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In the United States, it is expected that there will be approximately * multifamily housing starts more in 2026 than in 2025. However, it is forecasted that the number of construction starts for multifamily housing units will decline in 2027, after two years of increasing. 

Multifamily vs single-family housing demand

Multifamily housing includes various types of housing, such as apartment buildings, condominiums, duplexes, and townhouses. The number of housing starts of single-family has fallen in 2025 and was projected to further decline in 2026. In the past three decades, single-family home construction saw a peak in 2005, before it fell sharply before and during the Lehman crisis. Even during the pandemic housing boom in 2021, single-family home construction remained well below the levels of the early 2000s. A different trend can be observed in the multifamily housing segment. 2022 saw a sharp increase in multifamily home construction, which was well above the numbers of the early 2000s. The increased supply of multifamily home units has affected rent prices, which have been on the decline in the past years.

Are multifamily homes getting smaller?

The median size of multifamily homes has median size of multifamily homes has shrunk by nearly *** square feet between 2007 and 2025. This trend towards smaller homes suggests that space is becoming increasingly limited, or that consumers prefer smaller homes due to smaller mortgages, lower maintenance costs and lower utility costs.