Multifamily Built-for-Rent Share

According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased during the second quarter of 2025. For the quarter, 109,000 multifamily residences started construction. Of this total, 102,000 were built-for-rent. This built-for-rent total was 21% higher than the second quarter of 2024.

The market share of rental units of multifamily construction starts was 94% for the second quarter. A historical low market share of 47% for bult-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 7,000 multifamily condo unit construction starts, an increase 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. However, according to the second quarter 2025 data, the average square footage of multifamily construction starts increased to 1,077 square feet. The median increased to 1,092 square feet. Multifamily unit size is tending higher as the market captures priced-out buyers from the single-family for-sale market.