home building trends diverged across geographies in the second quarter of 2026. According to the Home Building Geography Index (HBGI), single-family construction declined in nearly all geographic categories, although the contraction eased in most markets from the first quarter. Multifamily construction expanded across six of the seven categories, with activity increasingly concentrated in large metro core and suburban counties.

Single-Family

Single-family construction declined in six of the seven geographic categories in the second quarter. However, the downturn in single-family construction in the second quarter eased as these geographies contracted at a slower pace from the previous quarter.

Large metro core counties recorded the steepest decline, falling 13.9% and marking the fifth consecutive quarter of decline. This was an improvement from the 15.8% decline in the first quarter. Outlying counties in small metro areas were the only market to return to growth, increasing a modest 0.9% following four consecutive quarterly declines.

The geographic composition of single-family construction continued to shift toward smaller and less densely populated markets. Large metro core counties experienced the largest market share decline, falling 1.3 percentage points from a year earlier to reach another new low point at 14.6%. By contrast, small metro outlying counties posted the largest gain, increasing 0.8 percentage point to 10.9%.

Small metro core counties remained the largest single-family market, accounting for 29.4% of construction, followed by large metro suburban counties at 24.0%.

Multifamily

Multifamily construction expanded in all markets except large metro outlying counties. Large metro core counties increased 11.6%, recording three-quarters of consecutive growth. Compared to the previous quarter, the pace of increase has slowed but the market still recorded the strongest growth among all geographies.

Large metro suburban counties also followed a similar pattern, posting a 7.9% increase, although growth has slowed from the prior quarter. In contrast, large metro outlying counties declined 15.9% and were the only market that contracted for the multifamily sector.

Non-metro/micro counties posted the clearest acceleration, with growth rising to 10.3%, although these areas accounted for only 1.2% of multifamily construction.

Multifamily market share continued to shift toward large metropolitan areas. Large metro core counties gained 1.6 percentage points from a year earlier to reach 35.4%, while large metro suburban counties gained 0.5 percentage points to reach 27.3%. Together, these markets accounted for 62.7% of multifamily construction.

The second quarter of 2026 HBGI data along with an interactive HBGI map can be found at https://nahb.org/hbgi.



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

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Multifamily Missing Middle Falls Back – Eye On Housing

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Multifamily missing middle construction declined during the second quarter of 2026.

The missing middle construction sector includes development of 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.

For the second quarter of 2026, there were 3,000 2- to 4-unit housing unit construction starts. This was down significantly compared to the second quarter of 2025.

Over the last four quarters, there were 16,000 such starts, down from the prior four quarter period (21,000). Despite some gains in 2025, this subsector of residential construction continues to underperform relative to its potential, due in part to zoning restrictions.

As a share of all multifamily production, 2- to 4-unit development was just 3% of total multifamily development for the second quarter. This remains lower than recent historical trends. From 2000 to 2010, such home construction made up a little less than 11% of total multifamily construction.

Construction of the missing middle has clearly lagged during the post-Great Recession period and will continue to do so without zoning reform focused on light-touch density.



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

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Second Quarter 2026 Multifamily Construction Data – Eye On Housing

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According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased year-over-year during the second quarter of 2026. For the quarter, 117,000 multifamily residences started construction. Of this total, 109,000 were built-for-rent. This built-for-rent total was 5% higher than in the second 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 93% for the second 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 second quarter, there were 8,000 multifamily condo unit construction starts, up slightly 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 second quarter 2026 data, the average square footage of multifamily construction starts increased slightly to 1,053 square feet. The median, or typical unit, increased to 1,008 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. .

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Single-Family Permitting Declines Through June in Contrast to Multifamily – Eye On Housing

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Single-family permitting activity continued to weaken through the first half of 2026, while multifamily permitting remained somewhat stronger compared with the same period last year.

Over the first six months of the year, the number of single-family permits issued nationwide reached 465,301. Compared with the same period in 2025, this represents a 4.2 percent decline from the June 2025 total of 485,935. In contrast, multifamily permitting activity remained stronger, with 255,751 permits issued nationwide, marking a 4.5 percent increase from the same period last year.

Regionally, year-to-date single-family permitting declined in all four regions through June. The Midwest was essentially flat, while the South declined 3.6 percent, the West fell 6.8 percent, and the Northeast posted the largest decline, at 10.2 percent. Multifamily permits increased in three of the four regions, led by the Northeast (43.5 percent), followed by the West (14.0 percent) and the Midwest (1.4 percent). The South was the only region to post a decline, with multifamily permits falling 8.9 percent, driven largely by reduced permitting activity in major metropolitan areas across the region.

At the state level, 13 states and the District of Columbia recorded year-over-year increases in single-family permits through June, with gains ranging from 65.2 percent in the District of Columbia to 1.0 percent in Idaho. California reported no change, while the remaining 35 states posted declines. Nevada recorded the steepest decline, with single-family permits falling 26.0 percent.

The ten states issuing the highest number of single-family permits accounted for 62.8 percent of all single-family permits issued nationwide. Texas led the nation with 75,274 permits issued through June 2026, although this represented a 3.6 percent decline from the same period in 2025. Florida, the second-highest state, recorded a 5.0 percent decline, while North Carolina, ranking third, posted a 9.2 percent decrease.

Through June, 33 states and the District of Columbia recorded increases in multifamily building permits, while 17 states experienced declines. The District of Columbia posted the largest percentage increase, with multifamily permits rising 137.5 percent, from 469 to 1,114 units. In contrast, Nevada recorded the steepest decline, with permits falling 51.2 percent, from 3,866 to 1,888 units.

The ten states issuing the highest number of multifamily permits accounted for 61.0 percent of all multifamily permits issued nationwide. Through the first six months of 2026, California, which issued the largest number of multifamily permits, posted a 26.1 percent increase compared with the same period last year. Texas, the second-highest state, recorded a 23.7 percent decline, while Florida, ranking third, saw multifamily permits decrease 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. It is worth noting that the largest multifamily markets continue to show declines. Gains for multifamily permitting are occurring in smaller markets and for smaller builders.



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

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Multifamily Developer Confidence Weakens in Second Quarter – Eye On Housing

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Confidence in the market for new multifamily housing weakened year-over-year in the second 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 43, down three points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 74, down eight points year-over-year.

Multifamily developer sentiment is currently constrained by regulatory barriers and difficulty obtaining financing. The recently enacted 21st Century ROAD to Housing Act should provide some relief with respect to these challenges, but these policies will take time to implement. Meanwhile, rental housing demand is being supported by improving job growth during the second quarter of 2026. It is clear that supply-side headwinds continue to weigh on multifamily developer sentiment. In addition to relatively high interest rates and other financing issues, developers are finding it difficult to obtain approvals and utility connections in some parts of the country. High material prices and shortages of skilled labor also remain significant impediments

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 three components which experienced decreases year-over-year during the second quarter. The component measuring subsidized units fell seven points to 54, the component measuring mid/high-rise dropped four points to 32, and the component measuring garden/low-rise dipped two points to 48. Meanwhile, the component measuring built-for-sale units was the only one to increase year-over-year, up three points to 38.

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). 

Although all three components declined year-over-year, they all remained above the break-even point of 50 for the second quarter of 2026. The mid/high-rise component dropped 11 points to 62, the subsidized component decreased eight points to 82, and the garden/low-rise component fell seven points to 77.

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. .

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

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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. .

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

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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. .

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

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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. .

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First Quarter 2026 Multifamily Construction Data – Eye On Housing

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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. .

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

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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. .

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