Over the past year, multifamily residential construction in suburban and rural areas has outpaced expansion in larger metropolitan areas, leading to changes in apartment construction market share. Single-family construction has also exhibited a similar trend, as illustrated in the latest quarterly NAHB Home Building Geography Index.
The above figure shows that the shares of multifamily construction in lower density areas increased since the first quarter of 2016. Moreover, the change in market shares accelerated during 2019. This trend is likely to continue as housing leads the U.S. economic recovery from the coronavirus-induced slump, albeit with changed housing demand reflecting a preference for lower-density markets.
NAHB economist Litec Murali provides more details in this Eye on Housing blog post.