Bigger Apartments: Multifamily Unit Size Sees Notable Growth

According to NAHB’s study of quarterly Census data, the number of multifamily for-rent housing starts fell in the fourth quarter of 2024.

In the quarter, 91,000 multifamily homes began construction.

Of this amount, 86,000 were developed specifically for rent. This is around 12% lower than the fourth quarter of 2023.

The market share of multifamily development starts’ rental units increased to 95% in the fourth quarter.

During the condo building boom in the third quarter of 2005, the market share for built-for-rent multifamily development fell to a historic low of 47%. Between 1980 and 2002, the average share was 80%.

There were 5,000 multifamily condo unit development starts in the fourth quarter, up from 4,000 the previous year.

A higher rental percentage of multifamily building keeps average apartment size below levels seen before the Great Recession.

However, according to fourth-quarter 2024 data, the average square footage of multifamily development starts increased to 1,129 square feet.

The median rose to 1,039 square feet. These are remarkable increases from multidecade lows.

[Read more on this story at Eyeonhousing.org]