US multifamily for-rent housing starts remained elevated with a market share of rental units at 96% during Q1 2023; average square footage of multifamily construction starts has also ticked up to 1,065 sq. ft.: NAHB

WASHINGTON , May 26, 2023 (press release) –

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According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts remained elevated during the first quarter of 2023. For the first quarter, 127,000 multifamily residences started construction. Of this total, 123,000 were built-for-rental use.

The market share of rental units of multifamily construction starts stood at an elevated 96% for the first quarter as the already small condo market remained held back due to higher interest rates. In contrast, the historical low share of 47% 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 just 4,000 multifamily condo construction starts. This is less than half the total 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 first quarter 2023 data, the average square footage of multifamily construction starts ticked up to 1,065. The median increased to 1,018 square feet.

Tags: economics, home building, housing, mfbfr, multifamily, multifamily size

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