Multifamily Construction Hits 38-Year High

More multifamily units were completed in 2024 than any year since 1986, totaling 608,000 units, according to the National Association of Home Builders.  

Additionally, for the eighth year in a row, most newly constructed multifamily units were in buildings with 50 or more units, labeled as high-density buildings. Of all multifamily units completed last year, 330,000 (54%) were in high-density buildings and 278,000 (46%) were in low-medium density buildings. 

In the Northeast specifically, 68,000 new multifamily units were constructed, with 45,000 units built in high-density buildings and 23,000 in low-medium density buildings. 

Overall, the Northeast saw the least amount of total new multifamily units compared to the South (292,000), West (163,000) and Midwest (87,000). 

Moreover, nationwide, 95% of new multifamily units completed in 2024 were built-for-rent (580,000), and 55% of these units were in high-density buildings. These numbers highlight a significant shift towards high-density buildings. In 2004, only 25% of built-for-rent multifamily units were in buildings with 50 units or more. 

In comparison, NAHB cites that multifamily units built-for-sale rose from 20,000 in 2023 to 29,000 in 2024, with high-density buildings continuing to be the primary type of buildings where these units were built. Forty percent of built-for-sale units were completed in high-density buildings last year, up from 28% in 2023.