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.
