Multifamily Construction Makes Gains in Low Density Markets

Economics
Published

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Labor

May 13, 2025

What Are the Highest Paying Jobs in Construction?

Half of payroll workers in construction earn more than $60,320, compared to the U.S. median annual pay of $49,500, and the top 25% make at least $81,510, according to the latest May 2024 Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) and analysis by NAHB. See which occupations in the construction are the highest earning.

Material Costs

May 12, 2025

Statement from NAHB Chairman Buddy Hughes on U.S.-China Tariff Agreement

Buddy Hughes, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Lexington, N.C., issued a statement after the U.S. and China announced a 90-day pause on most of the tariffs each nation has imposed on one another.

View all

Latest Economic News

Economics

May 13, 2025

Inflation Eased Again in April

Inflation slowed to a 4-year low in April while shelter inflation remained elevated. Despite the easing, inflation may pick up in the coming months as possible inflationary pressure from enacted tariffs and other policy uncertainties continues to threaten economic growth and complicate the Fed’s path to its 2% target.

Economics

May 13, 2025

Residential Mortgages Experience Weaker Demand in First Quarter

Overall demand for residential mortgages was weaker while lending standards for most types of residential mortgages were essentially unchanged according to the Federal Reserve Board’s April 2025 Senior Loan Officer Opinion Survey (SLOOS).

Economics

May 13, 2025

Highest Paid Occupations in Construction in 2024

Half of payroll workers in construction earn more than $60,320 and the top 25% make at least $81,510, according to the latest May 2024 Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) and analysis by the National Association of Home Builders (NAHB). In comparison, the U.S. median annual pay is $49,500, while the top quartile (the highest paid 25%) makes at least $78,810.