Multifamily Market Experiences Surge in New Construction
Good news for the multifamily sector! April saw an uptick in overall housing starts, driven by a notable increase in multifamily construction, as reported by the U.S. Census and Department of Housing and Urban Development.
According to Friedman Real Estate,
- Multifamily Starts Jump: Starts for properties with five or more units surged 31.4% in April, reaching a pace of 322,000 units. This increase fueled the entire gain in total housing starts for the month.
- Single-Family Starts Remain Flat: Single-family starts, which make up the majority of residential construction, remained largely unchanged compared to March. While year-to-date they’re still up, this suggests a potential slowdown.
- Long-Term Outlook for Multifamily: Despite the April upswing, multifamily building can be volatile month-to-month. However, the strong start suggests continued demand for multifamily housing.