According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts declined during the third quarter of 2024. For the quarter, 94,000 multifamily residences started construction. Of this total, 88,000 were built-for-rent. This was almost 14% lower than the third quarter of 2023.
The market share of rental units of multifamily construction starts declined to below 94% for the third quarter, as the built-for-sale, multifamily condo market experienced a gain. The 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 third quarter, there were 6,000 multifamily condo unit construction starts, up from 3,000 a year ago. While still a small market, this was the highest quarterly count since mid-2022.
An elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-Great Recession period. According to third quarter 2024 data, the average square footage of multifamily construction starts ticked higher to 1,061 square feet. The median edged up to 1,013 square feet. These estimates are near multidecade lows.
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